Highland Council has approved an 8% rent increase, raising average rents to £96.96. Loan charges consume 43% of the budget, raising affordability concerns.
The council plans to use some funds for repairs and maintenance. These are top priorities for tenants. However, a large portion of the rent increase will cover loan payments.
The average rent before this hike was £82.84, which is below the national average of £98.99. The increase means tenants will pay about £30 more each month. Council officials say this will have a minimal impact, despite a similar rise last year.
Councillor Alex Graham suggested a smaller increase of 5.96% to ease the burden on tenants. However, this would delay important projects like insulation and double glazing for 130 homes.
Opposition leader Alasdair Christie expressed concern, saying an 8% increase is unacceptable. He noted that most people can’t expect an 8% income increase. Councillor Michael Gregson mentioned that the consultation process pushed people toward the higher increase.
Despite the concerns, the tenant representative supported the 8% hike, stating that many tenants are struggling. Council leader Raymond Bremner urged members to consider the benefits of better insulation, which could lower heating bills.
The council voted 9 to 5 in favor of the increase, with two abstentions.
