Tag: council tenants

Protection for tenants extended

Minister confirms intention to cap private rents at 3%

Emergency measures to protect tenants will be extended, Tenants Rights’ Minister Patrick Harvie has confirmed, with private rents capped and enforcement of evictions prevented in most cases. 

Subject to the approval of Parliament, changes to the Cost of Living (Tenant Protection) Act will mean that from 1 April 2023: 

  • If landlords choose to increase private rents they will be capped at 3%
  • The safeguard for private landlords will be amended, allowing them to apply for increases of up to 6% to help cover certain increases in costs in defined and limited circumstances
  • Enforcement of evictions will continue to be prevented for all tenants except in a number of specified circumstances
  • Increased damages for unlawful evictions of up to 36 months’ worth of rent will continue to be applicable
  • The rent cap for student accommodation will be suspended, recognising its limited impact on annual rents set on the basis of an academic year

These temporary measures are intended to be extended to 30 September, provided they remain necessary, with the option to extend for another six-month period if required. 

As announced in December 2022, the social sector rent freeze is being replaced with agreements from landlords to keep any rent increase for 2023-24 well below inflation. 

Mr Harvie said: “Our emergency legislation has helped protect tenants facing the cost of living crisis. With many households still struggling with bills, it is clear that these protections are still needed to give tenants greater confidence about their housing costs and the security of a stable home. 

“While the primary purpose of the legislation is to support tenants, I recognise that costs have been rising for landlords too. That’s why we intend to allow those in the private sector to increase rents by up to 3%, with a continued safeguard allowing them to apply for larger increases to cover specified rising costs they might be seeing as landlords.

“By allowing increases in rent – capped well below inflation and limited to once per 12 months – we can continue protecting tenants from the minority of landlords who would impose unaffordable rent hikes. 

“We will continue to carefully monitor the impacts of this legislation, working with tenants and landlords to protect them from this costs crisis.”

COUNCIL RENTS: Under the agreement on social rents for 2023-24, COSLA has committed to keeping local authority rent increases to an average of no more than £5 a week.

HOUSING ASSOCIATIONS: Members of the Scottish Federation of Housing Associations have reported planned increases averaging 6.1%.

Edinburgh appeals for emergency funding to tackle housing crisis as council considers rent freeze

The City of Edinburgh Council is to write to the Scottish and UK Governments to request emergency and long-term funding to address the scale of Edinburgh’s housing pressures.

It follows a decision taken by the Council this week (Thursday 22 September) to consider freezing tenants’ rents for a third year in a row, in response to the cost of living crisis. The Council Leader will also write to the Scottish Government requesting that the rent freeze across private and social rented homes is maintained until rent controls are in place in Edinburgh.

Moving the motion, the Housing, Homelessness and Fair Work Convener Councillor Jane Meagher described the option of another rent freeze as “a humane response to a massive debt crisis where people are facing the toughest financial squeeze of their lifetimes.”

Instead of a rent consultation, the Council will invite tenants to share views on the financial challenges they are facing in relation to the cost of living crisis – including rent, food, energy and insulation – which will involve tenants’ representatives and inform the work of the Edinburgh Partnership and Poverty Commission.

Officers have also been asked to bring a report to a meeting of the Housing Homelessness and Fair Work Committee on the implications of a rent freeze for council tenants in 2023/24, the subsequent impact of this freeze on the Housing Revenue Account over the next three years, with a detailed financial strategy.

Cllr Meagher said: “We are all in the grip of a cost of living crisis but it is our most vulnerable residents who are on the frontline. Elderly people, those with young families, residents who are ill – many tenants are already facing extreme financial hardship and are struggling at supermarket tills and with their energy bills.

“We shouldn’t need to add the unbearable burden of a rent rise to that, and we must provide a level of continuity in these uncertain times. It is a difficult decision to take, however, because the money paid by tenants in their rents pays for our Housing Service and enables us to borrow money to improve Council homes and build new affordable housing.

“With construction costs also rising – and without additional support from government – keeping rents the same will without a doubt make our newbuild programme very challenging.

“I’d like to thank Living Rents for joining our Council meeting to highlight the challenges which lie before us. Council Leader Cammy Day will now detail the scale of Edinburgh’s housing crisis to government, requesting both emergency and long-term funding to allow us to purchase and build more homes for social rent.”

Kate Campbell: Why we’re choosing to freeze rents for our council tenants

Housing, Homelessness and Fair Work Convener, Cllr Kate Campbell wrote in yesterday’s Evening News about how the council’s housing budget is managed:

The council’s housing budget is entirely ringfenced from the rest of council spending. Tenant’s rent is only spent on housing: services for council tenants, repairs, large scale upgrades to existing homes – things like new roofs or lifts or windows – and building new council homes.

Every year we set a one year budget, which includes setting rent levels for the coming year; a ten year strategy which sets investment plans for new and existing homes; and a 30 year strategy which makes sure that the HRA remains healthy and that we can afford all of the investment we want to make.

