Midlothian Council Rent Survey 2026/27 - 2028/29

Overview

This survey focuses on an important issue for Midlothian Council tenants and housing list applicants: the rent we charge for our homes.

This survey concerns the rent which will be charged from 1 April 2026 until 31 March 2029.

Why your views matter

It is vital that you read this information before completing the survey.

The survey presents rent setting options for future rental charges for council housing from April 2026, which will

• Support the continuing investment in the Council’s existing Housing stock e.g. kitchen and bathroom upgrades
• Determine the number of new build homes which will be built beyond those which are already in progress
• Support the Energy Efficiency Standard for Social Housing (EESSH) to improve the energy efficiency of social housing

The Energy Efficiency Standard for Social Housing (EESSH) was introduced by the Scottish Government to improve the energy efficiency of social housing and the statutory target that by 2040 no more than 5% of households in each local authority area should be in fuel poverty. Meeting EESSH is a statutory requirement for all Scottish local authorities. The EESSH cost for Midlothian Council is currently estimated at £169m.

Current rent charges

The table below shows Midlothian Council’s average weekly rent charges and the Scottish average weekly rent levels for 2024/25. It shows that Midlothian Council rent levels are slightly higher than the Scottish average for 1-bedroom properties but lower for properties with 2 or more bedrooms.

How affordable is Midlothian Council’s Housing?

Rent levels must remain affordable. It is often suggested that when housing costs exceed 30%-35% of a household’s income, costs are judged to be unaffordable. The table below shows an average weekly two-bedroom Midlothian Council house rent and compares this to a gross household income based on a full-time employee working 36 hours per week who receives the minimum wage (£12.21 per hour). It shows that current rents are well below the 30%-35% affordability calculation. If the maximum rent increase option was applied for the next 3 years (5.84% increase per year) a householder working full time and earning the minimum wage would still be paying less than 30% of their gross income to pay for housing costs.

New Council Housing in Midlothian

Since 2006 Midlothian Council has built over 1,714 new council houses, one of the largest council housing development programmes in Scotland. Despite the considerable investment in new housing a total of 6,006 households are currently waiting for council housing in Midlothian.  The vast majority of housing list applicants are Midlothian residents, many of whom have waited years for affordable housing. In 2024/25 the Council let 588 homes so more homes are required to reduce the number of people on the waiting lists as we do not get enough houses to relet from our existing stock.

Funding for new council housing does not come from council tax income, it comes from the rent tenants pay and from Scottish Government funding.

Options for future rent setting

We now need to consult with all tenants and housing list applicants and ask for their views on future rent charges. The table below shows proposed options for the three-year period of 2026/27 to 2028/29. It is estimated that EESSH2 (improving the energy efficiency of social housing) will require £169m. The following table illustrates the rent options available and the number of new build properties which would be built as a result e.g. a 4.77% rent increase would pay for EESSH2 but no new build programme beyond those properties which are already planned, whereas a 5.84% rent increase would enable EESSH2 and 500 new build units.