0:06 AM, 1st November 2024, About a month ago 4
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The Scottish government has announced plans to cap rent increases in areas with rent controls, as part of its Housing (Scotland) Bill.
The proposed amendment would limit rent rises to the Consumer Price Index (CPI) plus 1%, with a maximum increase of 6%.
This cap would apply to both in-tenancy and between-tenancy rent increases.
In a statement, the government says the rent cap will stabilise rents and support tenants and help to tackle poverty.
It adds that the rent cap will provide ‘appropriate protection for the property rights of landlords’ and support investment.
Housing Minister Paul McLennan said: “There is a consistent view that Scotland needs a thriving private rented sector – one that offers good quality, affordable housing options and values the benefit that investment in rented property delivers.
“This announcement provides certainty for tenants and continues to encourage investment.
“Setting out the form of the rent cap in this way – with CPI as the basis – allows for a reflection of the costs to landlords of offering a property for rent whilst offering protection for tenants in terms of limiting more significant rent increases.”
He adds: “We are bringing forward a system of rent control that works for Scotland – a system that supports stabilisation of rents for tenants, whilst ensuring there can be a balanced approach that provides appropriate protection for the property rights of landlords and supports investment in the development of rented homes.”
Propertymark’s head of policy and campaigns, Timothy Douglas, said: “Whilst the Minister is beginning to recognise that landlords and investors are vital to solving the housing crisis in Scotland, and inflation-linked rent increases will support investor appetite, further changes are still needed to strengthen the legislation and give more confidence to letting agents and their landlords.
“The Bill, in its current form does nothing to address the demand for private rented property and the proposals for rent control areas, in terms of data collection, designation and reporting timescales are inconsistent.”
He added: “Furthermore, rent control measures between tenancies removes any incentive for landlords to invest or upgrade properties and the Scottish Government must reduce the tax burden on landlords to bring down the cost of renting for tenants.”
The Green Party’s equalities spokesperson, Maggie Chapman, said: “Everyone deserves a safe, warm home that gives them peace of mind and security, and we have so much more to do if we are to give tenants the rights and protections they deserve.
“Rent controls are normal in many countries – they exist across Europe and beyond.
“It is time for them to be introduced in Scotland.
“The SNP must not betray tenants or backtrack on the commitments they made three years ago.”
She adds: “By tackling sky high rents, ensuring protection from eviction, providing the rights to decorate and to keep pets, and providing greater support for victims and survivors of domestic abuse rebuilding their lives, we can build a fairer and better housing system.”
David Alexander, the chief executive of DJ Alexander Scotland, said: “This is welcome news. Everybody involved in the private rented sector (PRS) has been frustrated at the uncertainty of the Scottish government’s policy on rent controls, but this amendment offers landlords and investors a degree of hope for the future.
“Most would agree that rent increases capped at CPI+1% up to a maximum of 6% is a fair offer and would allow landlords to plan for the future with a greater degree of certainty.”
He added: “Although there is to be further consultation next year – which sounds unnecessary given how much these issues have already been discussed – this is a change which, if approved in the final stages of the Bill, should free up investment and start to resolve the current housing crisis.”
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Cider Drinker
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Sign Up12:37 PM, 1st November 2024, About a month ago
I hope they cap landlords’ costs too. Otherwise, it won’t work.
Imagine capping the cost of a loaf of bread at 70p when it costs 71p to produce and distribute it.
The loonies have taken over the asylum. Maybe that’s why we have so many asylum seekers.
Reluctant Landlord
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Sign Up13:58 PM, 3rd November 2024, About 4 weeks ago
They said rent increase caps would solve the issue after what is it now, 13 separate housing emergency dictats?
It has only made the situation worse.
How do they think capping private rents is going to help exactly?
A LL's costs are not capped.
Its like telling Tesco they can only sell apples at 10p each irrespective of the actual 15p it costs to produce it, get it to the shelves for the customer to buy. Guess what. Tesco stop selling apples.
DPT
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Sign Up15:54 PM, 3rd November 2024, About 4 weeks ago
Rent caps always lead to tenants paying more rent not less. Landlords tend to raise rents annually up to the cap even where the weren't previously planning an increase.
Reluctant Landlord
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Sign Up10:20 AM, 4th November 2024, About 4 weeks ago
Reply to the comment left by DPT at 03/11/2024 - 15:54
but if the cap still doesn't meet your costs? I know there is the capacity to go to a tribunal if this is the case for the LL but they have to show exactly why this is the case.
Are the scottish government ready for this increase in requests from landlords? My feeling is not.
Anyway why should a LL divulge this personal information? If you do not let the property as a Ltd company then this is not a business according to HMRC so why should a LL be compelled to disclose anything?
Now I see they are trying to stop rents being increased BETWEEN tenancies! WTAF?
I see more LL's just evicting the tenant rather than cow towing to the idiots in power and leaving the property empty until the reality dawns...