Highland Council house rent increase debate sparks special sitting of full council in Inverness HQ; bid would lower rise from 8 to 6%, but will strip some planned insulation funding - likely meaning higher energy bills for around 130 households
A crunch meeting of Highland Council will vote this week on proposals to cut planned rent increases at the expense of energy efficiency measures that save money on people’s heating and electric bills.
Fifteen councillors have signed a proposed amendment to lower the planned eight per cent increase in council house rents for the coming financial year. If approved, its advocates argue the rise would fall to “approximately six per cent” instead.
That amendment was initially rejected at a recent meeting of the housing and property committee, with six of its members voting in favour of the amendment, but nine voting to move the original proposals of an eight per cent increase, and two deciding to abstain.
But those urging the rise be lowered to around six per cent will now get a second chance at a special meeting of the full council on Thursday.
The planned amendment, if passed, would strip £1.346 million in planned investment in energy efficiency measures and improved insulation that would have been raised directly through some of that eight per cent rise.
Under the current proposed rise of eight per cent, Highland council house tenants will face an average increase in their rents of around £7.17 per week - or of between £5.35 (bedsits) and £9.51 (four or more bedrooms) depending on their property’s size.
The rise would mean people living in bedsits, one, and two-bedroom houses would still be paying less per week than the equivalent Scottish averages for 2024/25. Three-bedroom houses, however, would see their weekly rents rise to £105.95, slightly more than the Scottish average for 2024/25 of £104.19 - although that latter figure was before any planned rent increases for the 2025/26 fiscal year are factored in. Four-bedroom properties (£118.91) were already paying more than the Scottish average (£114.78 per week) and the eight per cent rise would increase that to £128.42.
This week’s proposed amendment, which was originally lodged by Cllr Alex Graham (Inverness West; Lib-Dem) and seconded by Cllr Michael Gregson (Inverness Central; Labour), reads: “We the undersigned, being elected members of the Highland Council, hereby seek alteration of the decision of January 29 by the housing and property committee to increase council house 2025/26 rents by eight per cent by deleting expenditure line for capital investment funded from current revenue £1.346 million, relating to “additional funding for capital investment in energy efficiency and external fabric from rent increase”, and make corresponding reduction in house rents income to £69.717 million. Reducing the rent increase for 25/26 to approximately six per cent”.
Although the lower increase would mean a smaller rent rise for all council house tenants, it will likely mean higher energy bills for those living in around 130 council houses in the region. For it is understood that the planned £1.346 million would have funded the installation of new external wall insulation in an additional 50 homes, and new windows and doors on an extra 80.
When first proposing rent increases for the coming financial year, the local authority launched a public consultation exploring potential rises of eight, nine and 10 per cent - with scenarios setting out what each would likely mean in terms of generated revenue and where that money would be spent.
Depending on which option was chosen, this would have meant an extra £1.346m to £32.019m would have been raised towards its work to improve housing stock.
Under the eight per cent option, which was ultimately chosen, an extra £1.346 million is expected to be raised for that purpose.
And if that cash is pulled, then the extra 130 houses earmarked for it may not receive those proposed energy efficiency and insulation improvements in the new financial year - meaning they would miss out on any energy bill savings the improvements might have brought.
The decision on whether to stick with an eight per cent rise, or opt for a lower six per cent increase, will be decided in the meeting at the council’s headquarters in Inverness at 2pm on Thursday.
The amendment was signed by the following councillors: Mr A Graham, Mr A Baxter, Mr M Reiss, Mr R Gale, Dr M Gregson, Mr R Stewart, Mr A Christie, Mr M Baird, Mrs A MacLean, Mrs J McEwan, Mr J Edmondson, Mrs L Saggers, Mrs I MacKenzie, Mr J McGillivray, Ms M MacCallum.
