A report to the council's housing, Dundee Contract Services and environment services committee recommends approval of amendments to the current system.
The recommendations are being made as a result of comments from the Scottish Housing Regulator following an inspection of the council's housing services and from improvements highlighted through best practice.
Committee convener Councillor Jimmy Black said: "This is a very positive move that should help people looking for a council house to rent and for existing tenants who need to move, perhaps because they are overcrowded.
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"One of the major benefits of the proposed new policy is that families should find it easier to get a council house. The current policy means that children of different sexes cannot share a bedroom, regardless of age. The new proposal would be relaxed to allow the sharing of a bedroom up until one child reaches eight.
"This should make it easier for us to find a suitable home for families because there will be more choice of properties for them. The points system is also set to be changed to help overcrowding so that people who are looking for a home with one additional bedroom would get 40 points instead of the current 20."
The report to committee highlights a number of other proposals that are intended to improve the letting system. They include additional help for Armed Forces personnel seeking accommodation, better provision for people in social need, including child protection issues and no automatic cancellation of applications from people rehoused by other landlords.
Councillor Black added: "I'm particularly pleased that we are making it easier for people in the Armed Forces to apply for council housing up to nine months before they leave the Services. The idea is to provide enough time to arrange an orderly return to civilian life, and of course a house is a very important part of that."
(GK/BMcC)
