Despite rent cap, Scotland’s rents rocket

Despite rent cap, Scotland’s rents rocket

0:03 AM, 11th September 2023, About A year ago 1

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Private rent prices in Scotland have soared to unprecedented levels, marking a significant surge in the housing market, one firm reveals.

Scotland’s largest estate and letting agents, DJ Alexander Ltd, says there has been a 5.7% year-on-year increase in rents to July 2023.

That’s the highest monthly figure recorded since the firm began data collection in January 2012 – and a big jump from the 3.9% increase seen last September.

That month also saw the introduction of the Cost of Living (Tenant Protection) Scotland Bill which brought in a rent cap.

And last week the Scottish Government’s First Minister, Humza Yousaf, unveiled plans for ‘long term rent controls’.

Capped mid-tenancy rent increases at 0%

When it was brought in, the legislation initially capped mid-tenancy rent increases at 0%, and up to 3% in specific circumstances.

The law was extended on 1 April for the rent cap increase to be raised to 3% – and up to 6% in some circumstances.

Data shows that while Scotland has seen lower rent rises compared to England and Wales since 2015, the pace of rent growth has begun to speed up over the past year.

The firm says that from January 2015 to September 2022, rents in Scotland increased by 8.7%.

However, the accumulated rate of increase up to July 2023 now stands at 14.1%.

‘Rents in Scotland have continued to rise at a very fast rate’

The firm’s chief executive, David Alexander, said: “We can see that rents in Scotland have continued to rise at a very fast rate since the legislative changes introduced last September.

“These increases have been as a response to the legislation but also a reaction to unprecedented demand coupled with increasingly limited supply.

“The result has been rapid rent increases and a lot of tenant frustration at being unable to find accommodation.”

He added: “In July alone we received nearly 40,000 enquiries for viewings for our rental properties with nearly 30,000 of these in Edinburgh alone.

“This is a clear indication that supply is not remotely approaching demand which results in these rent increases.”


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Morag

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9:23 AM, 16th September 2023, About A year ago

Rents in my area of north Glasgow have suddenly shot up by over 50% in the last year or so, after not moving for fifteen years. I guess the surrounding more popular areas have been priced out of most tenants' pockets, and the shortage of properties has driven them our way. Even so, I'm still getting out, not worth the risks now. I'm hoping to sell to my tenants as they've been good and I don't want to evict them in this market where they might struggle to get anywhere else suitable.

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