Hjaltland Housing Association (HHA) has announced plans for a proposed rent increase of 5.6 per cent for the upcoming financial year. This increase is intended to address a period between 2023 and 2025 during which tenants experienced below-inflation rent hikes aimed at minimizing financial strain on households.
According to HHA, the 5.6 per cent rise, which exceeds the current inflation rate by two percentage points, translates to an average increase of £6.41 per week per household. This proposal is notably lower than the 7.5 per cent increase suggested for housing tenants under the Shetland Islands Council.
HHA has emphasized that all rental income is reinvested into its homes and services. As costs rise due to inflation, the association states that a rent increase is necessary to continue delivering quality services to tenants. HHA’s policy stipulates that rent levels will not exceed 25 per cent of the median income for Shetland, although it acknowledges that some households may find affordability challenging. The association has encouraged tenants facing financial difficulties to reach out for assistance.
Investment in Maintenance and Tenant Satisfaction
In its plans for the fiscal year 2025/26, HHA aims to allocate just under £2 million for maintenance, with a similar investment projected for 2026/27. The organization’s recent information leaflet highlights its performance metrics, including an average time of 6.17 days to re-let properties and an average repair completion time of 6.08 days, both of which exceed national averages.
The association has also shared results from satisfaction surveys, revealing that approximately 93 per cent of tenants are either satisfied or very satisfied with their housing experience. As HHA moves forward, it is currently consulting with tenants regarding the proposed rent increase until February 6, 2025. The new rates are set to take effect on April 1, 2025.
Hjaltland Housing Association operates numerous housing schemes across both the mainland and islands, managing over 885 homes. Preparations are ongoing for its largest development to date at Staney Hill in Lerwick, which will provide an additional 300 homes. This initiative represents HHA’s commitment to expanding housing availability while ensuring tenant satisfaction and retention.
