Council top brass have refused to rule out an Aberdeen-wide rent increase to cover the costs of demolishing and replacing Torry Raac homes.
Within days, a crunch decision will be made on the 500 properties in the Balnagask area found to have the crumbly material.
Housing bosses say budgets are under “immense amounts of pressure” due to the Torry crisis.
The local authority has already spent huge sums rehoming scores of people living in properties deemed at risk.
That included £1,500 sums for those evacuated, along with additional “disturbance payments” to fund removals, new carpets and more.
All this meant the housing fund was plundered, and residents were warned that upgrades planned at various other properties would be delayed until next year.
And now housing bosses have refused to rule out a rent increase for council tenants all over the city to pay the eye-watering £130 million needed for the huge replacement project.
What are the council’s plans for Torry?
A council report says the best option is to knock down the Raac-affected homes and build new social housing in its place.
A total of 504 homes would be rebuilt, with 366 of them being council owned, and 138 privately owned.
Officials would seek to buy those private properties from their owners, or obtain them via compulsory purchase orders.
The final decision will be made on Wednesday.
But the £130m price would further strain the city’s coffers…
‘Incredibly challenging decisions’ ahead according to council chief
Housing convener Miranda Radley told The Press and Journal that “incredibly challenging decisions” will be required to balance the council’s books.
Ms Radley said the Raac discovery and soaring construction inflation were putting funds under an “immense amount of pressure”.
Another burden councillor Radley points to is the “two years of rent freeze brought forward in recent years”.
How has the rent freeze hit the council?
It saved the average local authority tenant around £350 a year in 2021/22 and 2022/23.
But Ms Radley said this has had a dire effect on housing cash.
She added that a 30-year business plan to be decided in October “will outline how we balance the books” and “continue to provide high quality housing for our tenants”.
Council insider says Raac bill could increase rent across city
A well-placed council insider suggested an Aberdeen-wide rent increase could be a likely way of paying for the £130m project.
And when pressed on this, Ms Radley refused to rule it out.
Although she said the council will seek to “minimise the rising cost of rent for tenants”, the housing convenor stressed the need for more funding.
“There will be some incredibly challenging decisions required to ensure continued investment in our housing and balance the books at the same time,” Ms Radley added.
Read more:
Conversation