Not Enough! Six per cent rent rise cap is too harsh, agents warn

The U-turn by politicians in Scotland who ended a complete rent freeze doesn’t go far enough, says Propertymark.

At the end of last week Scottish Government housing minister Patrick Harvie revealed the U-turn, claiming he had listened to the concerns of landlords and letting agents in Scotland.

In general, from April, the current rent freeze will end and private rents can rise by up to 3.0 per cent over a 12 month period. 

Landlords can also 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.  From April it will be 6.0 per cent.

However the lettings agents body Propertymark says this is not enough.

A statement over the weekend says: “Propertymark has been engaged fully in the development and implementation of the Cost of Living Act, representing our members’ views every step of the way. 

“Whilst rent cap legislation continues to create uncertainty, agents and landlords will welcome a rise to three per cent, but this is clearly not enough. 

“The bigger concern is also the SNP and Scottish Green’s desire to push on with permanent rent controls with a new Housing Bill to be produced this year. It is vital that we ensure that the residential property sector in Scotland is investible and that is what Propertymark will continue to campaign for.”

Under the new Scottish rules from April evictions will still be banned except in the limited circumstances set out in legislation and the rent cap for student accommodation will be suspended "recognising its limited impact on annual rents set on the basis of an academic year".