Council tenants in Perth and Kinross are set to be hit by rent increases as financial pressures grow.
A 2.2 per cent rise for 2023/24 is being recommended following a consultation which gathered over 2600 responses.
It would result in an average rental figure of £75.23 per week compared to the projected Scottish local authority average of £80.41.
The proposal will be considered at a meeting of the Housing and Social Wellbeing Committee on Wednesday, January 25.
Perth and Kinross Council (PKC) said it would allow them to make new and increased investment.
This would include an additional £15 million to be invested over the next five years to buy-back 30 ex-council properties each year.
Funds would also be spent on new fire sprinkler systems, additional resources for net-zero carbon emissions, and covering the increasing costs of buying stock for repairs and improvements.
It comes as the Housing Revenue Account (HRA) – the pot of money made up of tenants’ rent that pays for housing services – faces several cost pressures over the next 12 months.
These include the rising cost of building materials, as well as paying for the implementation of Scottish Government policy such as meeting climate change obligations and carrying out electrical checks on all
their properties.
For the sixth year running each tenant was given the chance to vote on three different rent increase options. These options were based on what tenants said their priorities were for investment during an ongoing process of engagement throughout the year.
A record high of 2625 tenants responded to the consultation – 33 per cent of tenants.
Over half (51 per cent) of tenants said they preferred the option of a 2.2 per cent increase.
PKC says it currently has the sixth lowest council rent level in Scotland, and estimates its rents are around nine per cent lower than neighbouring local authorities and 23 per cent lower than local housing associations.
Housing and Social Wellbeing convener, Councillor Tom McEwan, said: “The proposed increase in rent would give Perth and Kinross Council an average rental figure of £75.23 per week compared to the projected Scottish local authority average of £80.41.
“We would continue to have one of the lowest local authority rents in Scotland whilst being able to make important investments in housing services that our tenants have told us they want to see, continue to increase our housing stock and also cover significant increasing costs that we face.
“We know that for many people finances are challenging at the moment, and so affordability is vital when considering any increase in rent.
“We carried out an assessment and found that 87 per cent of our residents could afford our proposed rents based on their income alone, without considering any housing benefit they receive.
“We have also put in place a wide range of practical financial help and advice for anyone who needs it.
“Our Tenancy Sustainment Fund and Housing Locality Teams are available to support our tenants.
“I would strongly encourage anyone who is struggling to pay their rent to contact us on 01738 476000 to take advantage of the financial support that housing staff and other council colleagues can provide.
“I would like to thank the record number of tenants who took part in this consultation on rent levels.
“It is vital that our tenants have a strong voice in making these important decisions.
“We’ll continue to work very closely in partnership with tenants to ensure we deliver the highest quality services for them,” Cllr McEwan added.
“A wide range of support measures have been put in place by the Housing Service to help tenants with the cost of living crisis.”
