WHEN Rune Rubensson moved into a midmarket flat owned by a housing association, they thought their worries about high rents were over.
Eighteen months later, Rune and their flatmate’s rent has been increased twice – pushing them into financial hardship.
They are now living in fear of another increase which could force them out of their Glasgow flat, while campaign group Living Rent says the “outrageous” rent rise demonstrates why rent controls need to include midmarket properties.
The initial rent for the Home Group flat in Dennistoun was £704 but it was increased to £755 and will increase to £801 in August – a 14% rise in total when inflation is running at around 3%.
The new rent was nearly the same as the pair’s previous rent for a tenement in poor condition owned by a private landlord. After they left, the landlord re-advertised the property at a higher rent of £1200 – £400 more per month.
However, Rune (below) and their flatmate were able to secure the midmarket rent at a Home Group property as their income was classed as low to moderate. Midmarket rents are usually cheaper than private rents but more expensive than social housing and tenants only qualify if they meet certain conditions such as having low-paid full-time work.
Living Rent is calling for protections for such tenants written into the Scottish Government’s new Housing Bill.
“The financial restrictions that enable tenants to live in a midmarket property mean that for many, any rent increase quickly becomes unaffordable,” said a spokesperson.
However possible amendments to the bill include an exemption for midmarket properties. A public consultation on the bill is collecting responses until July.
In Greater Glasgow, private rent prices for a two-bedroom flat have increased 81.8% since 2010 with the average now hovering above the £1000 mark.
Rune and their flatmate appealed against their latest rent increase to the Scottish Government’s rent officer who visited the property but ruled it was allowed as it matches market rents in the area.
Rune Rubensson said Home Group’s ”unaffordable” year-on-year rent increases had left them feeling uncertain about their housing stability.
“If rents keep increasing to the so-called market rate while our financial situations aren’t improving, it will push us out of our housing,” said Rune.
They added that the rent adjudication process, which is supposed to protect tenants, felt “pointless” given that their rent was compared to market rents.
“Market rents have shot up to such a shocking level in recent years it is unbelievable,” Rune said. “With the failure of the rent adjudication process, there seem to be no effective legal protections for tenants. This leaves us no choice but to shell out a huge proportion of our income just to have a roof over our heads.”
Stella Rooney, chair of the Dennistoun branch of Living Rent, said the rent adjudication service was “ineffective” for midmarket properties.
“The rent adjudication system measures increases against market rents in the area. However, as midmarket properties are below market rate, any rent increase will be measured against market rent, and therefore be allowed,” she said.
“The outrageous rent increases Home Group has served Rune, and its approval by the rent adjudication service, is typical of what is happening to tenants all over Scotland at the moment.
“As we have seen, it was completely irresponsible for the Government to have ended the measures that have protected tenants from sky-high rent increases.
“The rent controls and protections in the Housing Bill will only come into effect in 2027. From now until then, tenants are facing years of completely uncapped rents.
“Rune’s situation also highlights that rent controls need to include midmarket properties. So-called ‘midmarket’ developments are usually run by social landlords and presented as an affordable option for tenants. But many find themselves forced to pay vastly higher rents than advertised shortly after moving in.
“The Scottish Government has ripped out the rug from underneath tenants and abandoned us to the whims of a broken housing market.
“They must stop all landlords – social and private – from pushing rents up to unaffordable levels and ensure that all tenants can afford to stay in their homes.”
A Scottish Government spokesperson said: “There is a need for longer-term action on rents to ensure a fairer system for tenants – that is why we are taking forward measures in the Housing Bill to support the introduction of longer-term rent control where this is needed.”
The Home Group was approached for comment.
