Scottish rents soar despite rent cap law

Scottish rents soar despite rent cap law

0:03 AM, 18th January 2024, About 3 months ago 2

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The Cost of Living (Tenant Protection) (Scotland) Act 2022, which aimed to protect tenants from excessive rent increases, has failed to prevent new rents from skyrocketing in Scotland.

According to Citylets, a leading lettings portal, new rents have risen by double digits for the fifth quarter in a row, reaching an average of £1,097.

However, the data reveals a mixed picture across Scotland’s main cities.

While the central belt saw a slowdown in rent growth, which may offer some relief to tenants, Aberdeen experienced the highest annual increase of almost 10%, which may benefit landlords who have suffered from low rents since the financial crisis.

Rents have continued to rise steeply

The firm’s managing director, Thomas Ashdown, said: “Rents in the open market of the Scottish private rented sector have continued to rise steeply right through to the end of 2023 capping a unique year of sustained, unprecedented rental price inflation.

“That this occurred during a period of emergency legislation is far from coincidental, however well intended.”

He added: “As we enter 2024, the central belt has seen its rate of growth ease which will be welcome news to tenants.

“However, all residents await with bated breath what 2024 will bring; a year in which it will be a case of out with the old and in with the new as regards further temporary legislation.”

Edinburgh and Glasgow saw single digit increases

Citylets also says that Edinburgh and Glasgow saw single digit increases for the first time in two years, at 9.7% and 6.1% respectively.

The Scottish private rented sector (PRS) is set to undergo more changes in 2024, as the emergency tenant protection law expires.

However, new temporary measures are expected to keep rents under control, by limiting the amount that landlords can raise rents for tenants who are paying below the market rate.

Also, the Scottish government is expected to announce its plans for full market rent controls this year, which could have a significant impact on the supply and demand of rental properties.


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Comments

Cider Drinker

16:08 PM, 18th January 2024, About 3 months ago

I think this should read…

SCOTTISH RENTS SOAR BECAUSE OF RENT CAP LAW.

Landlords threatened with rent caps choose to increase rents when they may not have previously.

David100

10:10 AM, 20th January 2024, About 3 months ago

The Scottish Government are trying to socialise rents, in a PRIVATE rented sector. The two are incompatible. It has to be one or the other.

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