Angus Council’s plan to simplify the way it charges its rent has been passed at a special meeting of the communities committee.
The move will see the average weekly rent increase from £55.20 a week to £63.46 a week in four years’ time.
Tenants in some properties will feel the results of the ‘rent harmonisation’ policy more than others, with those in one-bedroom properties seeing bigger increases.
The average one-bedroom flat currently rents for £41.61 a week, but this will increase by 25% in the four-year period to £52 a week.
Addressing the committee on Thursday, Tom O’Brien from the Angus tenants steering group said they were in favour of the move.
“We agree that the previous structure wasn’t clear and that it was necessary to have a simpler structure that would be easier to understand for tenants and staff,” he said.
“We have worked closely with staff and agreed there should be a base rent for all properties. An additional payment would be made for a house and for every bedroom in a property.”
The changes will mean that for the year 2017-18 the weekly base rate for flats will be £45 and for houses will be £60, with an additional £7 charge for each bedroom in the property.
Councillor David Fairweather said he was unhappy at additional bedrooms being charged this way and wondered if this was Angus Council’s way of replicating the so-called bedroom tax.
He said: “My understanding is that the percentage of people on housing benefit in council properties is about 54%.
“That means 46% of people are going to have a fair rise in their rent over the next four years. There will be an additional charge per bedroom. I hope that Angus Council aren’t bringing in their own ‘bedroom tax.’
“The lowest rents for one bedroom properties is currently £35.18. This is going to increase in four years to £52 a week. That’s a 48% increase, which I think is a considerable amount for four years.”
Convener Donald Morrison said that tenants’ groups consulted by the council were in favour of the changes and added that there were only 10 one-bedroom properties on the low weekly rate of £35.18 and three of them were currently lying vacant.
Councillor Iain Gaul added: “I have fought against the ‘bedroom tax’ at every opportunity and today’s suggestion that this is a bedroom tax is disingenuous and I’m very disappointed at that.”
Around 7,800 council properties will experience an increase in their rent by the changes. Tenants paying the top band of rent will see rates freeze for four years.
Tenants of new three-bedroom “energy efficient” homes will see rises of around 8% in place by 2017.
Mr Morrison added: “It will deliver a much fairer system, but at the same time allow us to continue investing in our housing stock so that we can go on improving tenants’ homes in line with their aspirations and allow us to continue to build much needed new homes.
“Rents will be based on four things only: type (whether it’s a house or a flat), size (the number of bedrooms), whether existing or new supply and, for the next four years, the lower inflation rate of CPI, and that is a good thing in the current climate.”
The committee agreed to ask for a progress report in a year’s time that contained a plan to support the tenants who will see the biggest rent increases.