Council leaders pledge to keep rent rises below £5 a week

Tenants in council houses will see their rents rise by an average of less than £5 a week, local authority leaders have pledged.

It comes after Scottish Government ministers reached an agreement with social landlords – such as councils and housing associations – that rent rises should remain below inflation for the next financial year.

Emergency legislation passed by Holyrood means rents have been frozen until the end of March 2023, with decisions to be made in the coming weeks over whether the freeze will continue to apply to the private rental sector after that.

Maureen Chalmers, community wellbeing spokeswoman at local government body Colsa, confirmed that rent rises on gypsy traveller sites would also be limited.

She said: “Council leaders recognise the severe financial crisis many of our tenants and households are facing and have acted decisively to provide some assurance, despite the financial challenges Scotland’s councils face.

“Leaders recognise that the very high rates of inflation around the costs of heating and food disproportionately affect those on lower incomes and are acutely aware of the proportion of individuals’ income that is spent on accommodation in the rented sector and that this can vary considerably.”

She said local government leaders in areas which still have council housing will “seek to reach agreement with tenants over any increase in rents for the year 2023-24”.

But she added: “During these difficult times, as providers of social housing and gypsy/traveller pitch or site provision, we intend to keep the rental and fee increases to an average of less than £5 a week across the country.”

Tenants’ rights minister Patrick Harvie said by announcing the move now, ministers hope to give those who rent in the social housing sector “confidence that any rent increase will be well below inflation”.

Mr Harvie said: “Our emergency legislation has given people – whether they rent in the private or social rented sector – reassurance within their current tenancies through the worst of the winter, even as their other costs have been rising.

“We recognise the enormous pressures households are facing, and by making this announcement now we aim to give social tenants advance notice and confidence that any rent increase will be well below inflation.

“The statements of intent from the social rented sector, based on consultations with tenants, will keep rents affordable while allowing social landlords to continue investing in essential services such as home improvements and maintenance.”

Sally Thomas, chief executive of the Scottish Federation of Housing Associations, said: “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.”