Controversial inflation-busting rent hikes were agreed by Perth and Kinross Council.
The local residents’ and tenants’ federation said the 4.2% increase is “far too high” in the prolonged economic crisis.
But councillors agreed that the money, which will be used to pay for upgrade programmes and new social housing, is essential to the authority’s future plans.
From April, rents will increase by £2.41 per week, on average, giving an average weekly rent of £59.77. The rise will cover lock-ups and garage sites, travelling sites and temporary accommodation units.
The council’s five-year, £38.5 million capital investment programme in its housing stock includes an ongoing programme to replace kitchens, bathrooms, heating systems and glazing, as well as providing insulation.
As well as an inflationary rise of 2.2%, the increase covers an additional 1% for improvements and 1% to help fund new-build council housing.
The sum was agreed at Wednesday’s meeting of the housing and health committee.
David Burke, the council executive director of housing, said: “Our business plan is for 25 years.
“If there is no increase reflecting inflation, that would be unaffordable pretty quickly. If there is an increase by inflation alone, we would be going against the desires of our tenants to have properties modernised and to build new houses for those without homes in our community, and breach the social responsibility charter as a landlord.
“Our level of rent compares very favourably nationally. We are 11th cheapest in Scotland and below the national average.”
Councillor Dave Doogan, convener of the housing and health committee, said: “These are difficult economic times and we see benefits cut and wages stationary and prices rising.
“This is not a happy mix, but we have a responsibility to tenants to have them living in suitable accommodation which they can afford to heat and in which their children can grow up in a healthy environment.
“There are an awful lot of people who are tenants of this council who are not enamoured of planned rises but are tremendously pleased with the house they are living in and we can’t get one without the other.”
Gerald Lowe, secretary of Perth and Kinross Residents and Tenants Association, said: “We feel it is far too high in the current economic crisis.
“Pensions and benefits are being cut down and the income through wages is also down. So the income is not there to meet this increase in rents.
“Under normal circumstances, if everything was great, then OK. But in the current economic crisis, no.”
The committee was also told a full review of council-owned garages and lock-ups across Perth and Kinross is set to be carried out, which could see the authority relinquish its hold on the increasingly dilapidated sites.