Huge rise in tenants disputing hard-pressed landlords over rent hikes

Tenant disputes: Generation Rent reports an eightfold increase in tenants disputing rent rises, largely influenced by temporary rent caps in Scotland.

Temporary rent restrictions: The Scottish Government implemented caps in April 2024, limiting rent increases to a maximum of 12%, tapered based on the size of the rise. These restrictions ended this week.

Applications: Since April 2024, 899 applications were made, with 32% of households seeing their rent increase capped at the maximum 12%. This contrasts with 106 cases in the year ending September 2022.

Renters’ vulnerability: Generation Rent expressed concerns about high rents forcing renters into poverty and landlords potentially hiking rents in the next two years before permanent caps come into force.

Permanent rent cap: A new Scottish Housing Bill proposes a permanent rent cap, allowing increases up to CPI+1%, capped at 6%, effective from 2027.

Current determinations: Rent Service Scotland will now base rent tribunal decisions on open market rents following the removal of temporary caps.