Council tenants are set to see their rent increase by 1.5% in the spring.
Dundee City Council’s policy and resources committee agreed to the rent increase on Monday, which will see the average council tenant having their rent payments increase by £1.17 a week from April 5.
This is expected to generate an additional £760,000 of income for the council, bringing the total expenditure on housing to £55.762 million.
Council tenants were asked whether they wanted to see rents increased by 1.5%, 1.75% or 2%.
Over 2,100 council tenants responded to the survey, with the majority voting for the lowest option.
However, according to the Accounts Commission this still means Dundee’s average council house rent is 6% lower than the Scottish average.
This also comes after the Tele obtained Dundee City Council data which revealed 5,722 council tenants were in rent arrears last year, owing nearly £3.3m.
In 2020 the council also had to write of £661,000 of bad debt, involving 646 tenants.
At the meeting the council also vowed to continue making changes to help combat climate change, including installing external wall insulation, loft insulation and cavity wall insulation, using motion sensor LED lights in communal areas and installing solar panels.
However, the environmental improvements fund will be reduced by £312,000 and this money will instead be used to fund additional borrowing costs.
And to help those tenants adversely affected by the coronavirus pandemic, an extra £50,000 has been added to the hardship fund, bringing the total fund to £500,000.
Andy Duncan from Dundee Against Austerity, which previously warned of the detrimental effect increasing rent would cause, welcomed this news on the hardship fund.
He said: “There are a lot of people in a precarious situation so any extra money is good for tenants and people in need.
“Before the hardship fund was completely spent in a very short space of time with so many people applying for it.
“There is no easy fix and the aftermath of this pandemic will go on for years and years.
“The situation is that bad here in Dundee people can’t take any more austerity, it keeps piling on and something has got to give.”
At the meeting, the council also agreed provisional housing budgets for 2022/23 and 2023/24.
These provisional budgets would see gross expenditure on housing increasing to £57.282m by 2023/24 with staff costs increasing by around £200,000 and the cost of repairs and maintenance going up by around £500,000.
At Monday night’s meeting, council leader John Alexander also praised council housing staff for their efforts in carrying out the survey of tenants during the coronavirus outbreak.