Glasgow’s social work team is set to extend the lease of flats for asylum seekers in Springburn, however the rent will soar by 35%.
Two blocks, containing 20 two-bed flats, at Aman Court on Laverockhall Street are currently used to house young asylum seekers while their applications are considered.
They have been used since 2011 at a rent of £186,000 per year, but “volatility” in the private rental market means the new cost is expected to be £250,800.
Council officials have said the homes are required for at least three more years, and councillors will be asked to back a five-year agreement, with a break clause, at a meeting on Thursday.
The lease, which had been due to end in August last year, was initially extended for one year, at £186,000, while a review of its requirements was carried out.
“Following that review, Social Work Services have determined that they have a requirement for the service for at least the next three years with the possibility that might be extended to five years,” a council report stated.
“Since the lease was extended last year the private residential letting market has seen a period of increased volatility due to several factors.
“As a consequence of these factors, the supply of private residential lets has reduced at a time when demand has increased resulting in an increase in rents for available residential lets.”
After talks with the landlord, Loch Investments Ltd, the rent proposed to councillors has increased by around 35%, although officials have said it will include heating and hot water costs.
“The energy market has seen similar volatility to that seen in the private residential rental market,” they added.
If the proposal is agreed, the council will have the option to break the lease after three years. Rent payments will be taken from Glasgow’s health and social care partnership’s budget.