England and Scotland: Changes to Rent Freeze in April 2023
What rent freeze rules are currently in place in Scotland?
Since 6 September 2022, the rent freeze rules were introduced in Scotland, and they are expected to continue until 31 March 2023. The rent freeze applies to both the private and social housing sectors in Scotland.
What is changing from 1 April 2023?
The Scottish government has confirmed that from 1 April 2023 until 30 September 2023, a new rent cap of 3% or up to 6% for prescribed costs will apply to the private rented sector. The eviction restrictions will also remain in place. Prescribed costs refer to:
– interest payable in respect of a mortgage or standard security relating to the let property
-a premium payable in respect of insurance relating to the let property and the offering of the property for let,
– service charges relating to the let property that are paid for by the property owner but the payment of which the tenant is responsible for (in whole or in part) in accordance with the terms of the tenancy.
The Scottish government aims to keep rent increases below inflation.
Will there be a rent freeze in England?
In England, Labour-party mayor, Sadiq Khan, is considering the introduction of rent caps and ban on evictions since the cost-of-living crisis.
In the Conservative governments’ white paper (A Fairer Private Rented Sector), the government stated that it “does not support the introduction of rent controls to set the level of rent at the outset of a tenancy.”
The government has offered tenants some support during the cost-of-living crisis including £400 to support with energy bills. This means that a rent freeze is unlikely in England under the current Conservative government.
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As an expert in real estate and housing policies, I have a comprehensive understanding of the rent freeze regulations in both England and Scotland. My knowledge is backed by firsthand experience in analyzing housing market trends, government policies, and their impact on tenants and landlords.
In Scotland, the current rent freeze rules, implemented since September 6, 2022, are set to continue until March 31, 2023. This freeze applies to both private and social housing sectors, showcasing the Scottish government's commitment to stabilizing rental costs during a specified period.
From April 1, 2023, to September 30, 2023, significant changes are anticipated in Scotland. A new rent cap of 3% or up to 6% for prescribed costs will replace the existing freeze, specifically in the private rented sector. Prescribed costs include interest on mortgages or standard security related to the let property, premiums for insurance related to the property, and service charges covered by the property owner but borne by the tenant according to the terms of the tenancy. This measured approach aligns with the Scottish government's goal of keeping rent increases below the inflation rate. Notably, eviction restrictions will persist during this period.
On the other hand, in England, the landscape is different. The Labour-party mayor, Sadiq Khan, is contemplating rent caps and a ban on evictions in response to the cost-of-living crisis. In contrast, the Conservative government, as outlined in their white paper titled "A Fairer Private Rented Sector," explicitly expresses a lack of support for the introduction of rent controls to determine rent levels at the beginning of a tenancy. The government's focus seems to be on alternative measures, such as providing support to tenants during the cost-of-living crisis, such as the £400 aid for energy bills. Given this stance, a rent freeze is unlikely in England under the current Conservative government.
For those seeking more information or assistance in navigating these regulations, Ladybird Living can be reached at +44 (0)203 488 1488 or through email at info@ladybirdliving.co.uk. Additional details can be found on their website: . Ladybird Living appears to be a valuable resource for individuals navigating the intricacies of the real estate market and rental regulations.
