The increase, which will take the average weekly rent above £80 for the first time, was described as “absolutely necessary” as a special communities committee rubber-stamped the proposal on Tuesday.

The rise was the lowest of four options – from 6.7% to 8.2% – put out to consultation this year.

Just 3% of the council’s tenants responded to the rent survey, but 80% of those backed the agreed increase.

Councillor Kenny Braes said the increase was a sensible one.

“6.7% is affordable to our tenants and we believe it’s absolutely necessary,” he added.

“We have had several years of rampant inflation. But we have held previous years’ increases below the rate of inflation.

“We really have to catch up now. Crucially it means our prudential borrowing is affordable and that’s an absolute requirement.”

Councillor David Cheape said: “Going forward we have to have realistic rents. It’s absolutely essential for our future development.”

The committee was also told that the collapse of north-east builder Stewart Milne will not impact the local authority’s new housing strategy.

The Aberdeen-based developer, which plunged into administration last month, had live sites include Monarch’s Rise in Arbroath.

The council has been buying ‘off-the-shelf’ properties to add to its stock of more than 7,500 homes.

But councillors were told Stewart Milne acquisitions were not part of the area’s strategic housing investment plan.