Housing / Housing association consults on 5.6 per cent rent increase
HJALTLAND Housing Association (HHA) says it is proposing a rent increase of 5.6 per cent for the next financial year.
The association said this will help to “rebalance” a period between 2023 and 2025 when tenants had below-inflation increases to minimise the impact on households.
HHA said a 5.6 per cent increase – which is two per cent above inflation – would equate to an average rise of £6.41 per week per household.
This is less than the proposed increase facing Shetland Islands Council housing tenants, which is 7.5 per cent.
In an information leaflet given to tenants, HHA said all of its rent is re-invested back into homes and services.
It added that any inflationary increase means it will cost more to deliver services – therefore requiring a rent rise.
HHA said it is written into its policy that rent levels will not go above 25 per cent of the median income for Shetland.
“However, we acknowledge this is based on averages and some households will have concerns regarding the affordability of their rent,” it added in its leaflet.
“We do have help on hand and would always urge any tenant who is struggling financially to reach out to us.”
HHA said it will spend just under £2 million on maintenance in 2025/26, with a similar level of investment planned in 2026/27.
The information leaflet also highlights how HHA is performing better than the national average on several aspects including the average days to re-let a property (6.17 days) and time to complete a repair (6.08 days).
Under the heading ‘does Hjaltland Housing Association rent provide true value for money to all tenants?’ the leaflet points to satisfaction survey results, which say that around 93 per cent of tenants are satisfied or very satisfied.
The association is currently consulting tenants on the proposed increase until 6 February, with new rates commencing from 1 April.
HHA has housing schemes across mainland and isles’ locations, with more than 885 homes on its books.
Preparatory work continues on its largest project to date at Staney Hill in Lerwick, which is set to provide a further 300 homes.
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