Charity urges Scottish government to act as private renters’ debt hits £4,000

A charity is calling for the Scottish government to do more to tackle rising rents, as private renters’ debt is on average £4,000.

Research by Citizens Advice Scotland reveals that private renters’ debt is twice that of social renters.

The charity claims rent controls alone won’t solve the housing crisis and says the Scottish government should work with the UK government to unfreeze Local Housing Allowance (LHA) rates.

Pressing need to regulate rents

According to the findings, Citizens Advice Scotland delivered the highest level of homelessness advice in five years, with almost 1000 pieces of advice provided to people experiencing homelessness, an 11% rise on last year.

The housing charity also says the cost of private renting is unaffordable for many people as the average rent debt held by private renters is £4,000.

The housing charity is calling on the UK government to unfreeze local housing allowance (LHA) rates.

The charity said in its research: “The UK government should carry out an urgent review of Local Housing Allowance (LHA) to ensure that it is in line with real rents.

“The Scottish government should establish a working group with the UK government to reform LHA while ensuring that Scottish experiences shape policy and practice.

“There is a pressing need to regulate rents to ensure affordability for renters who otherwise risk hardship and homelessness, the Scottish government must implement a robust system of rent controls as a matter of priority.”

Rent controls do more harm than good

However, as previously reported on Property118, rent controls do more harm than good.

According to Scottish government data, average rents for one-bedroom properties increased by 4.0%, or £28 per month, reaching £738 per month. Rents for two-bedroom properties rose by 3.1%, or £28 per month, reaching £921 per month.

Meanwhile, rents for three-bedroom properties increased by 1.6%, or £18 per month, reaching £1,154 per month.

However, the Scottish Association of Landlords (SAL) says the Scottish government’s rent control plans are to blame for the rise in rents.

SAL chief executive, John Blackwood, tells Property118: “With some landlords leaving the sector due to anti-investment rhetoric and more people than ever needing homes, average rents rising was sadly inevitable.

“We warned the Scottish government that this was also a foreseeable consequence of rent controls, which always pushes rents up wherever they’re tried.”

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