Landlords announce plans for average increases
Ministers have reached an agreement with social landlords on below-inflation rent increases for the next financial year.
Organisations representing social landlords have announced their members’ plans for average rent increases for 2023-24, which will keep rents significantly below private market levels.
Under the Cost of Living (Tenant Protection) Act 2022, rents are effectively frozen in the social rented sectors until 31 March 2023. Decisions on future plans for the private sector rent freeze, as well as other measures contained in the Act, will be announced in the coming weeks.
Tenants’ Rights Minister Patrick Harvie said: “Our emergency legislation has given people – whether they rent in the private or social rented sector – reassurance within their current tenancies through the worst of the winter, even as their other costs have been rising.
“We recognise the enormous pressures households are facing, and by making this announcement now we aim to give social tenants advance notice, and confidence that any rent increase will be well below inflation.
“The statements of intent from the social rented sector, based on consultations with tenants, will keep rents affordable while allowing social landlords to continue investing in essential services such as home improvements and maintenance.”
Councillor Maureen Chalmers, COSLA’s Community Wellbeing Spokesperson, said: “This is good news for Local Authority tenants from Scotland’s Council Leaders today.
“Council Leaders recognise the severe financial crisis many of our tenants and households are facing and have acted decisively to provide some assurance,despite the financial challenges Scotland’s Councils face.
“Leaders recognise that the very high rates of inflation around the costs of heating and food disproportionately affect those on lower incomes and are acutely aware of the proportion of individuals’ income that is spent on accommodation in the rented sector and that this can vary considerably.
“In balancing the wide range of competing factors, Leaders with housing stock will seek to reach agreement with tenants over any increase in rents for the year 2023 – 24. Councils consultative arrangements would normally allow them, subject to approval of local governance structures, to raise rents annually to meet rising costs.
“During these difficult times, as providers of social housing and Gypsy/Traveller pitch or site provision, we intend to keep the rental and fee increases to an average of less than £5 a week across the country.
“Collectively, whether we are directly landlords or not, we urge all landlords setting rents in 2023-24 to adopt a similar consultative approach with their tenants, many of whom will be affected by the on-going crisis.”
Sally Thomas, Chief Executive at the Scottish Federation of Housing Associations (SFHA), said: “We welcome the fact that Scottish Government has worked closely with the sector, to understand the evidence and avoid unintended consequences of this legislation, and to find a collaborative way forward.
“Investing in good quality, warm homes for social rent is crucial to tackling poverty in Scotland and protecting new and existing tenants from the increasing cost of living.”
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