The decision will support major investment in existing council homes, help meet national energy efficiency requirements, and enable the development of additional affordable housing across the county. The strategy will come into effect from 1 April 2026.

The Housing Revenue Account (HRA) is funded entirely by tenant rent and is used to manage, maintain and improve council homes. As of January 2026, Midlothian Council owns 7,478 homes and 1,267 garages and lock‑ups, generating rental income of just over £36.2m in 2024/25.

Demand for affordable housing remains high, with 6,514 households currently on the council’s waiting lists, including many in urgent need. To address this, the most recent Strategic Housing Investment Plan (SHIP) outlines 673 new council homes planned between 2026/27 and 2030/31.

The approved rent strategy supports:

• Continued improvement of existing housing stock
• Delivery of national energy efficiency standards (EESSH and EESSH2)
• Completion of Phase 3–5 new build programmes already underway
• Investment in additional sites identified in the most recent Strategic Housing Investment Plan (SHIP)

The council carried out a comprehensive consultation between 3 November - 12 December 2025. This included an online survey, paper surveys and local drop‑in events. A total of 709 valid responses were received.

During the consultation, tenants and applicants were asked to choose between six rent options, ranging from 4.77% to 5.84%.

• 29% supported the highest increase (5.84%) to fund the most new homes
• 28% supported the lowest increase (4.77%)
• 10% supported the mid option (5.42%)

The agreed 5.42% increase represents an intermediate option. Even with the agreed increase, average rents are projected to remain below 30% of gross household income, which is the generally accepted threshold for affordability.

Midlothian cabinet member for housing, Cllr Stuart McKenzie, said: “This rent strategy ensures we can continue to invest in our existing housing stock while delivering the new council housing that is needed in Midlothian. We are grateful to everyone who took part in the consultation, and their feedback has been central to shaping this balanced and sustainable approach.”

The rent setting comes as the local authority welcomed the results of the 2025 Tenant Satisfaction Survey (TSS), which show continued improvement in how tenants rate our housing services.

Tenant satisfaction has increased to 82.1%, up from the previous survey carried out in 2022. Midlothian’s performance also remains above the Scottish social housing average of 81.2%.

The survey forms a key part of the council’s landlord responsibilities and provides crucial evidence to the Scottish Housing Regulator  - as part of the Annual Return of the Charter. It supports the council in meeting its statutory duty to monitor tenant satisfaction and ensures compliance with equality requirements by capturing data across protected groups.

Survey results show that tenants continue to value the quality of their homes, neighbourhood management and the professionalism of housing staff.

Key findings include:

• Quality of Homes: 85.3% of tenants are satisfied with the quality of their home - above the Scottish average of 80.5%.
• Neighbourhood Management: 85.3% satisfaction, demonstrating strong performance well above the sector average of 79.47%.
• Repairs and Maintenance: Satisfaction increased to 79.1%, reflecting continued success in maintaining safe, warm and well‑maintained homes.
• Staff Conduct: The highest scoring measure—88.6%—shows tenants feel staff are respectful and fair.
• Rent: Tenants generally feel rent levels represent good value for money in relation to the quality of housing services received and  ongoing cost‑of‑living pressures. 

Cllr Stuart McKenzie added: “The Tenant Satisfaction Survey is a really valuable tool because it gives us honest insight into our tenant’s experiences and helps shape how we plan and improve our services for the future. I want to thank every tenant who shared their views with us in this survey. Your voices matter and guides the way we deliver our housing services.”