Aberdeenshire Council is cutting rent increases in recognition of the effect of current financial pressures on local residents.

Annual rent increases for council-owned property will be reined in below the level expected.

The council has changed its approach to setting of rents and charges for the next financial year, moving away from the use of the Retail Price Index, the national indicator of inflation.

The announcement was made as part of Aberdeenshire Council's annual budget setting process by the chair of the Housing and Social Work Committee Cllr Gurudeo Saluja.

In recognition of the economic situation and for the welfare of council tenants, the rent and charge increases proposed will be the lowest the council has ever set.

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Council house rents for 2009/10 will increase by 3%, resulting in an average weekly rent of £50.56 - an average increase of £1.48 per week. The current year’s Scottish average for local authorities is £50.51.

In addition, increases to heating and lighting charges for tenants in sheltered housing and temporary accommodation will be phased, meaning that a planned increase of 23% will be limited to a maximum of 10% in 2009/10.

Many other charges for housing-related services will also benefit from a reduced increase of 1%, while charges at the Greenbank Travelling Persons site in Banff will be frozen.

Councillor Saluja said: "The decision to cut the rent increases and control heating cost increases is in recognition of the need to manage and provide affordable services for our tenants and we consider this to be in their best interests at a time of economic uncertainty.

"The recently reported inspection of the council's housing service confirms the service is doing extremely well. A robust, affordable and customer focussed service is, and will continue to be, delivered to the tenants of Aberdeenshire."

The announcement comes on the back of a successful year for the Housing Service with good progress made in improving property standards for all tenants, a positive inspection of housing services by the Scottish Housing Inspectorate and recognition of its excellent work in developing a Housing Business Plan.

(GK/JM)