Despite the rise, it is still one of the lowest rates in Scotland and remains 10% below the national average.
The additional revenue will be spent on constructing a further 150 new homes as part of the Building for the Future programme. It now means some 1,150 new homes will be built by 2020, with the extra investment bringing a £20m boost to the local economy.
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With the latest increase, the local authority has said the average rent will be an additional £1.10 each week.
Other moves include:
• An additional £1.376m to accelerate the upgrade programme of single to double glazing
• The creation of a one-off contingency of £1m to provide an additional safety net for tenants affected by the UK Government's welfare reforms
• A 2% rental increase for lock-ups and garages.
Commenting, Councillor Sam Love, Convener of Housing and Social Work Services, said: "Once again we have been able to deliver for hard-pressed tenants. By limiting our rent increase to just 2% we can make sure that we maintain the balance between maintaining our existing homes, building new homes and keeping the pressure off people in tough times."
(JP/MH)
