In 2013 councillors agreed to raise rents by 4.5 per cent over the following two years followed by a 5 per cent increase for the eight years thereafter to help fund new house building

However, a recommendation that tenants be consulted on an increase of 3.5 per cent or 4 per cent, ahead of February’s budget meeting, was approved by full council today.

The consultation will run until January 13.

Councillors were told that the housing service’s business plan could sustain investment of 50 new homes a year for the next seven years based on a 3.5 per cent rent increase or 70 new homes over the same period with a 4 per cent increase.

Moray Council said it currently has the lowest average rent level among Scottish local authorities.