Councillors will be asked to approve a 6.5% rent increase for Perth and Kinross Council tenants next week, which will fund new council house purchases and faster repairs for tenants.
The proposal will be considered when the Housing and Social Wellbeing Committee meets on Wednesday, 21 January.
The proposed changes would result in an average weekly rent increase of £4.78 per week, giving an average rent of £84.52 per week based on 52 weeks.
Perth and Kinross would maintain the fourth lowest council rent in Scotland, £8.71 below the projected Scottish local authority average.
The increase would provide enhanced service levels for tenants, and address financial pressures faced by the Council's Housing Revenue Account (HRA) - the ring-fenced pot of money paid to the Council through rents used exclusively to pay for housing services.
The rise will mean £300,000 is available to help bring empty properties back into use more quickly, £200,000 to improve the response time for repairs and provide £40,000 to pay for a handyperson to support older tenants in their homes.
The proposed rent increases would cover significant cost pressures, including:
- Nationally agreed pay increases for our staff
- Adjustment to Bad & Doubtful debt provision.
- ·Loan charges - rising interest rates are having a major impact on current and future costs equating to a pressure of £4.9m over 5 years
- Implementation of Scottish Government policies, such as climate change obligations and carrying out electrical checks on all our properties
For the eighth consecutive year, tenants had the opportunity to vote on three different rent increase options, based on their priorities for investment.
The proposed rises were 6.5%, 7.5% and 8.5%.
Just under 3,000 tenants responded to the consultation. Proposed rent increases were also discussed with tenants at in-person events such as the Tenants' Conference.
The majority - 72.4% - preferred a rise of 6.5%. Just over a fifth of respondents (21%) said they would prefer a rise of 7.5% and just 6.7% said their preference was for an 8.5% rise.
The proposed 6.5% increase will fund:
- £25 million to fund the buyback programme over the next five years with an aim of adding at least 50 properties to the Council's portfolio each year
- £300,000 to help prepare empty properties more quickly using external contractors
- £69,000 to pay for staff to plan and manage repairs for empty homes
- £200,000 to speed up the response time for repairs for tenants
- £86,000 for fire safety remedial work
- £75,000 to ensure all homes have Energy Performance Certificates
- £150,000 for digital, financial and social inclusion projects.
- £40,000 for a handyperson to help elderly tenants
Housing and Social Wellbeing Convener Councillor Tom McEwan,said: "Despite rising energy costs, increased inflation and interest rates, the Council is committed to maintaining and improving tenants' homes.
"We work throughout the year in partnership with our tenants to learn what kind of housing service they need and want.
"We are committed to giving tenants a voice and I am pleased so many responded to the consultation.
"It is obvious the Cost of Living crisis is being felt by many of our tenants. However, the proposed 6.5% increase will allow us to make important investments that not only improve the condition of our homes, but also allow us to purchase more properties, helping more residents access quality, affordable homes.
"Our Affordability Model shows that our rents are, on average, lower than neighbouring local authorities and that 86% of our tenants could afford our proposed rents based on their income alone, without considering any housing benefit they receive. For those who are struggling, we continue to offer a range of support options including financial support through the Tenancy Sustainment Fund.
"This 6.5% increase means 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. We would also be the most affordable social housing option in Perth and Kinross."
If the committee approves the proposed rent increase, it will come into effect from 6 April 2026.
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