The 7.7% increase also applies to garage rents and grass cutting services. Alongside this, £200,000 will be available for service developments.

The changes come after a simplified rent setting policy was agreed in January. This sees the number of different rent levels decrease from 386 to 28 and a baseline rent level introduced.

From the choices given in the consultation, 87% of tenants indicated the 7.7% increase would be their preference, over the alternative of 11%. The 7.7% figure is in line with inflation.

The meeting also agreed expenditure of £26.2 million on, among other things, sheltered housing, repairs and maintenance, downsizing incentives and new house building.

Since last year’s budget was set the council has increased its stock by 86 properties, following the completion of new build developments in Elgin and Keith and the acquisition of 35 former MOD properties and one open market purchase in Elgin.

Two further open market acquisitions will complete by the end of March and progress has also been made in starting a further phase at Keith; planning consent for a much needed development in Aberlour has been approved and a revised specification for the development at Bilbohall in Elgin are also expected to be on site within the new financial year.

Moray Council’s chair of the housing and community safety committee, Councillor Amber Dunbar, said: “Based on this rent increase, and the revised rental structure, Moray Council rents remain the lowest amongst local authority landlords in Scotland and will continue to be affordable across the range of property types and sizes.

“Over the course of the last year our performance in relation to void properties has significantly improved, with average relet times and void rent loss reduced by over 25%. Our rent recovery levels remain amongst the highest in Scotland and a rent campaign will take place in March to further improve this position.

“Our key focus over the next year will continue to be stock improvement, with a comprehensive programme of electrical certification nearing the halfway point and a considerable programme of energy efficiency measures to be undertaken in the course of 2024/25.

“I look forward to seeing the forthcoming business plan review progressing through committee, which will also ensure the rental income is sufficient to maintain statutory requirements and meet tenant aspirations.”