Tens of thousands of tenants in social housing in Scotland face soaring rent increases when a nationwide freeze ends at the same time as annual energy bills will rise by around £500.
Some housing associations have launched consultations on proposed rises that could take place from the start of April, with one resident claiming tenants are being “treated like magic money trees”.
Adrian Fletcher, 49, was one of the Glasgow Housing Association’s (GHA) tenants to join a focus group, where occupants were told a rise by 6.5 per cent was needed to maintain existing services.
However, the GHA, recognising this increase would be “challenging”, offered a minimum increase of 3.9% as an alternative.
Additional options from Scotland’s largest social landlord, seen by The Herald, of 4.4% and 4.9% were also presented to the group but there was no explicit option for no increase.
Mr Fletcher said there was “outrage” from people in the room upon hearing the suggestions.
He said: “We’ve got no more money left, yet they are still trying to bleed more out of us.
“There was a general consensus by the end that there shouldn’t be any rent increase.
“When they spoke about what services to cut, people said ‘well cut them because we never notice that they are there’.
“We don’t know who the housing officer is or how to contact them, so if those services get capped people wouldn’t notice the difference.”
Wheatley GHA, which homes 40,000 households across Glasgow, said no decision have been taken about rent rises “at this stage”.
But it is not the only association already consulting on rent increases.
The Scottish Housing Regulator has advised groups to consult as normal on rents for the next year despite the freeze imposed by the Scottish Government.
Council tenants in East Lothian are also being asked to approve a rent increase of up to 5%, but residents are being offered the option of no increase.
Rent in social housing is increased in April every year in line with inflation and Mr Fletcher said this has effectively let associations dodge the emergency rent legislation.
Living Rent, the union for Scotland’s tenants, said an increase next April was “unjustifiable” amid growing costs of living, stagnating wages and crippling inflation.
The freeze on rent rises for tenants runs until March 31, 2023 and ministers will review it next year.
If it is not extended then private renters will also likely face increases the same month as energy bills rise.
Chancellor Jeremy Hunt confirmed the energy price guarantee scheme would go up from £2,500 for the average household to £3,000 from April as the UK Government support is scaled back.
Mr Fletcher said: “As it stands currently, the rent freeze legislation has gone nicely for landlords like Wheatley because if it is not extended then it doesn’t apply to them.
A Labour MSP, who was among the first to urge a rent freeze at the start of this summer, said the rent cap should remain in place until a national system of rent controls can be put in place.
Mercedes Villalba said: “It’s alarming that these landlords are planning to increase rents.
“With the cost-of-living crisis and Tory government austerity causing a surge in food bank use, it’s vital rents are controlled.
“The Scottish Parliament voted for a rent freeze to protect struggling households. The Scottish Government must act now to ensure that the rent freeze remains in place until we have a national system of rent controls to bring rents down, given the additional austerity brought forward in the Tory Chancellor’s budget this week.”
Living Rent secretary Meg Bishop said: “Housing associations’ talk of rent increases is really concerning, especially as the rest of our bills are skyrocketing.
“No one’s rent should be increasing right now, especially in the socially rented sector.”
She said the consultations are often a “rubber stamp for increases” amid low participation.
Ms Bishop added: “Tenants are then left with a rent increase whilst housing associations can claim to have ‘consulted’.
“In the middle of a cost-of-living crisis, everyone should be rolling up their sleeves to examine how to improve the energy efficiency of homes, without making tenants bear the costs.
“Talking of increasing rents when many blocks are waiting for overdue crucial repairs and the state of too many homes is damaging tenants’ health is just the wrong focus.
“Social landlords should be looking at how they can support people to live in affordable quality homes, rather than how they can extract more rent from their tenants.”
Ms Bishop also warned the consultations are “often without the option of no increase”.
The impact of an extended cap on rents was explored in the draft proposals. The Wheatley Group said this would be “devastating” for services and stated it would “not propose to offer a rent freeze unless it is legally required to do so”.
Speaking on the recent focus group, Mr Fletcher added: “The researchers said you can say on the feedback if you don’t want a rent increase, but they don’t present freeze rent as an option, so people obviously don’t pick it.
“They word it in such a way that they know people will have to pick one of the increase options. I think it is disingenuous.”
Tenants under other associations that are yet to launch consultations about possible rent increases still fear the rises are imminent.
Oliver Robertson, Living Rent member and a tenant with the Southside Housing Association in Glasgow, , said: “As a social housing tenant for the majority of my life, I have witnessed these pseudo consultations year on year.
“I, and the neighbours I speak to, respond against the increase in rents as we see no improvement in services. Yet year on year, rents are increased, and housing associations claim to have ‘listened to us’.
I expect my rent to increase this year although I have not received my consultation yet from Southside Housing Association.”
Mr Fletcher said the rises for GHA Wheatley tenants are going to “exacerbate” financial struggles being faced by people across the country. He said: “People are already having to choose whether we heat our home or do we eat. It is going to be do we heat or eat or pay our rent?
“It’s just going to exacerbate the problem. I am an unpaid carer for my husband, and it is just scary.”
A Wheatley Homes Glasgow spokesman said the group is “doing everything we can to help our most vulnerable tenants”.
He added: “Our new £6 million Here for You cost-of-living crisis fund has strengthened further the wraparound support services we offer already.
“These range from emergency food and fuel vouchers to essential household items, such as fridges and furniture.
“The focus groups, which are an integral part of our tenant consultation, explored a range of options, including the impact of a rent freeze. No decisions have been taken at this stage.
“They enable us to hear a wide range of different views and to share feedback with our tenant-led board on everything from rent levels to suggested improvements to our homes, neighbourhoods and services.”
Sally Thomas, chief executive of the Scottish Federation of Housing Associations, said: “Housing associations are not-for-profit organisations that build, maintain and rent out safe, warm, affordable homes for life, to people and families from every kind of backgrounds. They are legally required to consult annually on their rents for the coming year, and the Scottish Housing Regulator has explicitly stated they should do so as normal in 2022-23.
“Rents in the social housing sector are consistently around half of the level charged in the private sector, and around 70% of tenants have their rents covered in full or in part by welfare benefits.
“Despite spiralling costs, every housing association in Scotland kept rent increases below inflation last year whilst also providing a huge amount and range of services to tenants such as financial support and advice on energy, employability and financial management.”
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