Private landlords should follow new ‘average rent increase’ plan

Private landlords should follow new ‘average rent increase’ plan


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Propertymark has come out in favour of private landlords being allowed to follow the example of social landlords in agreeing an ‘average’ rent rise.

Over the Christmas period, ministers in the Scottish Government reached an agreement with social landlords on below-inflation rent increases for the next financial year – this follows a rent freeze taking place until April 2023.

So for the 12 months beginning in April, social rents will rise by an average of no more than £5 a week. 

Sally Thomas, the chief executive of the Scottish Federation of Housing Associations, says this is a good deal for tenants but also allows social landlords to plan, and reduces the problems associated with an ongoing rent freeze.

She comments: “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.”

Propertymark says it wants a similar deal to be extended to the private rental sector, which is also subject to the current Scottish Government rent freeze until the spring. 

Timothy Douglas, head of policy and campaigns at Propertymark, comments: “The conversations taking place with Scottish social landlords needs to be echoed across the private rented sector. 

“But instead, we continue to see costs increase such as the new raise in [stamp duty surcharge] to six per cent. Because of this, 68 per cent of letting agents are reporting an increase in notices to sell from their landlords.

“The private rented sector houses more people than the social sector, and whilst we whole heartedly support investing in and working with the social sector, it’s aggravating to continue to see the private sector be overlooked time and time again.”

Landlord Today returns on Tuesday January 3 2023, and wishes all readers and their families a successful New Year and a well-deserved break!

 

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