Highland Council Rents To Rise By 8% - The Biggest Rise for 10 years

14th February 2025

An 8% rent increase has been agreed for council homes in 2025/26, in order to meet increasing costs and the need to provide future housing options while keeping rent affordable for tenants.

An attempt by a group of councillors to keep he rise to 6 % was voted down by the SNP led administration.

The administration maintained Highland Council rents remain well below the national average for social landlords and significantly below private rented sector rents. The average Highland Council rent on a 52-week rental charge basis for 2024/25 is £82.84 per week, compared to the average of £98.99 per week for all Council and Housing Association landlords.

Cllr Glynis Campbell Sinclair, Housing and Property Chair said: "It's important that we consider the impacts involved when examining options for rent increases and that our approach is a balanced one. A key part of this decision-making process is consulting directly with our tenants to learn more on how an increase may impact them and also what their priorities are for the service we are currently delivering."

Feedback from this year's tenant consultation has prioritised investment in the current estate such as cyclical maintenance, grounds maintenance and energy efficiency works, including new windows and doors and insulation. However, services are almost exclusively funded through income received from rents and the service charges paid by Council house tenants. The Council must therefore balance the required expenses against the expected income to be able to effectively deliver on the priorities vocalised by tenants.

Councillor Campbell Sinclair said: "As voiced by tenants, the change to council rents will be invested in housing stock on improvements like new windows and insulation. This will not only benefit tenants financially with the potential for reduced energy bills but also health wise with warmer, well insulated properties."

She continued: "The Council also appreciates and understands the challenges facing tenants related to the cost of living. Our housing and welfare teams work closely together to deliver support to tenants who need it most, and I would encourage anyone who may be struggling to reach out to them."

Some councillors pointed out that tenants also face increased water charges and shortly a big increase in council tax for 2025/26.

Further details on help with the cost of living can be found on the Council's website - https://www.highland.gov.uk/costofliving