3rd
Jan 2023
An agent’s association is backing the plan for social landlords in agreeing to an ‘average’ rent increase and says private landlords should also do this.
During Christmas festivities Scottish government MPs reached an understanding/agreement with social landlords to introduce below inflation levels of rent rises from April following the country’s rent freeze which is due to end in April this year.
From April for the next twelve months social landlords will now only raise rents by a somewhat ‘paltry’ average of £5 or less a week.
The chief executive of the Scottish Federation of Housing Associations Sally Thomas, says this is a great agreement for social renters that also gives landlords enough time to plan ahead, and helps deflate the issues caused by the current rent freeze.
She says: “We welcome the fact that Scottish Government has worked closely with the sector, to understand the evidence and avoid unintended consequences of this legislation, and to find a collaborative way forward. Investing in good quality, warm homes for social rent is crucial to tackling poverty in Scotland and protecting new and existing tenants from the increasing cost of living.”
One of UK agent’s body also backs the plan and wants the same scheme applied to private landlords who has also had to deal with the Scottish Government’s rent freeze.
A spokesperson for the body, comments: “The conversations taking place with Scottish social landlords needs to be echoed across the private rented sector.
“But instead, we continue to see costs increase such as the new raise in [stamp duty surcharge] to six per cent. Because of this, 68 per cent of letting agents are reporting an increase in notices to sell from their landlords.
"The private rented sector houses more people than the social sector, and whilst we whole heartedly support investing in and working with the social sector, it’s aggravating to continue to see the private sector be overlooked time and time again.”
Richard Merrick of PIMS, says: “ Doesn’t the association understand the Scottish government’s plans have and will further decimate the private rented sector, and as usual the social landlords are unable to cope with an influx of new tenants needing roofs over their heads?”
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