Local Government, Housing and Planning Committee
Cost of Living (Tenant Protection) (Scotland) Act
The Cost of Living (Tenant Protection) Scotland Bill was introduced on 3 October 2022 with the intention of:
- temporarily restricting landlords from increasing the amount of rent they can charge on residential tenancies
- temporarily placing certain restrictions on evictions from residential tenancies
- allowing for Scottish Ministers to make regulations about matters a rent officer or a First-Tier Tribunal must consider in determining rent.
Background
On 6 September 2022, the Scottish Government announced in its Programme for Government (PFG) that emergency legislation would be introduced to implement a rent freeze for tenants in private rented and social housing and a moratorium placed on evictions.
As the PFG stated:
“We recognise the huge pressures the cost crisis is placing on households, and the particular issues that will be faced by many people who rent their home. Given the UK Government has not as yet provided sufficient support in response to the cost crisis, we are looking at all action we can take within devolved powers to support people in Scotland. As part of this we intend to introduce emergency legislation to protect tenants by freezing rents and imposing a moratorium on evictions until at least 31 March 2023. We also intend to act to prevent immediate rent increases.”
Committee Consideration
Parliament agreed to treat the Bill as an emergency bill and considered it over three consecutive days. The Committee had no formal role in scrutiny of the Bill but agreed to take evidence on the issues expected to arise in it from the following stakeholders on 4 October 2022:
• Association of Local Authority Chief Housing Officers
• Scottish Federation of Housing Associations
• Living Rent
• Propertymark
• Crisis
• Scottish Landlords Association
The Committee also took evidence from the Minister for Zero Carbon Buildings, Active Travel and Tenants' Rights at the same meeting.
The meeting papers (which include written submissions from Citizens’ Advice Scotland, Shelter, and the Scottish Property Federation) and official report are available via the following links—
LGHP Committee Meeting Papers, 4 October 2022
LGHP Committee, Official Report, 4 October 2022
The Bill was passed on 06 October 2022 and became an Act on 27 October 2022.
Ongoing Work
The Act gives Ministers temporary power to cap rents for private and social tenants and for student accommodation. The Act also introduces a moratorium on evictions.
The measures in the Act initially applied from 6 September 2022 to 31 March 2023 but the Act contained a power to allow the provisions to be extended for two further periods of six months with parliamentary approval. Any provision in the Act could also be ended early or be suspended.
In January this year the Scottish Government laid regulations which:
• removed the social rented sector cap following a voluntary approach on rent increases with social landlords;
• an increase the private rented sector cap to 3%;
• a continuation of the pause on the enforcement of eviction orders;
• a suspension of the rent cap for student tenancies.
The Committee took evidence on the Regulations at its meetings on:
• Tuesday 21 February 2023
• Tuesday 28 February 2023
The extended provisions will expire at the end of September this year and accordingly the Scottish Government laid regulations on 1 June to extend the regulations for a further and final period of six months.
The Regulations provide that:
• Most in-tenancy private rent increases would continue to be capped at 3%;
• Alternatively, private landlords could apply for increases of up to 6% to help cover certain increases in costs in a specified time period where these costs can be evidenced;
• Enforcement of evictions would continue to be paused for six months for most tenants, except in a number of specified circumstances; and
• Increased damages for unlawful evictions of up to 36 months’ worth of rent would continue to be applicable.
The Committee took evidence from the Minister for Zero Carbon Buildings, Active Travel and Tenants' Rights on the Regulations at its meeting on 12 September 2023. The meeting papers and the Committees report are available via the following links—