And there is a lot of investment we want to make. We’ve proposed £2.9bn of investment in council housing over the next ten years. Much of this is about building desperately needed new council homes to replace the stock we lost through the Right to Buy policy, which has sadly seen many former council homes turn into unaffordable private lets.

We’ll also invest £850m in existing homes. Energy efficiency measures are a big part, improving the quality of life for council tenants and resulting in warmer homes that are cheaper to heat.

We’ll continue with improvements inside tenant’s homes but also spend money on communal areas and the wider estates. Tenants have said they want better bin stores, playparks, community growing spaces, benches, landscaping and planting. This will make outdoor space useable, safe and bring a wealth of wellbeing benefits.

We can’t compromise our ability to make these investments. They’re crucial to the quality of life for tenants. Which is why proposing a rent freeze this year was a hard decision to make.

Due to Covid, there have been delays to construction. At points sites were completely closed, but there have also been social distancing and health and safety requirements that have slowed work down over the last two years.

So there has been an underspend. This means that although over the ten-year plan we need the additional funding we would have got from a 1.8% rent increase, we don’t need it now. We can freeze rents and not affect investment as long as it is made up from slightly higher increases in later years.

And right now we have a cost of living crisis which is hitting people on the lowest incomes the hardest.

We’ve already seen the cut of £20 a week to universal credit – a loss of over £1000 a year to many families in Edinburgh. Energy prices have rocketed, with predictions that they’ll continue to rise.

Too many people face the stark choice between feeding their families and heating their homes. And from April 2022 there will be an increase in National Insurance contributions.

And the ONS announced last week that inflation is the highest it’s been for nearly 30 years. But while overall it’s 5.4%, essentials go up by much, much more. Again, hitting people already struggling far harder.

So a rent freeze in this exceptional year feels like a difficult choice, but the right one.

It surely goes without saying that the rent freeze has nothing at all to do with the Council elections coming up in May, of course! – Ed

Council urges landlords and homeowners to get ready for new fire safety legislation

The City of Edinburgh Council is reminding all city landlords and homeowners that every home in the Scotland must comply with new fire safety legislation which will come into force early next year.

By February 2022, all Scottish homes will need to be fitted with interlinked smoke and heat alarms which talk to each other – so when one goes off, they all go off.

As Edinburgh’s biggest social landlord, the Council is currently working with its contractors to fit new interlinked smoke and heat alarms, so that every one of its 20,000 Council-owned homes meets the new legislation and is made even more fire safe.

When this work’s done in each property, the electrical contractors will also undertake an Electrical Installation Condition Report (EICR) if one has not been carried out recently.

Older residents in particular are being asked to be aware of the new fire safety legislation.

The Council’s Older People’s Champion, Councillor Catherine Fullerton, is calling on everyone who manages properties for older tenants in Edinburgh to make sure all new standards are met so everyone has the best chance of getting to safety in the event of a fire.

Cllr Fullerton said: “It’s absolutely vital that landlords and property management companies, particularly those that have a responsibility for older people within our communities, understand the new fire safety rules coming into force and act on them as quickly as possible. All properties, without exception, must be fitted with the new interlinking alarms, heat alarms and, where required, carbon monoxide detectors too.    

“I’d also urge older people or people with older relatives who own their own homes to check out the Scottish Government’s dedicated ‘Fire safety for homeowners’ webpages for more details and, if necessary, to help them to get their homes fitted with the right kind of alarms. There is also clear guidance for private and social tenants as well as new build homes.

“I’d encourage everyone to be sure they are using a Trusted Tradesperson to change their fire alarms to meet the new law – please don’t run the risk of having faulty or non-compliant ones fitted.”

A ‘Trusted Trader’ in Edinburgh can be found by using this website: 

www.trustedtrader.scot/Edinburgh/

If an older person is receiving Universal Credit, Edinburgh Care and Repair Service has been awarded funding from the Scottish Government to provide this service for free. If not, there will be a reasonable charge. 

You can telephone for further advice on 0131 337 111 or email reception@cre.scot.  

Welfare reform advice on it’s way to council tenants

Council tenants facing housing benefit changes are being contacted by the City of Edinburgh Council. Leaflets  highlighting the potential impact the new rules will have when they come into force next year are now being issued across the city. These leaflets will give helpful advice on the options tenants have to limit the financial impact of the reforms.

The biggest effect is going to be on tenants who have an unoccupied bedroom as they will receive less housing benefit from April next year. Anyone under-occupying will lose 14% of their housing benefit if they have one spare bedroom (between £13 and £15 per week) or 25% for two or more spare bedrooms (between £20 and £27 per week). Options for tenants cover areas like paying rent, moving to a smaller home, maximising income and sharing with friends, family members or lodgers.

Councillor Cammy Day, Housing leader for the City of Edinburgh Council, said: “Tenants need to know just exactly what these changes will mean to them and the potential financial impact it’s going to have. Some tenants could be faced with a 25% reduction in their housing benefit. Their rent will still have to be paid so that means they will have to make up the difference from their household income. If tenants don’t pay their rent they are at risk of losing their home. No one wants to see that happen so we are advising people to get in touch with their local housing team now to discuss the various options open to them.”