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5. Rent levels and income from rents (Charts 3 and 4)
In 2008-09 the 26 local authorities with council houses are budgeting to raise a total £848 million in income from standard rents on their 322.9 thousand houses. The average rent of £50.51 per week in 2008-09 is an increase of £2.16 (4.5%) over the average of £48.35 per week in 2007-08. In the 10 years between 1997-98 and 2007-08 rents increased by a little over 10% in real terms, a real increase of about 1% per year. Within the overall Scottish average there is a wide variation between councils in average rents, from £39.40 per week in 2008-09 in Moray to £64.44 in Edinburgh, a difference of £25.04 per week.
Chart 3: Scotland: Average council rent per week
Chart 4: Average weekly rent 2008-09
Housing benefit accounts for a high and increasing proportion of council rent income. In 2008-09, rent rebate subsidy is expected to be £561.6m, representing 66% of total income from standard rents. In 2008-09 rent rebate subsidy as a proportion of standard rents varies from 41% in Midlothian to 106% in West Lothian. Rent rebate subsidy in some councils - notably Edinburgh and West Lothian - exceeds standard rent income because the councils also receive housing benefit for households in some forms of temporary accommodation.
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