Falkirk Council: Rents to rise by five per cent despite residents calling for smaller increase

Currently, its average rent is £74.92 per week – this will rise to £78.67.

Falkirk Council had consulted with its tenants, offering a choice between and increase of 4, 4.5 and 5 per cent and tenants had overwhelmingly backed the four per cent increase.

But by the time the decision needed to be taken, councillors were told that the five per cent rise was necessary “due to rising costs and interest rates”.

Councillor Gary Bouse, the SNP administration’s housing spokesperson said: “At the time of the consultation it was expected that there would be a continued reduction in the rate of inflation and therefore interest rates.

“That did not come to fruition and in fact the vitally important interest rate is now predicted to remain higher for longer.”

Mr Bouse pointed out that the five per cent increase, combined with the last two years increases, is more than ten per cent behind the cumulative rate of inflation over that time.

“No increase will ever be acceptable but hopefully it will be seen as understandable,” he said.

The extra money, councillors heard, will allow the level of investment that is needed to “maintain and improve its housing stock”.

Falkirk Council is landlord to approximately 16,200 tenancies and the cost of providing council housing must come from house rents and other income such as grants, rather than the council’s main budget.

Members were told that 30 per cent of council tenants currently receive Housing Benefit and a further 33 per cent receive support with Housing Costs via Universal Credit.

That means more than 10,000 tenants – 63 per cent – are protected from any rent increases.

Nevertheless, the report admits that rent arrears are currently higher than historical levels and some tenants, who are already facing rising living costs, will need help.

The report to councillors also warned that future years are also likely to need a rise of five per cent as inflation looks to remain high.