The increase, which will be effective from 21 March 2024 means tenants will see an average increase of less than £3.70 per week over the coming year.
The rise takes into account feedback from tenants received during a recent rent setting consultation.
Over the last three years, rents were increased each year by just 1.5% and in 2023/24, this was the lowest increase among Scottish local authorities (excluding stock transfer authorities).
The 4.5% increase means the Council's housing capital investment programme can continue, with a proposed spend of almost £200 million over the next five years. Around 2,800 properties will be modernised, external fabric upgrade work will continue, as well as the window replacement programme, and other measures to improve the energy and thermal efficiency of properties within the existing housing stock. A programme of new build housing will also continue, which will increase the supply of affordable housing.
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Councillor Martin Kilbride, Buildings, Housing and Environment Portfolio Holder for South Ayrshire Council said: "All Councils are making difficult decisions on rent levels, and we're all dealing with rising costs to deliver housing services and to repair and improve housing.
"Although the rent increase for the next three years is higher than that previously set, it is needed to allow us to continue to repair and improve our housing stock and deliver on the commitments previously agreed with our tenants, while also increasing the supply of housing in South Ayrshire.
"I would encourage any tenant who is struggling to make their rent payments to contact our Housing Service. Officers will be able to provide information and advice and consider if any further help is available."
