The increase will come into effect on 01 April 2016.
The HA said it made the decision following 'an extensive business planning and budget setting process'.
Housing Services Manager, Andy Thomson said: "We consulted on proposals to increase rents by 0.8%, 1.3% or 1.8%. This was equivalent to the September's (RPI) rate of inflation, plus 0.5% and plus 1% respectively. We received a variety of feedback however, which prompted the Committee to think very carefully about what such a rise would mean for residents. It was also considered that inflation is also on the rise, currently at 1.2%.
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"The views of tenants were split almost evenly however, most respondents to the Association's consultation supported a rent increase of either 0.8% or 1.3%; the Committee noted that whilst many household costs continue to rise at levels greater than inflation, not all tenants had experienced an increase in their income at the same rate."
The Association added it has managed to arrange its finances in order to maintain all current services and can introduce proposed improvements to its properties without further costs.
(LM/MH)
