Cost of Living (Tenant Protection) (Scotland) Act 2022 - proposed extension: statement of reasons

Annex C

Comparison of private and social rented sectors

The following table provides illustrative figures on the scale of rent increase in the private rented sector, based on the average rent across Scotland for properties of different sizes. Two examples are given: a maximum increase of 3%, under the general rental uplift, or a maximum increase of 6%, if the landlord alternatively makes an application in respect of prescribed property costs.

* Note that the monthly rent figures as set out in this table are based on published figures from Private Sector Rent Statistics, Scotland, 2010 to 2022 that have been adjusted to reflect existing tenants rents, by applying an assumed reduction of 10% given that the published figures are predominantly based on advertised rents. This is based on information set out in Figure 8 in the published Cost of Living Bill Economic Background Paper which shows that at a national level, average two bedroom rents for existing households are approximately 10% lower than average rents for new households, averaged across each year from 2010 to 2019.

** The figure for share of PRS households in 4 bedroom properties includes 4 and larger bedroom sizes.

These can be compared to an average rent across the social rented sector of under £5 per week (or less than £22 per month). It should be noted that there will also be variation around this average for different sizes of properties in the social rented sector. However, looking at two bedroom properties (the most prevalent size in the private rented sector), it can be seen that a 3% uplift in the private rented sector (equating to an average of £19.88 per month) is of a similar magnitude in monetary terms as a £22 per month increase in the social rented sector.