COST OF LIVING RENT CAP SET TO INCREASE

COST OF LIVING RENT CAP SET TO INCREASE

Landlords

Changes to the Cost of Living (Tenant Protection) Act appear to have been confirmed today

SOURCE: PROPERTYMARK
Today 19 January 2023, Propertymark attended a meeting with Patrick Harvie MSP, the Minister for Tenant’s Rights, regarding the Cost of Living (Tenant Protection) (Scotland) Act 2022.
Subject to the approval of the Scottish Parliament, changes to the Cost of Living (Tenant Protection) Act will mean that from 1 April 2023:
  • if landlords choose to increase private rents, they will be capped at 3%
  • the prescribed costs safeguard for private landlords will be amended, allowing them to apply for increases of up to 6% to help cover certain increases in costs in defined and limited circumstances.
Evictions
  • enforcement of evictions will continue to be prevented for all tenants except in a number of specified circumstances.
  • increased damages for unlawful evictions of up to 36 months’ worth of rent will continue to be applicable.
Other details
  • the rent cap for social sector accommodation will be expired, following a voluntary agreement being reached on an agreed approach to rent setting for 2023/24 that ensures that rents remain affordable but still support continued investment in the sector.
  • the rent cap for student accommodation will be suspended, recognising its limited impact on annual rents set on the basis of an academic year.
Ongoing reporting and monitoring requirements will continue every three months and it is important to remember that this is emergency legislation and therefore can be extended for two additional six-month periods.
At the meeting, Timothy Douglas, Head of Policy of Campaigns, challenged the Minister on the rental data and statistics he and officials are using to monitor the private rented sector – an answer will be provided at a later date.
We also continue to push for the Scottish Government to establish a PRS Working Group as has been done for social rented sector providers.
Finally, we also now know that the Housing Bill will be introduced as soon as possible after Summer recess this year.

Timothy Douglas, Head of Policy and Campaigns at Propertymark, commented “Propertymark has been engaged fully in the development and implementation of the Cost of Living Act, representing our members’ views every step of the way. Whilst rent cap legislation continues to create uncertainty, agents and landlords will welcome a rise to three per cent, but this is clearly not enough. Consequently, we continue to look at all the options with our industry partners to challenge this legislation. The bigger concern is also the SNP and Scottish Green’s desire to push on with permanent rent controls with a new Housing Bill to be produced this year. It is vital that we ensure that the residential property sector in Scotland is investible and that is what Propertymark will continue to do."

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