A major waiting list for council homes in the north-east could be tackled by raising rents for current tenants – and using the revenue to build more.
In plans going before Aberdeenshire Council’s social work and housing committee next week, councillors are being asked to back a plan to increase rents on council houses by 3.75% every year until 2019.
The local authority is arguing that this is the only way to fund the construction of further homes and tackling its huge demand for council properties.
It comes as the committee reviews its housing revenue account (HRA) business plan, which is examined every three years.
14,000 people are on the waiting list for a council house and officers are arguing the increases would give them £5million to spend on delivering 53 new council houses in the next three years.
Chairwoman of the committee, Anne Allan, said: “It is very much needed. There is a huge waiting list and, obviously, we need to build as much affordable housing as we can and this would allow us to use the money to build some.
“We need a mixture of housing for rent and affordable homes which people can purchase. The 3.75% is actually less than it has been for the last three years.
“We have to wait and see what the committee think about it. It will be discussed at the full council on February 11.”
Another option for a 4.75% increase – which would allow for 213 new homes being built – was also considered.
Head of infrastructure services at the council, Stephen Archer, said: “Higher rents will allow for more revenue to be made available for capital investment.”
He added that a consultation with residents had been carried out on the plans and the review had considered “tenants’ income levels”.
Coordinator of the Tenant Participation Promotion Team in Turriff, Ruth Fraser, said: “In an ideal world, maybe we wouldn’t want to pay any more but realistically, everything goes up.
“The more you participate, the more you have got a say on what goes on. If people reply and participate they may got what they want.
“Generally, the council is wired up to anything tenants want to see and they are always consulted on anything, especially on rents.”