Fife Council tenants are set to face a rent rise of up to seven per cent.

Financial pressures – including the recent increase to Employers National Insurance contributions – is set to see a projected £7.635m shortfall for 2025/26.

Next week, councillors on the local authority's cabinet committee will be asked to approve plans to consult tenants on rent options for the coming year.

In a report to committee members, housing chief John Mills said their Housing Revenue Account (HRA) faces a "high level of financial risk" in future years.

"The rent consultation options of six per cent and seven per cent take account of the current Cost of Living pressures, proposing rents that remain below living rent levels whilst enabling a balanced budget to be maintained to reduce financial risk.

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"Any rental increase of below five per cent will create a significant budget gap which will require mitigation in order to balance the budget."

A six per cent increase on the average weekly council rent to £91.72 – £5.19 extra – while a seven per cent rise would see the new amount go up by £6.06 to £92.59.

The report added: "It is officers' opinion that a rental increase of between six per cent and seven per cent provides a balance between meeting the financial needs of the HRA and maintaining rents at an affordable level for tenants.

"An option of five per cent will require a review of further mitigations required to present a balanced budget to Council in February 2025."

Councillors will be told that around 27 per cent of council households will not claim benefits in 2025/26 so will be required to fully fund any rent increase.

"To support tenants in difficulty with their rent payment, the council has a fund of £1.2m of rent and fuel poverty support available for 2025-26," Mr Mills added.

"This support targets tenants not receiving full Housing benefit or Universal Credit housing costs, additionally supports tenants migrating onto Universal Credit and provides fuel poverty support."