Emergency legislation approved by MSPs
Tenants will have increased protection from rent increases and evictions during the cost of living crisis under temporary legislation passed by the Scottish Parliament.
The Cost of Living (Tenant Protection) Bill gives Ministers temporary power to cap rents for private and social tenants, as well as for student accommodation. The Bill also introduces a moratorium on evictions.
This cap, which applies to in-tenancy rent increases, has initially been set at 0% from 6 September 2022 until at least 31 March 2023. Ministers have the power to vary the rent cap while it is in force. The measures can be extended over two further six-month periods.
Enforcement of eviction actions resulting from the cost crisis are prevented over the same period except in a number of specified circumstances, and damages for unlawful evictions have been increased to a maximum of 36 months’ worth of rent.
The temporary legislation balances the protections that are needed for tenants with some safeguards for those landlords who may also be impacted by the cost crisis.
Tenants’ Rights Minister Patrick Harvie said: “I am pleased that Parliament has passed this Bill to support tenants through the current cost of living crisis. People who rent their home are more likely to live in poverty or be on low incomes than other people, and many will be anxious about keeping up payments on their homes as their everyday expenses rise.
“With this Bill now set to become law, tenants in the social or private rented sector, or in student accommodation, will have stability in their homes and housing costs.
“I’m hugely grateful to MSPs for scrutinising and agreeing this legislation this week, ensuring these protections can be brought in with the urgency that this crisis demands.”
Housing and homelessness charity Shelter Scotland has broadly welcomed the publication of emergency legislation designed to protect tenants but warns that loopholes allowing social tenants with relatively modest rent arrears to be evicted miss the mark.
The charity has identified three key flaws in the legislation that could lead to more tenants becoming homeless before March 2023.
Two of the loopholes could see private tenants who have never missed a payment being made homeless if their landlord or landlords mortgage lender needs to sell the property.
The third issue relates to an exemption to the eviction moratorium for social tenants with arrears of more than £2,250. Post-covid this is around one third of the level seen in court actions already underway and well below the threshold where most social landlords give up on securing tenancy sustainment plans.
Shelter Scotland said it would be urging MSPs to amend these provisions in the Bill to ensure the promise of protection from rent rises and eviction is delivered for those most at risk of becoming homeless.
Shelter Scotland also highlighted that this Bill will not address the needs of those people already homeless in Scotland, especially the 8,538 children trapped in temporary accommodation.
Shelter Scotland Assistant Director, Gordon MacRae, said: “At Shelter Scotland we want this emergency legislation to work for those most at risk of losing their home.
“We know that the cost of an eviction in the social sector can be around £24,000. So, it makes little sense to set the exemption at a level of rent arrears well below that at which most social landlords would take a tenant to court.
“Deleting this exemption or raising the threshold would recognise the hard work of tenancy sustainment officers, advice bodies and tenants who work to tackle arrears and avoid costly evictions into homelessness.
“Private tenants must not face homelessness when they have paid their rent, but their landlord has fallen on hard times. During this emergency period sales of properties by landlords or lenders should only be permitted with the tenant remaining in their home.
“Where possible social landlords and Scottish Ministers could offer to buy the property where open market sale is not possible with a tenant in place as part of the Scottish Government’s affordable housing programme.
“We believe amending the bill to protect more families from the risk of homelessness is the right priority during this exceptional time.”
Mr MacRae added: “However, when the ink is dry on this Bill, Scotland’s housing emergency will remain just as grim as it was before. This bill does nothing for the record number of children stuck in temporary accommodation, denied their right to somewhere permanent and safe to call home.
“Focus must now turn to the longer-term spending choices of the Scottish Government. To really tackle the housing emergency Nicola Sturgeon needs to deliver Shelter Scotland’s action plan by buying or building 38,500 social homes by 2026, fully funding local homelessness services and guaranteeing anyone who becomes homeless their right to a home.”
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