We have been working with the Scottish Property Federation to monitor and respond to the proposals set out in the Cost of Living (Tenant Protection) (Scotland) Bill.

This Bill was introduced in the Scottish Parliament on 4th October 2022 and passed on 6th October 2022.  Through this period, we provided an initial overview of the impact of the bill, prepared and proposed amendments to the Bills Office and provided updates to clients. Certain of the amendments proposed by Burness Paull were discussed within debate. We are continually monitoring and reviewing further updates in this area and will support stakeholder engagement in the review of the bill’s application and potential future amendments.

The Bill has now passed and this blog covers the key elements and also flags potential lobbying opportunities for stakeholders to influence the evolution of the law in this area.

Rent Cap

Provisions

  • 0% rent cap applicable to all tenancies until 31 March 2023.
  • Applies to in-tenancy rent increases, but not new tenancies.
  • Covers social housing, student housing, and private residential tenancies.
  • Applications for increases can be made by landlords for prescribed and legitimate purposes (maximum 3%) (Further discussed in Rent Adjudication).
  • Rent increase notices given on or after 6 September 2022 have no effect.
Future Engagement/ Next Steps    
  • Review points every 3 months.
  • End point at 31 March 2023
  • Extendable to 30 September 2023, and 31 March 2024.
  • Lobbying opportunities to provide data to Government on the impact on the bill:
    • At each review point;
    • In advance of the expiry date of the bill;
    • In advance of each point for extension.
  • Potential the cap could continue beyond 31 March 2023,
    but this could be at a higher level than 0%.
  • Potential to provide data on more appropriate variable limits
  • Ongoing short-life working group between social landlords
    and the Scottish Government.
  • Opportunity to contribute data to working group discussions
  • Proposed variations in the cap applicable to private
    rentals and social housing    , suggestions this may be
    decoupled in March.
  • Opportunity to lobby for more variation in limits applicable to different sectors
  • Reporting requirement re Scottish Government next steps
    in end-period report for 31 December 2022 for
    social housing associations.
  • Opportunity to lobby for provisions to be removed from the social housing sector or the rate to be modified.
  • Further measures proposed in the Housing Bill to
    supplement housing provision and encourage investment.
  • Lobbying opportunities in anticipation of the Housing Bill and at the point laid before Parliament.

Eviction Moratorium

Provisions

  • A temporary ban on evictions except in specified scenarios.
  • Exceptions include the following for private residential tenancies:
    • Intent to sell property in order to alleviate financial hardship
    • Property to be sold by lender
    • Intent to live in property to alleviate financial hardship
    • Tenant not occupying let property
    • Criminal behaviour
    • Anti-social behaviour
  • Exceptions include the following for social housing tenancies:
    • Rent arrears of £2,250+
    • Conviction for certain offences
    • Tenant absent or not occupying
    • Anti-social behaviour or harassment
    • Nuisance, annoyance, or harassment
  • Substantial arrears added as a ground for eviction during the moratorium (6 months rent for private residential tenancies, or £2,250 for social tenancies).
  • Exceptions consist of the following for student tenancies:
    • Criminal behaviour
    • Anti-social behaviour

    These are the only applicable grounds for evictions from student tenancies.

  • Updates to civil damages for unlawful evictions – damages payable are to be between 3 and 36 months rent.
  • Enforcement of evictions for other reasons cannot be carried out for 6 months from the date of the decree, or the expiry of the legislation, whichever is earlier.
  • Enforcement can be carried out in the circumstances of the eviction grounds set out within the act.
Future Engagements/ Next Steps  
  • Review points every 3 months.
  • End date at 31 March 2023.
  • Extendable to 30 September 2023, and 31 March 2024.
  • Lobbying opportunities to provide data to Government on the impact on the bill:
    • At each review point;
    • In advance of the expiry of the bill;
    • In advance of each point for extension.
  • Suggested structural updates in proposed Housing Bill,
    including homelessness prevention duty and potential
    private sector regulator.
  • Lobbying opportunities in anticipation of the Housing Bill and at the point laid before Parliament.

Rent Adjudication

Proposals

  • Provides the framework for new adjustments to adjudication process after rent cap provisions are removed.
  • Aims to avoid a cliff edge increase when rent cap provisions end.
  • Provisions in place until 31 March 2024, extendable until 2025.
  • Allows measures to be put in place to change the metric by which permitted rent is calculated, or to prevent the rent officer raising rent above the level suggested by the landlord.
  • Changes will be made through subsequent legislation.
  • Landlords can apply to raise rent beyond the rent cap where prescribed property costs have increased, these include mortgage payments, insurance premiums, and service charges. This can be by no more than 50% of the prescribed property cost increases. This can be by no more than 3% of the rent overall.
  • If increased rent is referred to adjudicator, updated rent is not payable until a decision is made by the rent officer re increase beyond the permitted rate.
Future Engagement/ Next Steps  
  • End date at 31 March 2024
  • Extendable to 31 March 2025
  • Review dates every 3 months
  • Lobbying opportunities to provide data to Government on the impact on the bill:
    • At each review point;
    • In advance of the expiry of the bill;
    • In advance of each point for extension
  • Sets out framework for updates to adjudicators role, implementation will be subject to future legislation and
    debate.
  • Lobbying opportunities in advance of future legislation,  opportunities to suggest amendments and contribute talking points for debate.

Our Team

As well as advising on all elements of your Scottish and UK Real Estate transactions, the Burness Paull team can help you with developing briefing packs for MSPs, preparing amendments, providing training on the parliamentary process and preparing materials for the committee process. Burness Paull is one of Scotland’s leading law firms for property, parliamentary, and public law.


For guidance on the impact of the bill’s provisions, contact Peter Chambers and Hazel Moffat.

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