As a reputable Fife letting agency, we understand the importance of keeping Fife landlords and tenants informed about the current regulations affecting the Fife rental market. In this article, we will provide all Fife landlords with essential information about the rent cap and the suspension of evictions in Scotland.
The rent cap in Scotland, currently set at 3% in most cases, is set to be extended for an additional six months. Previously, a rent freeze at 0% was in effect from 6th September 2022 to 31st March 2023. From 1st April 2023, the Scottish government increased the cap to 3% and was due to remain in place until September 2023.
However, Patrick Harvie, the Minister for Tenants’ Rights in Scotland, has expressed his desire to extend these measures until March 2024. Parliament’s approval would mark the final date for the rent cap and eviction protections.
Under the current rules of the rent cap, as outlined in the Cost of Living (Tenant Protection) (Scotland) Bill 2022, a rent freeze and suspension on evictions were implemented from 6th September 2022 to the 31st March 2023. Any notices to increase the rent issued on or after 6th September 2022 were rendered void. Rent increases given before this date, however, remain valid.
Since 1st April 2023, rent increases have been capped at 3% for most private Fife landlords, though they can apply for an increase of up to 6% to cover specific costs. Evictions will continue to be ‘prevented’ with certain exemptions.
It is important to note that the current rent cap applies solely to the private rented sector. A separate agreement was reached to keep rent increases below inflation in the Scottish social rented sector for the next coming financial year.
The rent cap conditions apply to all existing private residential, assured, and short-assured tenancies. While Fife landlords can reset rents between tenancies, new Fife tenants will enter into agreements knowing they are protected from rent increases, except in specific circumstances.
Some exemptions from the rent cap exist for Fife landlords. Prescribed costs’ such as interest on the home loan/ mortgage or ‘standard security’ of the rental property, insurance premiums, and service charges agreed upon in the tenant’s contract can be considered for a rent increase. Fife Landlords must apply to ‘Rent Service Scotland’ to cover up to half of the increased costs, with the increase limited to a maximum of 6% until at least September 2023.
The suspension on Fife evictions does not prevent Fife landlords from seeking court orders for eviction; however, enforcement of eviction actions is suspended until the restrictions are lifted unless an exemption applies.
Exemptions include cases of criminality, antisocial behaviour, and if the tenant abandons the property, when mortgage lender intends to sell the property and when a landlord plans to live there due to financial hardship. Substantial rent arrears of six months’ rent also qualify for exemptions. If eviction proceedings started before 6th September 2022, the restrictions do not apply.
To enforce the rent cap, Fife tenants can refer a rent increase to a Rent Officer to verify compliance. This is particularly useful in cases where rent includes additional costs like energy bills. In the case of unlawful evictions, the bill will amend the Housing (Scotland) Act 1988 to calculate damages based on a ‘multiplication of the monthly rent.’
For student tenants in Scotland, the legislation has considered their unique circumstances. While most student accommodations, such as halls of residence and purpose-built student housing, have indicated little interest in increasing rents mid-tenancy, the measures will still apply to these providers to ensure greater assurance for student tenants.
Staying updated on the rent cap and the suspension of evictions is crucial for landlords in Fife. These regulations aim to stabilise housing costs, protect tenants from sudden rent increases, and prevent unwarranted evictions.
If you are a Fife landlord and have any questions or require further clarification regarding these measures, please do not hesitate to contact our expert letting agency. We are here to assist you and provide the necessary guidance to ensure compliance and a smooth renting experience for both Fife landlords and Fife tenants.
