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Rent Increase 2025/26
Message on behalf of Argyll Community Housing Association’s Board of Management.
During November 2024, we consulted all tenants on a proposed rent increase of 4%. This was based on the amount we determined was required to meet the running costs of the Association based on our business plan. Just after we launched our consultation, the UK Government made the decision to increase employer National Insurance Contributions from April 2025. This has led to an increased cost for the ACHA Group of £256,000 per annum which was not anticipated when the consultation was drafted and was not budgeted for.
At Argyll Community Housing Association, we are very aware of the increased cost of living for our tenants in recent years and wanted to keep the rent increase as low as possible. Our Board of Management asked for costs savings to be made and we have managed to make some cost savings but we have not been able to absorb the full cost of the National Insurance increase.
At its meeting on 6th February, the ACHA Board of Management carefully considered the proposed rent increase for 2025/26 alongside the budget for the same period. All feedback provided by tenants as part of the consultation was included for the Board to review and any concerns raised have been passed to the relevant department for action. The Board have agreed to a rent increase of 4.75% which will come into effect from Monday 7th April 2025 but the Board wanted it communicated to tenants that the additional 0.75% is solely as a result of the additional cost of the imposed employer National Insurance Contributions which was unknown and unforeseen at the time of the rent consultation.
Rent notification letters will be sent out to all tenants at the end of February, detailing the annual rent charges and any services charges if applicable for the 2025/26 rent year.
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