Tag: rent cap

Local Scottish Green MSP urges government to protect renters in Edinburgh

Lorna Slater, the Scottish Green MSP for Lothian, has urged the Scottish Government to support tenants by maintaining protections that are set to expire next month.  

In 2022 the then Green Minister, Patrick Harvie, introduced a temporary cap on most in-tenancy rent increases. Since the end of the cap in March 2024, there has been a temporary rent adjudication system in place, also introduced by Mr Harvie, that has kept rents down for some tenants.  

At the time, the Scottish Government said that the system was to support the transition away from the rent cap to a system of permanent rent controls and to protect tenants from excessively large rent hikes.  

The Scottish Government has said that these temporary restrictions will not be renewed at the end of next month.  

The cost of renting a two bedroom home in Edinburgh is now £1358 which is an increase of 104% since 2010. [1]  

Lorna Slater MSP said: “Rents across Edinburgh have skyrocketed. Renters have paid the price, while private landlords have lined their pockets. And whilst there is legislation on the way to introduce permanent rent controls at last, these won’t come into force until 2027.  

“Right now, renters are protected by temporary controls that were introduced by the Scottish Greens. But these protections are set to expire in a matter of weeks, exposing households across the city to extortionate rent increases.   

“Removing these protections without replacing them would create a cliff edge that risks throwing households and familiesinto financial despair.  

“If the Scottish Government is serious about supporting renters then the least they can do is extend these modest measures to help support renters through the ongoing cost of living crisis.” 

Holyrood approves 3% rent cap

Emergency protections for tenants extended

Private rent increases will be capped at 3% and restrictions will remain on enforcement of evictions under measures approved today by MSPs.

The changes to the Cost of Living (Tenant Protection) Act will mean that from 1 April 2023:

  • If a private landlord chooses to increase a tenant’s rent mid-tenancy, the increase will be capped at 3%
  • Private landlords will alternatively be able to apply for a rent increase of up to 6% to help cover certain increases in costs in defined and limited circumstances
  • Enforcement of evictions will continue to be paused for up to six months except in a number of specified circumstances
  • Increased damages for unlawful evictions of up to 36 months’ worth of rent will continue to apply

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

As previously announced, the social sector rent freeze has been replaced with agreements from landlords to keep any rent increase for 2023-24 well below inflation. The rent cap for student accommodation is to be suspended, recognising its limited impact on annual rents set on the basis of an academic year.

Tenants’ Rights Minister Patrick Harvie said: “Our emergency legislation has given tenants across the rented sector additional protection as we continue to live through these challenging and uncertain economic times.

“It is clear that many households in the private rented sector in particular continue to struggle, which is why we are capping in-tenancy rent increases in the private sector at 3% from next month, with safeguards in place recognising the effects the cost of living crisis may have on some landlords. Our restrictions on evictions will continue across all sectors, with the social sector rent cap having been replaced with voluntary agreements from landlords to keep rents affordable.

“We will continue to keep these measures under review, ensuring they remain necessary and proportionate to the challenges at hand.”

The evictions moratorium pauses enforcement of eviction actions resulting from the cost of living crisis except in a number of specified circumstances. Evictions can be delayed for a maximum of 6 months while the measures are in force.

Landlords can apply to Rent Service Scotland (RSS) to increase rent to partially cover specific costs including increased mortgage interest payments on the property they are letting, an increase in landlords’ insurance or increases in service charges paid as part of a tenancy, subject to an overall limit. This limit is currently set at 3% of total rent. From 1 April the limit will be increased to 6%. In effect this retains the ability for landlords to raise rents at a level of 3% above the cap.

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. Members of the Scottish Federation of Housing Associations and Glasgow West of Scotland Forum of Housing Associations have reported planned increases averaging 6.1%.