‘Arrogant' SNP introduces more rent controls
They tabled plans at Holyrood that would see rent increases in 'control areas' capped at 1 per cent above the CPI measure of inflation, up to a maximum of 6 per cent.
Under the amendments lodged to the Housing (Scotland) Bill, the cap would apply both to rent increases during the term of a tenancy and in-between tenancies.
Ministers would be tasked with determining which areas in Scotland should fall under control areas, with 12 of Scotland's local authorities having declared a housing emergency.
But industry data have disclosed that previous SNP controls backfired by pushing up average rent rises in Scotland, above the increases seen in England.
Experts said the controls curtailed investment in the private rented housing sector and led to landlords withdrawing their properties from the market. This exacerbated a shortage of rental properties for tenants.
It emerged last month that building work started last year on the lowest number of private houses since 2013, apart from during the pandemic.
Meghan Gallacher, the Scottish Tories' shadow housing secretary, said: 'Disconnected SNP ministers are arrogantly still refusing to accept that previous rent caps schemes ended up in disaster.
'The previous measures drove away much-needed investment in Scotland's housing sector and crippled tenants with soaring rent increases.
'SNP ministers' plans for permanent rent controls will do nothing to tackle Scotland's housing emergency which has occurred on their watch and left thousands of families languishing in temporary accommodation.'
John Blackwood, chief executive of the Scottish Association of Landlords, welcomed the amendments allowing property owners to increase rents.
But he said: 'Landlords are quite rightly extremely concerned about rent controls, and many have already sold up and exited the sector.
'Now, more than ever, the Scottish Government needs to work with private landlords to secure the future of private renting in Scotland and ensure people have homes to rent when and where they need them.'
The SNP introduced an emergency rent cap in October 2022. The policy was supposed to be a short-term measure to support tenants through the cost of living crisis.
However, the cap was extended and, while it ended last year, a temporary framework of rent controls is still in place while the SNP finalises the Bill, which aims to make them permanent.
Shirley-Anne Somerville, the Social Justice Secretary, said: 'Ensuring families can have secure and affordable homes that meet their needs is part of our approach to tackling the housing emergency.
'These measures will also help protect tenants against a backdrop of a continuing cost of living crisis and rising energy costs.
'We are doing what we can with the powers that we have as we know our policies are working to improve the lives of families in Scotland.'
She said the Scottish Government had been 'working closely with tenants' organisations' in the legislation, 'including a system of long-term rent controls that is fair for tenants and encourages investment in the sector'.
Aditi Jehangir, chairman of tenants' union Living Rent, said: 'The in-between tenancy protections suggested by the Government are crucial. They mean that landlords will stop evicting tenants to up the rent.
'However, the rent increase formula suggested locks in increases above inflation. The last decade has seen rents grow completely unaffordable. Any formula that increases rents above the rate of inflation will push already struggling tenants further into poverty.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South Wales Guardian
25 minutes ago
- South Wales Guardian
Why has inflation risen and what does it mean for households?
The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation increased to 3.8% last month, from 3.6% in June. It was slightly higher than the 3.7% rate that most economists had been expecting for the month. Here, the PA news agency looks at what is behind the latest increase and what it means for households and the economy. – What is inflation? Inflation is the term used to describe the rising price of goods and services. The inflation rate refers to how quickly prices are going up. July's inflation rate of 3.8% means if an item cost £100 a year ago, it would now cost £103.80. It is above the 3.6% rate recorded in June, meaning that prices were increasing at a faster rate than they previously were. – What made inflation go up? The ONS said the biggest factor driving up inflation last month was a jump in transport prices. This was particularly the case for air fares, which rocketed by 30.2% between June and July – the largest increase since monthly data began being collected in 2001. The increase was likely caused by the timing of the school holidays, according to the ONS, with families typically facing higher prices to take trips during the peak summer season. Motor fuel costs also contributed, with both average petrol and diesel prices increasing between June and July. In the shops, consumers were likely to have seen certain foods like coffee, chocolate, meat and juice getting more expensive last month. The overall rate of food and drink inflation rose to 4.9% in July from 4.5%, the fourth month in a row that price rises have accelerated. – Will inflation keep rising? Economists think CPI inflation will keep rising to a peak of 4% in September, before price rises start to ease. This would be double the 2% target that the Bank of England is set to keep inflation under control. Philip Shaw, an economist for Investec, said he thinks food inflation is likely to edge higher in the coming months amid tougher conditions for suppliers and retailers. 'Beyond this though, inflation looks set to decline,' he said. 'The imposition of VAT on private school fees will drop out of the calculation in January, while the same will happen to a hefty jump in water charges in April. 'Further ahead, we remain of the view that a loosening in conditions in the labour market, in particular easing pay growth, will result in lower services inflation over the course of 2026. 'Hitting the 2% inflation target may be out of reach next year, but should be within sight in 2027.' – What does it mean for interest rates? Economists said the Bank of England could have some concerns about rising inflation in the UK's sprawling services sector, which the central bank pays close attention to. The annual rate of services CPI inflation rose to 5% in July from 4.7% in June. However, experts also think wage growth could continue to come down which would reduce consumer spending power. James Smith, a developed market economist for ING, said he sees it as 'still more likely than not' that the Bank will cut interest rates in November, followed by two further reductions next year. Mr Shaw said a rate cut in November will likely 'depend on how clear the signs are that inflation will resume its decline towards the end of the year and beyond'. Elliott Jordan-Doak, senior UK economist for Pantheon Macroeconomics, was more certain that inflation remaining above-target for the foreseeable future will be 'forcing' the Bank to keep rates on hold for the rest of 2025 at least.
