Despite the Scottish government’s high-profile cap on rental increases set at 3% earlier this year, rent prices in Scotland have ascended higher than those in England. Specifically, the law has not responded adequately to the needs of many renters, of which 26-year-old Catherine Sheldon is a representative. As a casualty of the increasing cost of living crisis, she believed that the 3% cap provided a degree of financial security.
Unexpectedly, Sheldon confronted a legal aberration which allowed her landlord to impose a 35% rent increase on her due to a flatmate’s decision to relocate, thereby terminating the tenancy agreement. For over two years, she resided with two friends in a three-bedroom flat in Glasgow. To continue staying there, she was faced with the necessity of accepting a rent boost from £520 to £700 per month.
Attributing the surge in rent to market trends, Sheldon’s landlord appeared to be technically correct. However, for Sheldon, the new monthly amount consumed over half of her monthly income. Despite attempts to renegotiate, Sheldon is currently planning to vacate the property due to financial constraints.
Interestingly, rental prices in Scotland’s major cities have nearly doubled in the past decade, supported by data compiled for BBC Scotland News. In a year, private rents across Scotland have grown by 6%, surpassing the last recorded figure in London, despite the emergency legislation restricting rent increases to 3%.
In response to rising living costs such as escalating energy prices, the Scottish government previously froze rent increases. However, in April, the legislation was adjusted to allow a 3% cap on hikes. Activists, however, have pointed out a loophole: when one person moves out many landlords use the opportunity to increase rents as much as they wish in shared flats. This is because the legislation pertains to tenancies, not properties.
Economist Laurie Macfarlane refers to the current rent cap as nothing more than a temporary fix to the broader housing crisis in Scotland. Meanwhile, the Scottish Association of Landlords argues that the government is not effectively working with them to seek sustainable solutions.
John Blackwood, its chief executive, mentioned that perhaps one solution could be to provide greater predictability of rent increases in the future, thereby safeguarding the business interests of landlords. He noted that due to a dearth of alternative affordable accommodations, private landlords have been compelled to house more people than anticipated, making it the only alternative for many renters.
Lastly, the Housing Minister, Paul McLennan, acknowledged the need for broader rent controls in the upcoming Housing Bill. He also expressed the desire to boost the housing supply, admitting that rent trends in London, Manchester, and Newcastle were edging upwards at a similar pace.
