A report to the city council’s neighbourhood services committee on January 23 will recommend the increase, the second lowest rent increase in the history of the local authority after last year’s record low of 1 per cent.

Committee convener John Alexander said in addition to maintaining the lowest rent increases on record, council investment in external wall insulation, environmental improvements and new build housing continues to increase.

He said: “We’ve had a brilliant response to our consultation with over 1700 tenants feeding in their views, with 59 per cent supporting the lowest increase, but interestingly 41 per cent going for a higher increase.

“Tenants’ views are vital and help shape the future of housing in Dundee. It’s great to see people supporting our plans to increase investment and I’m sure those supporting a higher increase, did so because they’ve seen the benefits derived in terms of external wall insulation and other improvements.

“As part of this budget, an extra £150,000 will be spent on environmental improvements - taking our budget up to £840,000, a further £3.1 million will be spent on energy efficiency measures and tackling the root cause of fuel poverty, there will be a continuation of a £250,000 hardship fund to protect those affected by welfare cuts and we’ll freeze charges for older residents in our sheltered accommodation for fourth year running.

“That is a record to be proud of and I am personally committed to continuing to drive up standards and invest in the areas that tenants want us to invest in.”

Kevin Cordell, depute convener of the neighbourhood services committee, added: “Investment is a key priority for us and we have received some very positive feedback for the proposals.

“Some direct quotes from tenants include; ‘It’s worth it if it means lots more investment in making homes and their surroundings nicer places to live’ and ‘Great to see the council taking account of tenants financial state and still trying to invest.’

“We’ve already spent more than £25m in external wall insulation, putting cash back in the pockets of nearly 3000 tenants that would have gone into their meter. We’ve created new parking in areas of the city such as at Haldane Avenue, painted fences and resurfaced paths as part of the environmental improvement budget.

“We spend around £250,000 improving our sheltered complexes every year such as improvements recently agreed at Corso Street. These are real community gains and something which tenants want to see more of which is why we have increased this budget.

“The regeneration of public sector and social housing in the city is continuing apace with developments expected to be ready this year in Derby Street, Alexander Street and Lochee. Tenants have recognised that this level of increase will allow us to continue that transformation.”