Scottish government confirms increasing rents will be capped
Emergency measures have been introduced by the Scottish government in a bid to protect tenants as the cost-of-living continues to bite.
Subject to the approval of Parliament, Tenants Rights’ Minister, Patrick Harvie, has claimed private rents will be capped and evictions will be prevented in most cases, under changes to the Cost-of-Living Act.
If a Private Landlord choses to increase how much tenants pay each month, they will be capped at 3% however, the safeguard for private landlords will be amended, allowing them to apply for increases of up to 6%, to help cover certain increases in costs in defined and limited circumstances.
Across the UK, various fixed mortgage rate deals are due to end this year, with experts predicting bills will increase by thousands of pounds.
Additionally, the rent cap for students will be suspended, recognising its limited impact on annual rents set on the basis of an academic year.
Previously announced in December 2022, the social sector rent freeze is being replaced with agreements from landlords to keep any rent increases for 2023-24 below inflation rates.
The Tenants Rights’ Minister said: ‘Our emergency legislation has helped protect tenants facing the cost-of-living crisis. With many households still struggling with bills, it is clear that these protections are still needed to give tenants greater confidence about their housing costs.
‘While the primary purpose of the legislation is to support tenants, I recognise that costs have been rising for landlords too. That’s why we intend to allow those in the private sector to increase rents by up to 3%, with a continued safeguard allowing them to apply for larger increases to cover specified rising costs they might be seeing as landlords.
‘By allowing increases in rent – capped well below inflation and limited to once per 12 months – we can continue protecting tenants from the minority of landlords who would impose unaffordable rent hikes.
‘We will continue to carefully monitor the impacts of this legislation, working with tenants and landlords to protect them from this costs crisis.’
These temporary measures are intended to be expended until 30th September, if they remain necessary, with the option to extend for a further six months if required.
Photo by Paul Chambers