Members of the local authority’s neighbourhood regeneration, housing and estate management committee will be told that, after a robust review and realignment to ensure the housing budget accurately reflects the actual cost of service delivery, £4.735m more will be needed in 2026/27.

The committee will be asked to approve discussions with tenants on proposed annual increases that could range from an average of £7.28 to £7.74 per week.

During the two-month consultation, as many tenants as possible will be encouraged to share their views on the three options before a report is prepared and considered in January.

The proposed rent increases account for an agreed pay award to staff in 2026/27 of 3.5%, price inflation on services and materials and the growing cost of delivering repairs and re-lets.

Kevin Cordell, committee convener, said: “For many years we have offered tenants a balanced choice between services remaining at the same high standard they have now or giving the council additional resources to spend more on the things tenants have told us that they want, and that is still the case.

“But to be able to do this in a way that delivers strong communities where people feel empowered, safe, and proud to live needs a good supply of warm, easy to heat homes.

“That does not come cheap, and this year when the figures were being worked out and prices continue to rise, we were extremely conscious of striking that difficult balance, not just for the many hard-pressed Dundonians, but also for increasingly stretched council finances.

“That is why, this year more than most, we really want to encourage as many tenants as possible to take part and make their voices heard on which rent increase proposal they prefer.

“It is worth pointing out that in the past five years, Dundee City Council house rents have increased by 14%, compared with an average rise of 17.5% for council rent in Scotland. Over the same period, Registered Social Landlord rents across the country have increased by around 20% and 44% in the Private Rented Sector.

“Renting a council house in Dundee may be going to be a bit more expensive, but it still offers really good value for money.”

As well as using as many ways as possible of gauging tenants’ opinions including face-to-face engagement, social media and continued collaboration with Dundee Federation of Tenants Association and registered tenants’ organisations; information will also be made available about the support services available for people affected by the cost-of-living crisis.

The neighbourhood resources, housing and estate management committee meets on October 27.