Angus Council tenants face a 4.1% rent rise this year.
It will see the average council house rent jump £3 per week to £75.91.
And it is the highest level of increase experienced by tenants for nearly a decade as the council struggles to plug a £52 million budget sheet black hole in the next three years.
But it is also the lowest of three options going before communities committee councillors when they meet on Tuesday.
Trio of options
Proposals for increases of 4.1%, 5.1% and 6.1% were put to the tenants’ steering group.
Almost 60% voted in favour of the lowest increase.
However, the total response was just 220 votes – less than 3% of all council tenants.
Angus has previously adopted a strategy of increasing rents by 1% above CPI (Consumer Price Index).
Last year councillors pegged the rise to just 1% as cost-of-living pressures emerged.
The CPI figure was more than 10% when tenants were surveyed in July so an increase on a similar scaled was ruled out.
But officials have warned this year’s below-inflation hike is likely to be a one-off.
“This increase is well within the commitment made by COSLA leaders not to increase rents by more than £5 per week,” say vibrant communities director Alison Smith and finance chief Ian Lorimer in their joint report.
It will keep Angus rents among the lowest in the country.
“The continued high rate of inflation and its impact on the cost of living for households is a critical factor.
“Every year it is imperative a balance is struck between maintaining rents at an affordable level, whilst also being able to invest in stock improvements, and increase the supply of new housing.
“However as inflationary pressures increasingly impact on all areas of business, it is becoming harder to balance these priorities.”
“Whilst the outcome from the consultation with tenants of a proposed rent rise significantly below CPI will be of benefit to tenants in these straitened times, the affordability assessment indicates – based on the current assumptions – that this would not be a situation the HRA could sustain beyond the short-term.
“There will therefore be a need to return to above inflation increases in future years.”
Dundee City Council tenants face a 3% rise from April.
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