Reform call as rent bills hit record high

Plea to step up protection against ‘unfair hikes’

rents have hit a new high, triggering demands for reform and increased protection for tenants.

the average monthly rent rose 3 per cent to £549 last month, according to property firm Your Move.

the estate agent also warned that the rate of i ncrease is starting to accelerate.

scotland’s housing crisis and the snP’s abolition of the hugely popular ‘right to buy’ on council properties have made it more difficult for many families to own their own homes.

these problems were compounded by figures this month that show house prices had risen to record highs across most of the country after going up by nearly £17,000 in the past year, to an average of £180,892 – far ahead of pre-recession levels.

However, this was good news for landlords, whose total annual returns stood at 13.8 per cent in June, up from 9.5 per cent during the same period last year. Your Move added that there was growing evidence that some tenants are struggling, with 9 per cent of all rent paid late.

Brian Moran, lettings director at Your Move scotland, said: ‘the volume has been cranked up in the scottish rental market after a muted winter and a much faster beat of rent rises is now audible.

‘rents are hitting all-time local records in the parts of scotland that have traditionally been more affordable to live, where rental prices are lower.

‘It’s not just the big urban centres of edinburgh and Glasgow which are coming up against an urgent shortfall of housing.

‘there is furious demand for homes to let the length and breadth of the nation, and that is underpinning this build-up in rental prices.’

scottish Labour urged action to protect tenants against unscrupulous l andlords and unjustified rent increases.

Housing spokesman Michael McMahon said: ‘ Landlords are making more while more tenants struggle.

‘ the snP Government in edinburgh cannot continue to turn a blind eye to rent reform.

‘We need to reform the private rental sector to make it work for everyone, rather than simply act as a cash cow for landlords.’

Mr McMahon added: ‘An unfair rent hike from a bad landlord is the last thing anybody needs, especially t he 100,000- plus households in scotland who live in poverty and rent privately.’

However, the scottish Government said steps were being taken to provide a better deal for tenants, and legislation would be introduced later this year. social Justice secretary Alex neil said: ‘We are already taking action to reform scotland’s private rented sector as part of our commitment to making sure everyone in scotland has access to good quality, affordable housing.

‘Over the last two years we have legislated to regulate letting agents, provided local authorities with further powers to tackle poor landlord practice and have banned the charging of premium fees.

‘this autumn we will introduce a Bill to parliament that will create a new private rented sector tenancy, improve security for tenants allowing them to better assert their rights and include proposals to protect tenants against excessive rent rises.’

Mr neil added: ‘We are investi ng £ 1.7billion in affordable housing and are 90 per cent of our way to reaching our five-year target of delivering 30,000 homes by 2016, including 18,600 homes for social rent.’

‘Cash cow for landlords’