Fife Council has pledged to invest money generated by increasing council house rent rates into continuing to provide warm, safe, secure and affordable homes.

An increase of 3% for council house tenants in 2017/18 was unanimously agreed by councillors during the budget meeting on Thursday.

The decision was supported by tenants who were consulted on the proposals at last year’s Tenant’s Gathering and through a survey in the ‘Down Your Street’ newsletter.

According to the local authority, council housing rent in Fife is around 3.5% below the Scottish average and up to 19% lower than registered housing landlords.

Cllr Judy Hamilton, the council’s executive spokesperson for housing and building services, said that the increase will make a positive contribution to the fight against poverty and a fairer Fife.

She said: “The Housing Revenue Account (HRA) gives us the opportunity to control our own income and by talking to residents we can decide – together - on our priorities.

“I’ve been talking to tenants around Fife at a range of events and they’re willing to support a modest rent increase, which will add £1.97 a week to the average property rent, to support growth and improvement. We all agree that access to more, better and secure affordable housing is critical.

“Fife is the highest investing local authority in Scotland with over three quarters of our rental income invested back into housing.

“This year we’re delivering new homes from Anstruther to Saline and we’re the largest developer of social housing in the United Kingdom. Our work with partners on the local house building program has contributed over £200m to the local economy, creating jobs and apprenticeships as well as homes.

“As well as helping record numbers of homeless people into housing, we’re tackling outdated housing and regenerating and rebuilding communities. We’re working to reduce fuel poverty and we’re future proofing our housing - making more homes accessible to those with disabilities and building new care villages.”

Rents on council lock-ups will be frozen to allow a full review of their condition and an improvement plan to be put in place over the next year.