THE Scottish Government's decision to lift rent controls within weeks has been described as "deeply irresponsible" amid concerns Scots will be forced out of their homes and "cities decimated".
Scotland's Housing Minister Paul McLennan revealed to The Herald that current rent control's would end next month as planned.
The rent control measures introduced in 2022 were introduced to temporarily freeze rent increases for private and social tenants, and for student accommodation with the cap set at 0% from September 6 until at least March 31, 2023.
In response to the act ending on April 1, 2023, then tenants rights’ minister Patrick Harvie announced plans to temporarily change the rent adjudication process until April 1, 2025.
However, the move means "open market rent setting can return with no rent cap restriction" until the Housing (Scotland) Bill comes into effect in 2027.
McLennan said: "Supporting tenants is a priority for the Scottish Government and we will continue to engage and work with stakeholders, including tenants’ groups.
"The temporary changes to rent adjudication were in place to support the transition away from the short-term rent cap that was in place under the Cost of Living Act. They were in place for year to manage the risk of very steep increases in rents for tenants if there was a return to market rent in a single step and will come to an end on March 31, 2025.
"We intend to lay regulations to ensure any application for a review of a rent increase received before April 1 is decided in line with the temporary changes.
"Most private tenants continue to have a right under existing legislation to seek a review of a rent increase if they consider it is too high and I would encourage any tenant who is concerned about a rent increase to apply for a review. Raising awareness of the strong existing rights tenants have is critical and we will launching a Renters Rights Campaign later this month that will support tenants to understand their rights, how to use them and where to seek further advice and support.
"We know that there is a need for longer term action on rents, which is why we are taking forward measures in the bill to support introduction of longer term rent control where this is needed."
Last week, McLennan announced amendments to the Housing (Scotland) Bill currently working its way through Holyrood that would see rents capped at inflation plus 1% in rent control zones, up to a cap of 6%.
Under the legislation, councils would be able to create rent control zones in areas where they fear housing costs could be rising too quickly.
Tenants’ union Living Rent previously raised concerns over the potential rising cost of rent.
"As soon as these measures end on March 31, tenants are going to be hit by a tidal wave of rent increases as landlords cash in after two years of emergency protections.
"The rent controls and protections in the housing bill will only come into effect in 2027. From now until then, tenants are faced with two years of completely uncapped rents. Landlords increasing rents, which will decimate our cities, force people out of their homes and further exacerbate both homelessness and poverty."
She added: "Landlords claim that investment stopped in 2022 is untrue. According to government data the number of properties in the sector has increased since the rent cap. They are celebrating the end of the rent protections as they know it will lead to a huge windfall for them.
"This government is deserting tenants and as a result, tenants will see rents skyrocket, an increase in homelessness and even greater pressure on social housing."
Alison Watson, Shelter Scotland director, said: “Rising rents in the private sector continue to put pressure on renters, demonstrating the urgent need for more social housing.
“The housing system in Scotland is broken and we need to see action now. With rents skyrocketing to unaffordable amounts, along with the rising cost of living, many will be pushed to the brink of homelessness.”
Watson added: “With the country in the grip of a brutal housing emergency, the Scottish Government desperately needs to invest in delivering more social housing to permanently lower housing costs, invest in existing properties, and invest in local services to ensure lifeline housing rights are upheld.”
