Last week we saw an announcement from the Scottish Government that rents in the public and private sectors will be protected from eviction as part of measures to help people from the rising cost of living.
Inflation measures the rate at which the cost of things increases. It is currently at a 40-year high, hitting 10.1%. In addition, energy bills will rise from £1,277 to £2,500 following the announcement of a price cap freeze, putting further pressure on households.
Rents will be frozen until at least March 2023 to help people cope with rising inflation, interest rates and energy bills. This emergency legislation will apply to the private as well as the public sector.
In addition to the rent freeze, there are also measures relating to evictions which means that landlords will not be able to enforce evictions even if a tenant is behind on rental payments.
Alongside the freeze on rents, tenants will be able to access a website that will provide information on the benefits and support available to those who are struggling with their rental payments and household bills.
The current freeze only applies to households in Scotland, but there have been calls for the eviction ban and rental freeze to apply to homes across the rest of the UK.
There are fears that a cap on private rents could force landlords to exit the rental market, making it even more difficult for renters to find homes, given that the current supply is already strained.
Social housing
The government regulates how social housing rents can increase by every year and these are set at the rate of inflation as measured by the Consumer Prices Index plus 1%. This means that social housing renters could face an increase of 11% next year without intervention.
The UK government recently launched a consultation on introducing a cap on rent increases for those living in social housing. The proposals didn’t include the private sector and there was a limit on council and housing association homes to 3%, 5% or 7% from 1 April 2023 to 31 March 2024. This would save social housing renters approximately £300 per year.
Private sector
For the first time, the Scottish Government has launched a separate consultation on setting a minimum standard for homes in the private rented sector. Named The Decent Homes Standard, it requires homes in the private rented sector to be free from any hazards such as damp and to be kept in a good state of repair with efficient heating and suitable facilities.
