A meeting of Full Council agreed the increase for the upcoming financial year.

Communities, Housing and Public Protection Committee convener Councillor Miranda Radley, said: “In order to ensure that we continue to provide essential housing services, we have had to increase rents due to the rising costs of goods and services.

“Our residents recognise the need for rent to increase, and we also recognise the challenges faced by people across the city in recent years. That is why we have set rent at 4.7% - below what was consulted on and at the current rate of inflation. On top of that, we have made sure support is available for those who will struggle with their rent.”

As well as rent levels, councillors approved the creation of a Rent Assistance Fund pilot, with a report on how this will work being considered at the Communities, Housing and Public Protection Committee in March 2024.

Councillor Martin Greig said: “The council is committed to providing good quality housing stock, which has also included new build properties being built across the city.

“We are investing in homes and communities to encourage more individuals and families to choose to live, work and study in Aberdeen.”

Rent must be held in an account known as the Housing Revenue Account (HRA), which is reserved to pay for costs associated with providing social housing, including repairs, improvements, housing management and building new properties.

The decision comes after a consultation was carried out in September, which proposed a rental increase of either 6.3% or 8.8%, with 40% of respondents voting for 8.8 and 60% for 6.3.

The council’s multi-year rent policy expired on 31st March, and councillors instructed that a consultation is carried out for inclusion in the 2025/26 HRA budget process.

All rental changes will take effect from Monday 1st April 2024 and changes to rent currently paid will be communicated directly to residents.