Rent increases to be capped at 6% under Scottish Government plans

Tenants living in rent control areas would see their rent rise by a maximum of 6% under proposals put forward by ministers at Holyrood.

The Scottish Government has lodged amendments to the Housing (Scotland) Bill, which sets out how rents will be capped in controlled areas.

Under the plans, rent increases in control areas would be limited to the CPI annual rate of inflation plus 1%, up to a maximum increase of 6%.

If approved by MSPs, the cap will apply both to rent increases during the term of a tenancy and in between tenancies.

Ministers would be tasked with determining which areas in Scotland should fall under control areas.

The Bill would also give tenants the right to keep pets and decorate their homes.

Tenants’ groups have welcomed the changes which come as rents have soared past wage growth in recent years.

The Scottish Conservatives, who are against the plans, have warned they could affect housebuilding and private-sector investment.

Shirley-Anne Somerville, the Social Justice Secretary, said: “Eradicating child poverty remains this Government’s top priority and having a home can make a direct contribution to achieving this.

“Ensuring families can have secure and affordable homes that meet their needs is part of our approach to tackling the housing emergency.

“These measures will also help protect tenants against a backdrop of a continuing cost-of-living crisis and rising energy costs.

“We are doing what we can with the powers that we have as we know our policies are working to improve the lives of families in Scotland.

“Scotland already has some of the strongest rights in the UK for tenants, but we want to improve the renting experience even more to create an affordable, high-quality and fair rented sector.

“We have been working closely with tenants’ organisations to develop provisions in the Housing Bill to improve renters’ rights, including a system of long-term rent controls that is fair for tenants and encourages investment in the sector.

“Our rented sector is a crucial part of tackling the housing emergency and these measures provide important certainty for tenants.”

This Government needs to focus less on protecting the interests of landlords and ensure the Housing Bill prioritises the interests of tenants so that everyone can have access to a safe, secure affordable home

Tenants’ union Living Rent welcomed parts of the Bill but said it does not go far enough.

Aditi Jehangir, chairwoman of Living Rent, said: “The in-between tenancy protections suggested by the Government are crucial. They mean that landlords will stop evicting tenants to up the rent.

“However, the rent increase formula suggested locks in increases above inflation.

“The last decade has seen rents grow completely unaffordable. Any formula that increases rents above the rate of inflation will push already struggling tenants further into poverty.

“This Government needs to focus less on protecting the interests of landlords and ensure the Housing Bill prioritises the interests of tenants so that everyone can have access to a safe, secure affordable home.”