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Getting Good Value from Rent and Service Charges

Getting Good Value from Rent and Service Charges

This section covers value for money, rents and service charges.

Value for Money Standard

To meet the value for money standard we must manage our business so that tenants, owners and other customers receive services that provide continually improving value for the rent and other charges they pay.

Following the review by the Council and in consultation with our tenants, the average weekly rent increase applied for financial year 2025/26 was 10% compared to the Scottish Local Authority average 6%.

Percentage of tenants who feel their rent represents good value for money

2016 2019 2023 Scottish LA Average
93.23% 86.02% 94.66% 80.1%

The latest Tenant Satisfaction and Aspiration Survey shows that there has been a large increase in the percentage of tenants who feel their rent represents good value for money in comparison to the 2019 survey. The figure is also significantly higher in comparison to the Scottish Local Authority average. Our average weekly rent is £97.94 and is slightly higher than the Scottish Local Authority average of £89.17. 

Rents and Service Charges Standard

To meet the rents and service charges standard we set rents and charges in consultation with tenants and other customers so that we find the correct balance between providing the level of services required, the cost of these services and whether current and future tenants and service users can afford them.

Rent collected

  2022/23 2023/24 2024/25 Scottish LA Average
Rent collected as percentage of total rent due 98.02% 99.05% 99.21% 100.4%

Performance in rent collection has seen an improvement from last year and is almost in line with the Scottish Local Authority average. Our Housing Officers work hard to engage with the tenants and ensure that they pay their rent on time. The staff will work with tenants to try to deal with any rent issues at the outset once they are discovered.

There has been an increased effort in collecting rent from both current and former arrears.

Rent Arrears

  2022/23 2023/24 2024/25 Scottish LA Average
Rent arrears as percentage of total rent due 11.51% 11.15% 7.25% 8.6%

There has been a slight reduction in rent arrears from the previous reporting period. We acknowledge that the cost-of-living crisis has impacted some of our tenants’ ability to pay rent on time. If tenants struggle with arrears, our Housing Officers will work closely with our tenants to help them make manageable debt payments. If required, housing officers can also signpost tenants to available support services to help reduce rent arrears.

Void Rent Loss

  2021/22 2022/23 2023/24 Scottish LA Average
% of rent due lost through properties being empty 1.02% 1.34% 0.82% 1.7%

We are pleased to report a continued improvement in our void rent loss figures, with performance better than the Scottish average. Combined effort from the repairs team and housing officers ensure that properties are returned quickly and applicants are signed up to properties promptly.  This reduces the time homes remain empty, helping to minimise rent loss and make the best use of our housing stock. 

Former Tenant arrears written off

Year Total Value Percentage
2022/23 £0 0%
2023/24 £1,772,416 2.65%
2024/25 £736,233 61.23%
2024/25 Scottish LA Average   31.4%

Former Tenant Arrears (FTA) had been increasing since 2019/20. But in 2024/25, things improved thanks to a new team in the Housing Service that focuses on recovering unpaid rent from former tenants. 

Staff have worked hard to recover these arrears, and in June 2024, the Council agreed to write off cases that could not be recovered. The remaining cases will now be managed through a new system that helps identify which cases need action. It will also highlight cases where tenants have passed away, cannot be traced, or already have legal decisions in place ensuring each case is handled properly.

A revised and updated policy for managing both current and former arrears is under development and will be presented to the Council for approval following the necessary consultation and review. 

For Further Information Contact

Housing
Kilncraigs, Greenside Street, Alloa, FK10 1EB
Tel: 01259 450000
Email: