Rent cap again fails to halt double digit rent rises
Average new tenancy rents in Scotland have risen more than 10% for the fourth consecutive quarter despite a cap.
Rents for new tenancies in Scotland have risen by more than 10% for the fourth quarter in a row despite the Government’s cap.
The new figures from lettings portal Citylets reinforce industry beliefs that the current policy on rent controls, providing a 3% cap within tenancies, has led to hikes for new contracts.
The current emergency legislation introduced under the Cost of Living (Tenant Protection) (Scotland) Act 2022 is due to expire in March next year, and is widely expected to be replaced with wider, more permanent legislation.
Frenetic
Almost all major regions witnessed double digit annual growth, up to 19%, in the third quarter of 2023, with the market moving at frenetic pace for would-be renters, says Citylets.
The average property to rent in Scotland, having surpassed the £1,000 mark for the first time in Q1 2023, continued to rise to £1,115 per month with the rate of growth accelerating to 13.7% year on year.
Sharp rise
Thomas Ashdown, MD at Citylets, says: “It is clear from the latest Government consultation that future policy for Scotland’s private rented sector will likely take the form of the current legislation with a further capping of rents, now including the open market.
“Whilst it is of course understandable that the headline figures for the continued sharp rise in open market rents will be causing unease, it remains a statement of fact that expanding the number of homes in the sector will have the natural cooling effect desired.”
We urgently require the Scottish Government to do a big U-turn.”
Karen Turner, lettings director at estate agency Rettie & Co, says: “Scotland’s two main cities are still feeling the aftermath of the busy summer months with tenant demand far outstripping supply.
“We urgently require the Scottish Government to do a big U-turn, and address the housing crisis over all sectors.”
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