Private rental accommodation in Scotland will continue to be subjected to restrictions on rent increases and eviction until March 2024. This comes after the Scottish government released short-term emergency measures in October 2020 that ended in September 2021, which limited rent increases and evictions. A set of new powers will allow for these measures to continue until March 2024, once approved by parliament. Private lease rent will continue to be capped at 3% unless landlords request a 6% increase to cover specific costs. Restrictions on evictions will also remain in place for most tenants in the private and social rented sectors, as well as student housing and purpose-built residences, with damages available for illegal evictions up to 36 months’ rent.
Patrick Harvie, Minister for Zero-Carbon Buildings, Active Travel and Tenant Rights, said that these measures are being reviewed regularly to determine whether they continue to be justified, balanced, and proportionate. The focus of this temporary legislation is to provide private tenants with similar protections as enjoyed by social housing tenants. The government is evaluating “how to transition out of the emergency measures” while also assessing how best to reform rental sector policies.
In December 2020, the rent cap was lifted in the social rental sector after an agreement was reached between the sector and the government for increases below inflation. Social income in Scotland rose by an average of 5% in April 2021, according to regulator data.
Scotland is not alone in extending legislation to protect tenants in the wake of the COVID-19 pandemic. Many other countries, including England, have introduced similar provisions to help tenants struggling financially during the pandemic.
Additional piece:
The pandemic has dealt a severe blow to tenants globally. With job losses, reduced working hours, and less disposable income, the plight of renters has become increasingly grimmer. They have largely been at the mercy of their landlords, who are themselves grappling with pandemic-induced financial challenges. Fortunately, Scotland and other governmental entities have recognized the need to step in and provide a safety net for renters facing difficulties.
While the extension of rental housing protections is a welcome development, more needs to be done. Renters not only face increased financial pressures but also lack protections against arbitrary evictions, short notice periods, and poor living conditions. Stricter policies must be put in place to uphold tenants’ rights and provide them with a sense of security.
An essential aspect of such regulatory frameworks is ensuring that both landlords and tenants benefit from them. There must be a balance of interests, such that landlords continue to invest in their properties despite the caps on rent increases—a factor that has contributed to landlord opposition in other countries like the UK. At the same time, tenants must not be left at the mercy of unscrupulous landlords who are willing to cut corners in maintaining properties or evict tenants unfairly.
The financial burden on landlords can be alleviated by gradually transitioning towards renewable and green energy sources. This would help landlords reduce their operating costs while enabling them to maintain attractive rental rates. The government can also provide additional incentives such as tax credits, rebates, or funding for upgrades to energy-efficient appliances and insulation.
In conclusion, the Scottish government’s extension of rent caps and eviction restrictions is a step in the right direction. However, the government must continue to monitor and evaluate the measures to ensure they benefit both landlords and tenants and address renters’ concerns. More significant reform is still necessary to provide long-term stability and security to renters, especially during these uncertain times.
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Private rent increases in Scotland will remain limited and restrictions on evictions could be placed until March 2024, if Parliament approves the latest proposals.
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The Scottish government introduced short-term emergency measures in October last year to limit rent increases and ban evictions.
These were due to expire in September, but now additional powers would allow them to be extended until March next year if approved.
Patrick Harvie, minister for zero-carbon buildings, active travel and tenant rights, said “the need for these measures is being kept under review” and that March was the latest they could be applied under the legislation.
He said the government is currently assessing “how to transition out of the emergency measures.”
While the measures are in place, private lease rent increases will continue to be capped at 3%, unless landlords successfully request a 6% increase to cover certain specific costs.
Enforcement of evictions will also continue to be paused for six months for most tenants, and illegal eviction damages up to 36 months’ rent will continue to apply.
The rent cap was also initially applied to the social rental sector, but the measures were lifted after an agreement for increases below inflation between the sector and the government in December.
Social income in Scotland rose an average of 5% in April, according to data from the regulator.
Eviction protections apply to private and social rented sectors, as well as student housing and purpose-built residence halls.
Mr Harvie said: “As the cost of living crisis continues, these measures provide important support to renters, giving them much-needed stability in their housing costs and additional protections against eviction.
“As the social housing sector has agreed its rents in consultation with its tenants, the focus of this temporary legislation is to provide private tenants with similar protection.
“We know that some homeowners are also affected by rising costs. The option to increase rents by 6% in specific circumstances ensures that landlords who may be affected by the cost of living crisis are able to recoup some of the higher costs associated with their rental property.
“The end date of March 31, 2024 would be as long as the rent cap and eviction protections could last if approved by parliament. The need for these measures remains under review and we will continue to assess whether they continue to be justified, balanced, and proportionate based on the financial pressures faced by homeowners and rented households.
“We are also looking at how to exit the emergency measures, and we continue to listen and work hard with stakeholders to develop and carry out rental sector reform.”
Regulations to extend the Cost of Living (Tenant Protection) (Scotland) Act 2022 have now been put in place and can be viewed here.
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https://www.insidehousing.co.uk/news/rent-limits-and-eviction-restrictions-could-remain-in-place-in-scotland-until-march-2024-81769
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