Government accused of ‘prioritising landlords’ as rent cap ends

The Scottish Government has “prioritised landlords” a tenant union has claimed as a rent cap ends on Tuesday.

Ministers announced earlier this year that the measures, which effectively capped rent increases at 12%, would be removed on April 1.

As a result, renters could be exposed to substantial increases ahead of the rent control measures in the Housing (Scotland) Bill, which will allow councils to declare rent control zones, capping costs at 1% over the rate of inflation.

The Bill is currently making its way through Holyrood, but its implementation could take until 2027.

The Government has sought to stress that private renters remain protected from above market rate rent increases, while urging them to seek a review of any rent increases.

Analysis by tenants union, Living Rent, of Scottish Government figures showed adjudications by Rent Service Scotland saw rents increase by £71 on average, while landlords proposed hikes of £154 on average.

Ruth Gilbert, the chair of the union’s national campaign, warned that the end of the measures would see tenants “plunged into further poverty” and landlords were “celebrating” the change.

“This Government has once again prioritised landlords’ vested interests over tenants’ need for affordable housing,” she added.

“It is completely irresponsible to end the measures that have offered tenants interim protections from sky high rent increases before permanent rent controls become law, and while rents continue to push people into poverty.

Without this cap, tenants are going to be hit hard by a wave of “open market” rent increases as landlords cash in following  two years of emergency protections.

“Open-market rent is completely unaffordable. It is ludicrous that this Government thinks it is a fair metric for determining rent levels.

The rent controls and protections contained in the Housing Bill will likely only come into effect in 2027.

“Until then, tenants are facing completely uncapped rents.

“This will decimate our communities, force people out of their homes and further exacerbate both homelessness and poverty.

“As we’ve seen, unregulated, out of control rents also drive high inflation.”

While Scottish Green MSP Maggie Chapman said tenants would be receiving notices of rent increases from Tuesday morning, “with little notice or chance to appeal”.

“It will be a dark day for renters, but rogue landlords will be celebrating in the knowledge that they are no longer being constrained,” she added.

“It doesn’t need to be like this. The Scottish Government can stop it.

“The support that the Scottish Greens secured can be extended, offering renters protections from the most predatory landlords.

“All parties agree that we are in a housing emergency. The last thing we should be doing is allowing rents to be increased without limit.”

A spokeswoman for the Scottish Government said: “Scotland provides renters with some of the strongest protections anywhere in the UK.

“From April 1, protections continue to be in place against rent increases above market rent for most private tenants and we would encourage tenants to make use of their right to a review of a rent increase.

“The Scottish Government has a strong track record in delivering affordable housing in Scotland, from 2007 to the end of December 2024 more than 136,000 affordable homes were delivered, with 97,000 of those for social rent.

“We know that there is a need for longer term action on rents to ensure a fairer system for tenants – that is why we are taking forward measures in the Housing Bill to support the introduction of longer-term rent control where this is needed.”