District council tenants in Stamford, Bourne and the Deepings will see their rents rise this year.
South Kesteven’s 6,095 council house tenants will see their rents rise by an average 5.13 per cent - the second lowest increase for four years.
This means the average weekly rent in the district will be £78.13 from April.
The lowest rent will be £52.24 and the highest will be £112.77.
Garage rents and service charges are also set to go up by 3.2 per cent.
The planned increases have been shared and discussed with the Service Review Group of SKDC tenants.
Portfolio holder for good housing, Terl Bryant (Con), was pleased that the increase had been kept low despite the council’s ambitious building and improvement programme.
“A change in government policy on how council housing is financed has meant that we have been able to make a start on building new council homes for the first time in more than a decade.”
He said improvement work, including building 24 new council homes in Stamford and nine in Grantham at a cost of £3m, was underway.
He said: “We very much want to continue this work in years to come and are reviewing the extent to which we will be able to build more homes and make the best use of our land and property assets to maximise the availability of affordable housing.”
A total of £4.9m has been allocated to an upgrade of the existing properties, which will take place over two years and will see 700 homes being better insulated to provide more affordable warmth for tenants.
About 300 homes will have had external wall insulation fitted by March this year.
Coun Bryant added: “All of this work has meant we have been able to employ four apprentices in our property services repairs section which in turn supports our priorities to grow the economy and develop skills.”