The Independent
25 minutes ago
- The Independent
Network outage hits ScotRail's ticket and payment systems
ScotRail's ticket and payment systems have been hit by a 'network outage'. IT issues are affecting passengers on the country's busiest train stations, including Glasgow Central, Glasgow Queen Street and Edinburgh Waverley. ScotRail said its internet service provider is experiencing a 'network outage' at a 'small number of locations' across the country. Passengers are reporting problems buying tickets on the ScotRail app as well as station machines. A warning on the app for trains between Glasgow and Edinburgh also states: 'Customer information screens and live departure boards may be showing inaccurately at ScotRail stations.' Alan Manclark, ScotRail's head of IT, said: 'We're aware of an issue being experienced by our internet service provider, which is affecting connectivity at a small number of locations across the country, including Edinburgh Waverley, Glasgow Central, and Glasgow Queen Street. 'Our supplier is working hard to resolve the issue, and we're sorry to customers for the inconvenience while we await a fix.'
The Independent
25 minutes ago
- The Independent
Why inflation has risen above expectations – and what it means for you
UK inflation climbed by more than expected in July, official figures reveal, as soaring air fares for summer holidays and food prices continue to rise. The Consumer Prices Index (CPI) rose to 3.8 per cent last month, up from 3.6 per cent in June, according to the Office for National Statistics (ONS). This marks the highest rate since January 2024, when inflation stood at 4 per cent. The ONS highlighted transport costs as the primary driver behind the increase, particularly a significant surge in flight prices. Air fares jumped by 30.2 per cent between June and July, the largest monthly rise recorded since data collection began in 2001, as families booked trips during the school summer break. Here's everything you need to know about the latest figure: What is inflation? Inflation is the term used to describe the rising price of goods and services. The inflation rate refers to how quickly prices are going up. Put simply, July's inflation rate of 3.8 per cent means that if an item cost £100 a year ago, it would now cost £103.80. Chancellor Rachel Reeves acknowledged that there was 'more to do to ease the cost of living' following the latest figure. She said: 'We have taken the decisions needed to stabilise the public finances, and we're a long way from the double-digit inflation we saw under the previous government, but there's more to do to ease the cost of living. 'That's why we've raised the minimum wage, extended the £3 bus fare cap, expanded free school meals to over half a million more children and are rolling out free breakfast clubs for every child in the country.' Rail fares set to rise by more than expected Another lesser-known figure that tends to rise and fall in line with CPI is Retail Price Inflation (RPI). This rose to 4.8 per cent in July up from 4.4 per cent. This is significant as it was last years' July RPI (3.6 per cent) that set the 4.6 per cent rail fare rise in March 2025, at exactly one percentage point higher. If the same formula is used this year, then fares could rise by a massive 5.8 per cent next March. Campaigners have reacted negatively to the possibility, calling on the government for clarity. Ben Plowden, chief executive of lobby group Campaign for Better Transport, said: 'Today's inflation figure could mean a big fare rise for rail passengers next year, especially if the Government decides to go with an above-inflation increase like we saw this year. 'With the railways now moving under public control, the fundamental question for the Government is how to use its role in setting fares policy to deliver a more affordable rail network and encourage more people to travel on it. 'Next year's annual rise represents the first real opportunity for the Government to show passengers – both current and future – just how it plans to do this.' Why did inflation rise again in July? Grant Fitzner, the ONS's chief economist, explains: 'The main driver was a hefty increase in air fares, the largest July rise since collection of air fares changed from quarterly to monthly in 2001. 'This increase was likely due to the timing of this year's school holidays. 'The price of petrol and diesel also increased this month, compared with a drop this time last year. 'Food price inflation continues to climb – with items such as coffee, fresh orange juice, meat and chocolate seeing the biggest rises.' Will inflation rise again? The Bank of England is expecting CPI inflation to continue rising to a peak of 4 per cent in September, before price rises start to ease. The central bank is tasked with keeping inflation at 2 per cent. Elliott Jordan-Doak, senior UK economist for Pantheon Macroeconomics, suggested the Bank's policymakers could be concerned by rising inflation in the UK services sector, but that it was 'partly driven by a sharp move in the erratic airfares component, which could unwind in August's data'. The annual rate of services CPI inflation rose to 5 per cent in July from 4.7 per cent in June. 'The big picture remains that inflation is set to stay miles above target for the foreseeable future,' he said. The economist is forecasting that CPI will remain above 3 per cent until April 2026, meaning the Bank could keep interest rates on hold for the rest of the year.
