Nicola Sturgeon’s lauded rent-freeze policy has been branded “meaningless” after her government’s industry watchdog encouraged landlords to hike prices the day it ends.
The FM was praised in September for implementing a six-month ban on property owners demanding higher payments from tenants battling the cost-of-living crisis. But we can reveal that the Scottish Housing Regulator (SHR) has told 32 councils and 150 housing associations to plan rent rises for the moment they are legally allowed.
The Scottish Government freeze officially ends in March 2023 – though they have powers to extend it. However, an email sent by SHR director of regulation Helen Shaw, and obtained by the Sunday Mail, states: “As things stand, social landlords are able to increase rents from April 2023. Given this, we advise you to proceed with the work to determine what level of rent increase you require for 2023/24. We appreciate that this is challenging.
“However, to not proceed could leave you in a position where you are not able to increase rents on 1 April, 2023, if you are permitted to do so. To help us best understand the developing position on rent increases, please advise your Engagement Plan Lead Officer of the level of rent increase you will propose to implement.”
Housing campaigners have pointed out that councils and housing associations increase their prices in April, making the October-to-March freeze pointless. Homeless Action Scotland said: “We have concerns that the Scottish Government’s ‘rent freeze’, which lasts to March 2023, is meaningless.
“It is worth noting that the SHR is communicating with Registered Social Landlords to advise them to start the processes which allow them to increase rent from April 2023. Rather than more emergency policy measures which flatter to deceive, the Scottish Government need to resolve this matter with a clear, concise and measured solution.”
Sean Clerkin, of the Scottish Tenants Organisation, said: “The idea that there is a genuine rent freeze is public relations spin when the rents of people in social housing increased in April 2022. It is unacceptable that tenants struggling with the cost of living should be facing a rent rise next year when they can barely afford to pay this year’s increase.”
Shelter Scotland’s Gordon MacRae said: “We welcomed the measures passed by parliament… however, the Bill wasn’t perfect. Scotland is in the grip of a housing emergency. Temporary measures won’t fix that, only long-term systemic changes.”
Scottish Labour housing spokesperson Mark Griffin said: “Labour led the way calling for a rent freeze and it’s right that it was delivered – but the SNP need to start planning for what comes next. Tenants cannot be abandoned to face a cliff edge when the freeze ends.”
MSPs are also to debate calls for the Scottish Government to pay off a crippling £33million debt owed by homeless people. The sum is due to councils for the cost of temporary accommodation when they are thrown out on the street.
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