Rent rises: Fife tenants braced for rents rise of up to 5%

Fife Council’s Labour administration is proposing a “necessary and appropriate” 5% rent hike to tackle a funding gap of more than £8m.

The SNP opposition – the largest single party at Fife House – wants a 3% increase, while the local authority’s housing boss said a 6.5% rise was needed to bridge the shortfall.

However, COSLA guidelines have ruled out any local increases over 5%.

In a report, John Mills, head of housing services, said: “As a result of the last four years of rental increases being below inflation and pressures arising from the current economic climate, the Housing Revenue Account (HRA) faces significant resource pressures.”

It provides the financial framework for the council’s role as housing landlord, and the budget has recently been strained by costs from inflation, staff salaries and other pressures.

There is an estimated budget gap of more than £8 million for 2023-24.

Although a rent increase of 6.5% is necessary to close the budget gap in full, proposals are capped at 5%.

A 6.5% increase would take average rents up by £5.10 per week.

A 3-5% rise equates to an average rent of between £80.84-£83.59 per week. The Fife Council Labour administration has proposed a 5% rent increase for the current year.

The SNP opposition has proposed a lesser 3% increase.

The Scottish Government rent freeze for the social sector expires at the end of this month.

A decision will be taken when councillors meet on Thursday February 23.