Budget proposals for the 2014/15 Housing Revenue Account (HRA) and the Housing Capital Account have been approved by Aberdeen Councillors.

The move now allows the rent level for 2014/15 to be set, as well as the provisional rent levels for financial years 2015/16 and 2016/17. In turn, this allows for the setting of a capital programme for 2014/15 and provisional programmes for 2015/16 and 2016/17.

In line with previous years, the council sought the views of its tenants as to whether maintaining the rent policy at inflation plus 1% was still appropriate. Of the tenants who responded, 73% agreed with the continuation of the policy while 27% disagreed.

Based on latest figures, inflation plus 1% would mean a rent increase of 4.2% for 2014/15. However, it was agreed that during the current economic climate, many families would struggle with that increase, so it was therefore agreed that a rent increase of 3.5% per week be set for this financial year, which should be maintained over the next two financial years, subject to inflation remaining lower.

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In addition, Councillors agreed that a heating charge increase for the council's heat with rent properties will be phased in as £1.50 per week for bedsits, £2.00 per week for one-bedroomed dwellings, £2.50 per week for two-bedroomed dwellings and £3.00 per week for three-bedroomed dwellings.

To ensure the local authority can deliver the priorities for its housing stock and tenants, the budget includes a revenue contribution to the Housing Capital programme for 2014/15 of £22m. Combined with additional borrowing, this means the level of capital investment for 2014/15 will total £41.7m.

Housing and Environment Convener Councillor Neil Cooney said the Council would continue to make significant investment in its housing stock in the coming financial year. For example, some 1,300 homes are set to receive high efficiency gas heating systems, 11 multi-storey blocks will be connected to the Combined Heat and Power Scheme and 1,400 kitchens and 1,000 bathrooms will be modernised. There will also be window replacement work in 97 blocks of flats, 110 homes will be rewired and 300 houses will have security improved.

Councillor Cooney added: "We have agreed upon a robust and comprehensive plan for our housing service, which is designed to raise the standards of our stock through modernisation and meet the expectations and aspirations of residents.

"The demand for housing in the city continues to outstrip supply and this can create a heartbreaking scenario, particularly for young families.

"We as a Council continue to seek ways to enhance the availability of housing in the city and have already outlined a bold and ambitious target for new affordable housing in our strategic infrastructure plan."

(JP/IT)