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Rent-rise proposal prompts backlash

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Proposals by the SNP administration which could see council house rents in Dundee rise by up to 5% have sparked a political row.

Liberal Democrat group leader Fraser Macpherson said tenants are facing increased rent levels that are not acceptable at a time of significant financial challenge.

Labour group housing spokesman George Regan criticised the decision to implement a rise well ahead of inflation “when poorer people are being hit from all directions.”

Consultation is being carried out ahead of an inflation-busting rise of between 4.5% and 5% for the year 2011/12.

Mr Macpherson said, “It appears that, again, the SNP is determined to increase council rents by well above inflation and I question the fairness of that at a time of significant financial pressures upon Dundee tenants.

“There are areas where the housing revenue account could make further savings and I question the need for a base budget cost increase for re-lets of over £550,000.”

When the 2010/11 increase was discussed last year, Mr Macpherson moved that it be restricted to 3%, while the SNP pushed through a 4% increase.

“I hope that this year the administration will actually listen to tenants rather than push its inflation-busting increase through,” he said.

Under the provisional proposals, the maximum weekly increase would be capped at either £3.25 or £3.50, depending on which percentage is adopted.