The cost of rented accommodation is something that a large amount of the population is now concerned over, especially as so many now rent their homes instead of own them. However, at the same time the cost of living has increased which means that both private and social landlords have had to increase their rent prices, which proved an unpopular decision amongst tenants.
It seems as though the rented housing sector is balancing on a knife’s edge as landlords try to make a living whilst not overcharging their tenants to the point that they fall into rent arrears. This is why many have invested in landlords insurance in order to protect them for upcoming changes. However, the tenants of many housing associations are finding changes more difficult to adapt to, especially in the town of Glasgow where rent prices have not increased once but twice recently.
Last year the Queen’s Cross Housing Association increased the amount of rent they charged by 4.5 per cent, and now they are planning a further 4.6 per cent increase which will mean some tenants will now have to pay an extra £30 a week. So far residents have launched a campaign opposing the increase, however the association have said that it is necessary due to the upcoming welfare reforms.
Chief executive of Queen’s Cross Housing Association Shona Stephen said: “The consequence of the welfare reforms is that we are trying to manage the impact on services without harshly impacting on tenants. The ‘bedroom tax’ will affect about 300 tenants. The cost for us will be about £176,000. Those tenants will have to find money they did not have before.”
“Alongside that is the Universal Credit, which will go directly to the tenants. They might up using that money for other costs. About 70% of our tenants qualify for housing benefit. This is paid directly to us, but in future we will have to pursue 4000 of our tenants for rent payments.” The council have also claimed that the average rent for their tenants is currently £66.70 a week, which is lower than other housing associations of a similar size.