Rents in Scotland ‘set to rocket’ as cap lifted – claim
Oli Sherlock, of tenant management proptech firm Goodlord, warns that rents will rise quickly as a 3% limit expires.
Both Goodlord and its sister firm Vouch say renters should be braced after a 3% limit on rent rises expired at the weekend.
A rent cap and eviction ban ended on 31 March, to be replaced with a rent arbitration scheme for one year.
After 12 months, landlords will then be able to return their rent prices to the open market value, with tenants able to apply to Rent Service Scotland or to the first-tier tribunal if they believe the increase is too high.
And under the Housing (Scotland) Bill, which has just been published by the Scottish Government, there are proposals for long term rent controls for private tenancies, as well as stronger protection against eviction.
Tenants should brace themselves for a jump in rents.”
Oli Sherlock, Managing Director of Insurance at Goodlord (main picture), says: “Rental costs will be back in the control of landlords.
“We can expect to see a range of repercussions as a result. Firstly, tenants should brace themselves for a jump in rents.
“Over the last 18 months, lots of landlords will have seen their mortgage costs shoot up, so will be looking to recalibrate rental prices,” he says.
But “the lifting of this restriction could encourage wavering landlords to stick around and not sell up”.
Market “on ice”
And Lauren Hughes, Director of Customer Success at Vouch, says: “The Scottish market has been ‘on ice’ in many respects.
The removal of the rental cap will likely accelerate a big increase in average rents.”
“In England, rents have been 9% higher over the last 12 months. That’s a big increase in real terms for tenants and one that Scottish renters have been effectively shielded from,” she says.
“But the market pressures have been rising behind the scenes, and the removal of the rental cap will likely accelerate a big increase in average rents.”
