Politicians in the Scottish Parliament have backed a controversial cap which means rent rises for private tenants mid-tenancy cannot exceed 3.0 per cent.
There will also be a continuation of a current - and presumably temporary - eviction ban imposed on private landlords.
According to a statement from the Scottish Government, run through an informal alliance of the Scottish National Party and the Green Party, if a private landlord chooses to increase a tenant’s rent mid-tenancy, the increase will be capped at 3.0 per cent - private landlords will alternatively be able to apply for a rent increase of up to 6.0 per cent :to help cover certain increases in costs in defined and limited circumstances.”
The statement continues: “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, introduced last autumn when politicians used the terms “temporary” and “emergency” to describe their need, will now last until September 30 - with politicians saying they have the option to extend for another six-month period if required.
However, 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.
Green Party activist and Housing Minister Patrick Harvie says: “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 3.0 per cent 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.”
Landlords can apply to Rent Service Scotland 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 3.0 per cent of total rent but from April 1 the limit will be increased to 6.0 per cent.
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This is old news. I'm in Scotland and currently have tenants who have stayed in my property beyond their notice to leave date. My hands are tied on this one.. I can do nothing about it and this is one of the main reasons I'm sellimg my portfolio. I have another one on the market and will continue this trend until they've all sold. Invest in Scotlands buy to let..... No thanks!!
I now only let to students since the disastrous SNP legislation and so usually have new tenancy agreements every June which allows me to increase rents to market rates.
I will never again leave rents unchanged for continuing tenants so Scottish tenants can thank the SNP for higher rents and shortage of rental properties, the opposite of what they claim to be doing!
They will keep extending this forever 😱 the landlords in Scotland have my deepest sympathies. I fully understand why you’re all getting out.
“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 3.0 per cent from next month, " So where is natural justice? Hit landlords, but not mortgage providers, supermarkets, power companies, etc.
I'm a Scottish landlord and I get the sentiment behind it but having a rent cap and eviction ban in place at the same has led to some tenants think they can stop paying rent. There's already enough interference with this government impacting us as business owners.
The analogy that I arrived at while speaking with other landlords was it's like telling tesco they can't increase prices while simultaneously telling them that they also can't prosecute shop lifters.
When is a rent cap not a rent cap? When you can raise the rent by 3% - about my usual annual rent increase!
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