Langstane’s proposed spending budget for 2007/2008 - What it means for you
Langstane has produced the proposed spending budget for 2007 to 2008. We are, among other things, proposing to spend over a £1 million pounds on major repairs for tenants which include £516,000 for kitchen and boiler replacement and £163,000 for external paintwork.
Rents are our biggest source of budgetary income, and are predicted to rise by 5.7% or by approximately £2.62 per week on our average rent from 1st July 2007. The money generated by the rent rise will fund our planned projects. The proposed rent rise was calculated using January’s inflation plus 1.5%. The increase will not apply if you get your rent set by the Rent Officer, or if you live in a pre furnished tenancy. In the latter, rent increases will be determined by the agreed lease we have with the owners. Service charge proposed increase is 4.2%.
The figures below show how we propose to spend the money brought in from the rent. Last years figures are in the brackets.
How Langstane rent is spent Equivalent pence in the pound 2007/08 (2006/07)
Management - 35p (37p)
Service Costs - 4p (4p)
Loan Interest - 21p (18p)
Maintenance - 13p (11p)
Major / Cyclical Repairs - 18p (19p)
Bad Debt / Voids - 5p (7p)
Property Depreciation - 4p (4p)
TOTAL = £1.00
Projects planned for the coming financial year include:
• The final phase of a £500,000 investment programme on the installation of a new computer system, which is expected to be highly beneficial in our continuing aim of providing you with high quality customer service.
We compare our rents to other landlords locally and further a field. The figures below show the confirmed rent increases in the Local Authorities in our area of operation:
Local Authority Rent Increase 2007 / 2008
Aberdeen City Council 6.4% (48 week year basis)
Aberdeenshire Council 4.9%
Moray Council 3.5%
All Langstane tenants have been sent individual letters informing them of the proposed increase and asking them for their views on the matter. Langstane Chairman, Paul Hannan issued a diect statement to the tenants. He said: "Due to ever increasing financial pressure not least of which a higher than anticipated level of inflation and despite having explored other differing options, the Association unfortunately finds itself with no other option but to seek an increase in its rental income. We anticipate that tenants will be disappointed with this decision and will understandably have questions about it, which we will answer to the best of our ability."
Tenants views and comments can be forwarded to the Tenant Participation Officer, Andrew Ochia. Andrew says: “It is Langstane’s policy to try and involve our tenants and customers in as much of our decision-making as possible so we are very interested in hearing your views on the budget and the accompanying rent increase. If you forward your views and comments to me by 16th April 2007, I will make sure they are put forward to our Management Committee, whose next meeting is on 23rd April 2007.”
You can telephone Andrew on 01224 423008, contact him by text on 07801078003 or by e-mail at – andrew.ochia@langstane-ha.co.uk; or through the feedback section of this website.
