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Cost of Living (Tenant Protection) (Scotland) Act 2022 – Rent increase ban update.
A coalition of letting bodies and landlords have submitted a Petition to the Courts against the discriminatory and unreasonable eviction and rent increase ban in Scotland.
The Scottish Association of Landlords, Propertymark and Scottish Landlord and Estates have joined forces and are seeking judicial review of the Cost of Living (Tenant Protection) (Scotland) Act which was passed in October 2022.
Landlords and property professionals have voiced concerns over this rushed and badly planned legislation. Many feel that this is an attack on private landlords, worsened now that the rent increase ban has been removed from the social rented sector as of 1 March 2023.
For the private rented sector? As of 1 April 2023, landlords can increase the rent by 3%, or apply to the rent officer for a 6% increase, to cover increases in the ‘prescribed property costs’ which are:
- The interest payable on any mortgage or standard security over the rented property.
- Any insurance premium you pay which relates to offering the property for rent. For example, landlords’ insurance. Increases in premiums for building or property insurance are not included.
- Any service charges related to the rented property that the tenant pays towards as part of their rent if this was agreed between you and the tenant as part of the terms of the tenancy.
Not the best deal for private landlords, who are also suffering through the cost of living crisis whilst being expected to carry tenant rent arrears and pay for maintenance and compliance. Not forgetting the eviction ban!
So, can I increase my rent from 1 April 2023?
Yes, for PRT tenancies, a rent increase notice can be served on the tenant from 1 April 2023. However, the legislation is clear that any notices issued before 1 April 2023, still fall within the 0% cap, even if the notice does not take effect until after 1 April 2023.
For Assured and Short Assured Tenancies, rent increases are still permitted and not affected by the ban as long as the tenancy agreement has a rent increase clause. Rents can be increased to the market value per the terms of the clause, unless there is a specific formula stating otherwise.
In such difficult times as these, it is now more important than ever to have a knowledgeable and qualified agent managing your rental property and your interests.
If you would like to discuss your options of changing agent or letting your property, please contact our friendly team on 0141 270 7878 for Glasgow and 0131 346 4646 for Edinburgh, or by email to email@example.com
We also have a in house Compliance Manager who is more than happy to assist landlords facing difficult letting and eviction issues.