Scottish watchdog urges social landlords to prepare rent rises

Fury has erupted in Scotland as a housing watchdog has told social landlords to prepare for rent increases after the rent-freeze ends next March.

Critics say that the policy introduced by Nicola Sturgeon is now ‘meaningless’.

That’s because social landlords look set to hike rents on the day the rent freeze will end.

Currently, there’s a six-month ban on landlords imposing rent rises and evicting tenants.

The move was aimed at helping tenants deal with the cost-of-living crisis but now the Scottish Housing Regulator has informed 150 housing associations and 32 councils to plan for rent rises when they are legally allowed to.

Rent freeze in Scotland will officially end in March 2023

However, while the rent freeze in Scotland will officially end in March 2023, the Scottish Government has the power to extend it for two periods of six months.

The letter sent out by the Scottish Housing Regulator states:

“As things stand social landlords are able to increase rents from 1 April 2023, and it may be the middle of January before the Scottish Government is able to set out a definite position for 2023/24.

“We know that the process to determine rent levels, including consulting with tenants, can take a number of months.

“Given this, we advise you to proceed with the work to determine what level of rent increase you require for 2023/24, including engaging with your tenants to ensure that you understand what is important to them and what they want, and can afford, to pay for.

“We appreciate that this is challenging: the Scottish Government may extend the rent freeze or cap rent increases for 2023/24; and there may be uncertainty, or even confusion, amongst tenants about what is to happen in April. However, to not proceed could leave you in a position where you are not able to increase rents on 1 April 2023 if you are permitted to do so.”

Prospect of rents rising in Scotland

The prospect of rents rising in Scotland on the day that the rent freeze ends has not gone down well with housing campaigners.

Homeless Action Scotland told the Daily Record: “We have concerns that the Scottish Government rent freeze, which last March 2023, is meaningless.”

The Scottish Tenants Organisation told the newspaper that a rent freeze is ‘public relations spin’ with the rent of those in social housing increasing in April this year and that it was ‘unacceptable’ for tenants to face a rent rise next year when they ‘can barely afford to pay this year’s rise’.