Council house tenants in Dundee could end up with the second lowest rent increase in the city council’s history if councillors back a consultation on the options next week.

Members of Dundee City Council’s neighbourhood services committee will be asked to approve discussions with tenants on annual increases of between 1.25 per cent and 1.75 per cent, or between 87p and £1.22 a week.

During a two month consultation period tenants will be asked to express their preference of three options, the third being 1.5 per cent or £1.05, before a report is prepared and considered by the neighbourhood services committee’s meeting in January.

Councillor John Alexander, committee convener, said: “The options could potentially result in the second lowest rent increase in the city council’s history, whilst maintaining the high quality service that our tenants expect.

“We understand and appreciate the desire of tenants to continue to see improvements in the housing stock, particularly around external wall insulation and we have committed to spending an additional £3.1m on energy efficiency improvements.

“The higher options will allow for further environmental investment in our housing areas or even more resources to tackle fuel poverty through external wall insulation - as requested by tenants throughout the year.

“For the sixth year running, our sheltered housing charge will remain static and for the fourth year in a row some charges, such as the communal cleaning and lock-up rental charges will also not be changed.

“The informed and intelligent dialogue that we have with tenants each year as part of the consultation exercise shows clearly how successful this exercise is and I look forward to that continuing.

“Tenants know why we are suggesting the increases we are, what they will get for their money and what benefits it will bring to the wider city. To put this into context, it is the second lowest rent rise that has been proposed since the city council was formed.”

As in previous years the consultation will include a number of local community events, discussions with Registered Tenants Organisations and information on the council’s website and in council offices.

The neighbourhood services committee meets on October 31.