Edinburgh housing crisis: Tenants face skyrocketing rents as union warns of 'insane' increase notices from landlords

Edinburgh housing crisis: Tenants face skyrocketing rents as union warns of ‘insane’ increase notices from landlords

Landlords are dishing out notices of ‘insane’ rent increases with reports of some tenants facing hikes of almost 70 per cent.

It’s warned that rents will skyrocket in the coming months as a tenant union reports scores of landlords are already preparing to push up rents to market value, ahead of the rent cap being lifted in April. Living Rent has reported that some tenants have received notices of rent rises of between 30 and 70 per cent, sparking claims the increases amount to ‘de-facto eviction’. It comes as the city is in the grip of the housing crisis with tenants scrambling for homes due to unheard-of demand.

Sinead McNulty, an organiser with Living Rent said on X: “The rent cap is being lifted in Scotland on April 1st. Already we have had people get in touch. One with a 58 per cent rent increase from £900 – £1,425. Another with a 37 per cent increase from £950 – £1,300. We cannot rely on the market to regulate rents. Inflation has gone up, so people will be expecting some form of increase, but think how you would feel to go from spending one third of your wage to well above half on rent.”

Rent increase notices issued before April 1 are still subject to a 3 per cent cap, even if the increase doesn’t come into force until after that date. But the union has warned it will get worse and cause a ‘massive wave of increases and evictions’.

One Edinburgh resident wrote on a community forum: “From £1,000 to £1,700 per month. Is that even legal? I tried looking online and all the results just talk about the 3 per cent temporary cap. Is there no maximum increase outside of that? What a joke.” The Gorgie tenant added: “Looking around it’s well above the average for a flat this size.” Locals responding to the post said they were shocked with one having branded it ‘shocking and disgusting’.

Aditi Jehangir, National Secretary for Living Rent, told the Evening News: “We are hearing more reports of rent increase notices in Edinburgh and across the country. Most people don’t know their rights or they are scared to fight back. People are already struggling so they are really worried about this and it’s only going to get worse as we get closer to April. There’s going to be a massive wave of evictions as most people just can’t afford massive increases.

“In Edinburgh we have cases of many rises of 30 per cent or more, with areas like Leith particularly affected as there are a lot of joint tenancies. It’s clear leaving it to market rates isn’t the way forward. This hasn’t worked for Edinburgh or Scotland so far.”

Short assured tenancies with a rent increase clause are exempt from the cap. But in Edinburgh the most common leases are standard private rented contracts, which are subject to the cap. Living Rent claims landlords are ‘getting bold’.

She added: “Landlords shouldn’t be doing it but they are getting bold and trying to get away with doing something blatantly illegal. Private landlords say rent freeze has caused the problem but it’s loopholes being exploited. That’s the issue here. The Government needs to recognise that landlords will obviously say what they can to protect their investments and that fair maximum rents are badly needed now.”

Renters could be hit with increase notices issued for any amount from April. Under current Government proposals the tenant could then refer it to the rent officer for adjudication to have the increase restricted. But the bigger the difference between the current rent and the open market rent, the larger the increase would be allowed to a maximum figure – yet to be announced.

The Evening News previously reported claims that landlords are using ‘underhand tactics’ to increase rents during the ongoing eviction ban and rent cap. Letting agents and landlords declined to respond to the claims of rent increase notices but claim that maximum rents would be detrimental to tenants or landlords.

The Scottish Association of Landlords said the rent freeze has caused rented properties to ‘no longer viable for many landlords who have chosen to sell’. It argues this has decreased supply and increased costs for tenants.

John Blackwood, chief executive, said: “We urge the government to reconsider these proposals and if adjustments to rent adjudication are considered essential, select the least damaging option which we believe to be a simple amendment to prevent the rent officer or the tribunal from setting the new rent for the property to a figure higher than that requested by the landlord.”