Edinburgh Tenant Describes 34% Rent Increase as ‘Eviction-like’

When Allan Ramsay engaged with his landlord regarding a new tenancy arrangement, he was aware that an increase in his rent was inevitable. He had resided in his one-bedroom flat in north Edinburgh with his partner since 2017, but their relationship concluded earlier this year. The couple subsequently informed their letting agent of their desire to terminate their joint tenancy, with Allan planning to continue living in the property. The theatre worker shared with BBC Scotland News: “I was a wee bit nervous given how high Edinburgh rents are but I had been in the flat seven years, paid all my bills on time, paid my rent on time and been a good tenant.” He added, “I was expecting maybe a £100 or 10% but what they came back with was 34%.” Mr. Ramsay, 37, who previously paid £741 monthly with his partner, was informed that the new rental agreement would cost £995 per month. However, weeks after he appealed to the landlord for a reduction, the proposed rent was raised by an additional £5, reaching a total of £1,000 per month. Allan, who is currently “sofa surfing” with friends while attempting to save for a deposit for another flat, characterized this development as a final “gut punch.” This experience has left him feeling priced out of the city where he has lived his entire life. In Scotland, private landlords are permitted to increase rent for their ongoing tenants only once every 12 months. If a tenant believes an increase is excessive, they can challenge it by applying to Rent Service Scotland, an entity within the Scottish government. The maximum allowable increase under these circumstances is 12%. However, because Allan sought to change from a joint tenancy to a single one, the letting agent was able to create a new agreement, treating him as a new tenant subject to a significantly higher rent. The financial challenges encountered by Allan and thousands of other renters across the country are slated for discussion in the Scottish Parliament during the upcoming debate on a new Housing Bill. This proposed legislation would enable the establishment of rent control zones, which would impose limits on how much rents can increase. This initiative comes amid a national housing emergency, with the latest Scottish government figures indicating that average prices for a one-bedroom private rental property have risen by just under 10% over the past year. An increasing number of people in Scotland are described as experiencing “core homelessness,” which includes living in hostels, rough sleeping, or staying with friends. The homelessness charity Crisis previously reported that over 18,400 households were in this situation daily in 2022, and it warned that this number is projected to increase by a third by 2026. Critics of the control zones contend that they will deter property owners from participating in the private rental market, thereby reducing the supply of available accommodation. Conversely, Allan stated that the rental market “feels like it is going unchecked at the moment.” He supports the rent cap proposal, which would have benefited him if such controls had been in effect in the area where his flat was located. He remarked: “I think it is long overdue.” He further elaborated, “In my experience most people have a horror story about a letting agent or a landlord and that seems to have been going on for years and years – where renters have been overlooked and the rental market, as a place where people are making money, is just going from strength to strength.” Allan appealed directly to both the letting firm and the landlord, providing two testimonials from residents in his building regarding his positive conduct as a neighbor over the years. He also indicated he could afford up to £850. However, he was informed that the owner’s costs had risen, and they aimed to secure the market rate. It was during these negotiations about the substantial rent hike that he was notified of an additional £5 increase, bringing the total to £1,000 per month. He commented: “It felt like an eviction through putting the cost up sky high. “It was a huge gut punch and the fact that it was such a measly £5, I couldn’t believe it.“For me as a person on my own it would be more than 50% of my salary and that is before bills, council tax and everything else.” The comprehensive Housing Bill was published in March, with its primary objectives being to prevent homelessness and strengthen tenants’ rights. The proposals include long-term rent controls for private tenancies, new rights for pet ownership, permission for tenants to decorate rented homes, and enhanced protection against evictions. If enacted, the bill will impose a duty on local councils to conduct assessments of the condition of private accommodation in their areas. It also grants the authority to implement rent controls in specific geographical regions. The bill is currently in its early stages, and a key amendment to be considered in Holyrood later proposes a cap on rent increases in rent control areas. This cap would be linked to the Consumer Price Index (a measure of inflation) plus 1%, with a maximum increase of 6%. While some tenants’ rights groups have welcomed the Housing Bill, landlord groups have warned that the legislation could exacerbate Scotland’s housing crisis, as the changes might discourage property owners from renting out their properties. Meanwhile, Gordon MacRae, assistant director at Shelter, stated that the bill might prevent homelessness in the future, “but unless it’s matched with real resources, I think it could actually make it worse.” He told the BBC’s Good Morning Scotland programme that the bill assigns additional duties to local authorities already struggling to provide basic services, “but it’s not currently being matched with any new money.” The bill, if passed, is not expected to come into effect until at least 2026. In the interim, Allan has been residing with friends and is considering moving back in with his parents to accumulate savings, enabling him to re-enter the rental market. However, his enthusiasm for living in Scotland’s capital has diminished. He explained: “In the last six months I definitely have fallen out of love with Edinburgh a bit.” Allan’s former flat, located near the city centre, is now being advertised at £1,060 per month. He further stated: “You can only really feel at home somewhere if you can afford to live there.” The program “Evicted, Tenants on the Edge” chronicles the experiences of four young renters facing the prospect of being priced out or displaced from their homes as Scottish law evolves, rents rise, and evictions increase. The program is available for viewing on the iPlayer. Copyright 2024 BBC. All rights reserved. The BBC disclaims responsibility for the content found on external websites. Information regarding their external linking policy is available.