Scottish government to finally end emergency rent cap

Scottish government to finally end emergency rent cap

0:02 AM, 26th January 2024, About 3 months ago 2

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The Scottish government has announced the end of the emergency rent cap.

Introduced in 2022, the Cost of Living (Tenant Protection) (Scotland) Act, aimed to protect tenants from rent increases and ban evictions.

The Scottish Parliament has confirmed from the 1st of April 2024, the legislation will no longer apply but one organisation claims the rent cap has done more harm than good.

Open market rate

The changes will allow rent hikes of 6% or lower provided the total rent is not more than market value.

The Scottish government said any tenant who wishes to dispute a rent increase notice can apply for rent adjudication. In such cases, Rent Service Scotland or the First-tier Tribunal will set rent based on the lowest of the following three figures:

  • the open market rate
  • the rent requested by the landlord
  • and a comparator based on the difference between the market rate and current rent

Protecting tenants across Scotland

Tenants’ rights, Minister Patrick Harvie, said: “Our emergency legislation has led the way in the UK in capping in-tenancy rent increases, protecting tenants across Scotland from the worst impacts of the cost-of-living crisis.

“However, Parliament set a final deadline for these temporary protections to come to an end from 1st April 2024.

“From 1st April we are proposing temporary changes to the way rents are decided when tenants challenge a rent increase to provide a level of protection for private tenants which remains far greater than anywhere else in the UK.

“It will also enable landlords to react to an increase in costs and reinvest in our private rented sector.”

Rent freeze exacerbated Scotland’s housing crisis

However, the Scottish Association of Landlords (SAL) says the damage has already been done in Scotland.

John Blackwood, chief executive of the SAL, said: “While the Scottish government has finally recognised the need and benefits of landlords investing in their properties, their actions and rhetoric to date have already significantly harmed the ability and desire for many to do so.”

“The rent freeze exacerbated Scotland’s housing crisis, making rented properties no longer viable for many landlords who have chosen to sell.

“This has decreased supply and only increased costs for tenants and means the Scottish government has a long way to go to rebuild confidence and secure the kind of investment that is needed to help solve Scotland’s housing emergency.”

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Concerned landlord

11:46 AM, 26th January 2024, About 3 months ago

Terrific, so because Housing Benefit did not increase and i kept my promise to only take rent based on HB I have kept my tenants rent for a 2 bedroom property at £500pcm despite increased costs to me and similar properties nearby renting for £750+. Now HB for a 2 bed property is increasing to £650pcm (at last), but I can only raise rent by 12% to £560. So I get £60 and tenant gets an extra £90 in UC.
Now I may have to consider increasing rent as much as I am allowed, as often as I am allowed regardless if this is worse for my tenants

Reluctant Landlord

15:28 PM, 26th January 2024, About 3 months ago

Reply to the comment left by Concerned landlord at 26/01/2024 - 11:46
increase at every opportunity. It must be what every LL is doing as rents are at an all time high even with rent caps so something clearly not working if the idea was to keep rents low for tenants ( SNP/Green idiots)

Far from reducing possession claims, there is now a real threat of them increasing as LL's try and either leave the PRS and sell up completely, or replenish a property with a new tenant as soon as possible, where (at the mo) you can start a fresh tenancy at the current market rate (which is currently at an all time high)

When are they lifting the possession ban?

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