Council rents will go up by 3%, Highland councillors agreed yesterday’s new Housing and Property committee meeting.
This would result in an increase in the average weekly council house rent from £75.38 to £77.64.
The council says a number of factors, including loan charges and maintenance have been taken into account in setting the increase.
Committee chairman Ben Thompson said: “Currently our rents are eighth lowest out of the 26 councils which retain housing and second lowest of the five main housing associations operating in the council area.
“We received extensive tenant feedback to our rent consultation and the agreed increase is supported by the majority of tenants.”
The council says the increase in rent, alongside increased housing stock, could generate £2.39m.
But opposition councillor Emma Roddick said arrears from those claiming Universal Credit could outweigh the benefits of the increase.
Ms Roddick said: “This council has been very public about the fact that massive issues with Universal Credit have contributed to the dire rent arrears situation, £2.5m at the last reporting, that we are in.
“Of council tenants currently in arrears, 2,014 are on Universal Credit. If we apply the average increase of £2.26 per week to these tenants, that is £236,685 that we might not see.
“If the council cannot guarantee that the projected increase will not be eaten up by increasing arrears then this is a false economy.”