Council rent increase to be considered

Councillors will be asked to approve a 6.5% rent increase for Perth and Kinross Council tenants next week.

The proposal will be considered when the Housing and Social Wellbeing Committee meets on Wednesday, 21st January. The increase will fund new council house purchases and faster repairs for tenants.

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.

The increase would provide enhanced service levels for tenants and address financial pressures faced by the Council’s Housing Revenue Account (HRA). This is 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.

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%. 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 6.7% said their preference was for an 8.5% rise.

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 6th April 2026.