Generation Rent claims there’s been an eightfold rise in tenants disputing rent rises – and much of that is down to politicians I. Scotland s imposing temporary rent caps.
In April 2024, the Scottish Government brought in restrictions, which capped the amount landlords could hike the rent on their tenants to a maximum of 12%, and tapered based on the size of the increase.
These temporary restrictions on rent increases in the private rented sector ended this week with Rent Service Scotland now using open market rents to determine rent tribunal cases.
Analysis by Generation Rent activists found 899 applications have been made since the temporary restrictions were introduced in April 2024, with 290 households (32%) seeing their rent rise limited to the maximum of 12%.
There were just 106 cases in the 12 months to September 2022, the last time open market rents were used as the baseline by Rent Service Scotland.
The group’s deputy chief executive, Dan Wilson Craw, says: “High rents are already pulling many renters in Scotland and their families into poverty. The protections over the past few years have been a lifeline and their removal leaves renters up and down the country vulnerable to unaffordable rent hikes that could force them out of their homes.
“We’re very concerned that landlords in Scotland will use the next two years to significantly hike the rent on their tenants before the proposed longer term rent cap becomes law.
“Renters should be able to challenge a rent increase with the knowledge that they at least can’t make their situation worse.”
The Scottish Government is currently legislating to bring in a permanent rent cap through the Scottish Housing Bill. However, the cap, which will give local authorities the power to cap rent increases to the Consumer Price Index +1% at a maximum of 6%, will not come into force until sometime in 2027.
The removal of the temporary restrictions means that Rent Service Scotland will use the local open market rent as the benchmark for determinations.
This article is taken from Landlord Today