Rent rise: Fife Council tenants face 5% rent rise

Councillors backed a motion from the minority Labour administration to set the increase for the next financial year. It will affect almost one third of tenants. They voted 40-31 for the increase over a 3% pitch from the SNP.

The rise comes as the local authority faces a housing revenue funding gap of more than £8m.

It had consulted tenants of a rents rise of between one 1-3%, but spiralling inflation costs meant the figure had to be raised.

Councillor Judy Hamilton, housing spokesperson, said: “It became apparent our priorities could not be delivered on the increase suggested.

“There is no doubt in my mind about the importance of providing good quality housing that is affordable, and I am also aware of the pressures people are under.

“One third of tenants will affected by the rise as they get no additional housing support or Universal Credit. There will be strong rent support with £1.5m of direct support.”

Councillor David Ross, leader of the administration, said the difference between the two proposed rises was an extra £2.5m in rent, with up to £`1.5m paid by the Treasury through benefits.

He added: “To not do that we would be handing back that money to the Treasury rather than using it to the benefit of our tenants.”

He said that less than 4% of tenants had responded in the most recent consultation - a lower figure than in previous years.

The SNP had pushed for a lower rise, branding Labour a “doom and gloom administration.”

Councillor Lesley Backhouse, who presented their case, said: “Given the double whammy of a cost of living crisis and homelessness, we need to do better. We need to keep rents as low as possible.

“When the £ in people’s pockets doesn’t cover heating costs why are we adding a burden?”

Councillor David Alexander, SNP group leader, said Labour’s plans were the “highest rent rise in a long time - and in the middle of cost of living crisis.”He added: “It is too high for same reason the Council Tax rise was too high. We are under the cosh, This is not the time to make the biggest rent rise in years.”