Private rents faced by Scots have hit new record levels in a homelessness crisis despite a bill freeze brought in by the Scottish Government to support people through the cost-of-living crisis.
The Herald can reveal that annual rent rises from private landlords have leapt by 5.7% in the year to July, according to official estimates. Two years ago the rise was just 1.3%.
But new data from lettings agency Citylets reveals that for those Scots seeking new lets the market rent rise is even more significant at 11.4%. In Renfrewshire the rise as of April to June this year was as high as 17.7% in Dundee it was 16.2%, in Edinburgh it was 15.1%, in Glasgow it was at 14.4% and in Aberdeen it was 13.1%.
Calls have now been made for the Scottish Government to plug the 'loopholes' in a bid to properly protect tenants as a coalition of homelessness and housing experts said landlords could play a far greater role in helping to end homelessness in Scotland.
It comes as it emerged the number of open homelessness applications in Scotland has soared by over 27% since before the pandemic.
In September, 2019, there were 22,783 open applications with local authorities across Scotland. Three years later there were 28,944.
Details of the rent hikes have come despite the then First Minister Nicola Sturgeon announcing a rent freeze in September, last year to beat the cost of living crisis.
Rent increase notices between September 6, last year and March 31, 2023 were seen as void.
It was replaced by a 3% rent cap for private tenancies only in April which was to remain in place till September 30, 2023.
READ MORE: 'Scandal': More than 14 homeless people die a month in Scotland
A further six-month extension was agreed by ministers meaning landlords with properties within Scotland will continue to face restrictions to rent rises until March 2024.
The rent cap freeze and cap does not, however, apply to new tenancies.
Protest in June from members of the Scottish Tenants Organisation after a 7% rent hike for by the Queens Cross Housing Association.
The Scottish Tenants Organisation (STO) said that the Scottish Government needed a rethink over its rent curb efforts saying there were too many loopholes to make it work properly.
"It is appalling that the much vaunted rent freeze and cap championed by tenants' rights minister Patrick Harvie and Scottish Government ministers is failing again as the exemption has allowed average rents in Scotland for new tenancies in the private rented sector to rise by more than 10% making it more difficult for people to rent during a homelessness crisis."
Living Rent said the rent increases show how the private rented sector was "continuing to fail tenants" and called for changes to ensure that the rent cap is tied to the property rather than the tenancy.
They said: "It’s time for this government to wake up and realise that these escalating rent prices are tearing our cities apart at the seams.”
Ministers had previously been accused of betraying the poorest in Scotland in the cost of living crisis by not extending the cap to those renting from social sector landlords such as councils and housing associations who tend to provide lower cost accommodation taken by the poorest and most vulnerable in the country.
There are estimated to be 2.6m homes in Scotland with nearly a quarter being social rented properties and 15% being leased privately.
Meanwhile a new report published by the Everyone Home Collective made up of nearly 40 third sector organisations and academics, has today set out how the private rented sector could become a more accessible option for people experiencing homelessness looking for a settled, secure place to live.
The group says it strongly welcomed the Scottish Government’s commitment to build 110,000 affordable homes by 2032, a mid-term commitment that would result in the delivery of 38,500 social homes by the end of this parliament in 2026.
But while social housing plays a key role in helping people end their homelessness, they said the private rented sector is very rarely an option.
In its analysis, the group found that widening access to support and advice in private lets would help make the private rented sector more accessible to people experiencing homelessness.
It called on the Scottish Government to promote the role it sees the private sector playing in meeting current and future housing need, setting out a clear vision for the size and role the sector should play in the future tenure-composition of housing in Scotland.
It also urged the Scottish Government to support local authorities – in guidance and in practice – to work productively with the sector to reduce and resolve homelessness.
It also recommended targeted, proactive approaches to homelessness prevention for groups which may be at greater risk of eviction, alongside the use of Scottish Government social security powers to top up support for those subject to Local Housing Allowance shortfalls in PRS who are homeless or at risk of homelessness.
But housing campaigners say that support for many tenants renting from the private sector has been ineffective.
Sean Clerkin, campaign co-ordinator for the STO said: "The rent freeze and cap in Scotland can only work if it is applied comprehensively but instead there are so many loopholes it is next to useless for thousands of people looking to rent in the private rented sector in Scotland. It is yet another car crash moment for the Scottish Government."
Aditi Jehangir, secretary of Living Rent said that while the rent cap has been great for those in housing, it has "failed" those who need to move.
She said: "The overall rent increase figure of 5.7% is misleading as market rents have increased an average of 11.4%, rising higher to 15% in Edinburgh and 14.4% in Glasgow. As the rent cap is tied to tenancies and not the property, for those who have had to end a joint tenancy due to a flatmate moving out or for those that have needed to relocate, the rent cap has simply not protected them.
"The average tenant already spends at least a third of their income on rent, any further increase is pushing tenants to the edge. Tenants should not be forced to choose between remaining in the communities they love or being able to afford to live.
"Scotland’s tenants have been in the grips of a housing crisis for years. The rent cap is set to end in March next year but rent controls will not come into effect until much later. This government needs to act to ensure tenants can challenge any rent increase in the meantime and then act to bring rents down."
Tenants’ Rights Minister Patrick Harvie told The Herald: “Our emergency legislation has led the way within the UK at a time when rents have been rising across the UK. It applies to the majority of existing tenants in the private rented sector by placing a cap on in-tenancy rent increases, stabilising rents to help tenants to stay in their homes.
"Since 1 April 2023, private landlords have been able to increase a tenant’s rent in-tenancy by up to 3% or can apply to Rent Service Scotland for approval of an increase of up to 6% in specific circumstances.
“Scotland has some of the strongest homelessness legislation in the world and local authorities have a legal duty to provide accommodation to anyone who is facing homelessness’."
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