An inflation-busting rent rise of over 5% has been branded “scandalous” by a Perth councillor.
A 5.1% rise was agreed this week as the housing bosses seek to maintain investment in existing stock and build new homes.
The rise is 2% above the CPI (Consumer Prices Index) inflation rate and amounts to £2.65 a week, or £135 a year.
Garage and lock-up users, temporary accommodation residents and travelling people at permanent sites, as well as council house tenants, will be hit by the rises.
The same rent rise will be applied to housing service charges such as the garden maintenance scheme, which will rise from £48 to £50.45.
The rise was approved by the housing and health committee however, it has angered veteran Labour councillor John Flynn.
He said, “A rent rise increase of 5%, rising the next five years, is totally insensitive. People are reeling with price rises and now we’re going to slap this onto them.Cold comfort”It’s cold comfort for them to suggest we are one of the lowest in Scotland, but the average wage in Perth and Kinross is much lower than other areas.”
He suggested the programme of works, including entry systems and wall insulation, could be delayed as such things are desirable, rather than vital.
He said, “I don’t think we’re listening to the people out there who are suffering and this is a massive increase, not just this year, but the next five years.
“Increase the rent to CPI only for the next three years. If it means going back to the drawing board, so be it.
“It’s scandalous the rents are going up in the climate we are in.”
He received no support from fellow councillors in his bid to stop the increase.
Committee convener Peter Barrett called the move “cautious and sensible.”
Part of the rent rise will be used to fund the construction of 18-25 council houses each year.
Plans for the next five years include £27 million of improvements such as central heating replacements, kitchen improvements, double glazing and external fabric work to existing stock.