Temporary restrictions on rent increases in the Scottish private rented sector have led to a more than eightfold increase in renters challenging rent hikes.
Analysis by campaign group Generation Rent found that 899 applications were made since temporary restrictions were introduced in April 2024, with 290 households - or 32% - seeing their rent rise limited to the maximum of 12%.
This was a big increase in caseload, with 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 body which oversees rent setting in the country.
These temporary restrictions ended this week, and although the Scottish Government aims to bring in a permanent rent cap through the Scottish Housing Bill - which will give local authorities the power to cap rent increases to CPI +1% at a maximum of 6% -, this will not come into force until 2027.
Rent Service Scotland is now using the local open market rent as the benchmark for determinations, so rent increases could be even higher than the landlord asked for, according to Generation Rent, which is concerned that this may discourage many renters from contesting it.
However, the Scottish Association of Landlords has argued that private landlords who are already struggling with higher costs and find themselves repeatedly unable to raise rents often face the difficult decision to leave the sector.
Generation Rent’s new resource maps adjudication cases to help renters understand what rent levels are likely to be determined for their home, and whether a challenge is worthwhile.
Dan Wilson Craw, of Generation Rent, explained it is concerned that landlords in Scotland will use the next two years to significantly hike rents 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,” he added.
Tags:
Comments