It has been a busy year on the housing front in Scotland. In early Spring, we saw the temporary measures protecting tenants from rent increases and evictions relating to the Cost-of-Living crisis ending and a housing emergency declared by the Scottish Government, and we’ve seen the introduction of the Housing (Scotland) Bill in Parliament. Whilst the Bill is in its early stages, the intended provisions of the Bill will have significant implications for the housing sector.
The Bill focuses on several key areas and one of those areas is enhanced tenant protections. The Bill establishes “rent control areas” where rent increases can be capped for the private rental sector. This measure allows local authorities to conduct assessments of local housing conditions and recommend whether rent controls should be applied. These controls could potentially cap rents, even at 0%. The measures have been met with concern that with the shortage of rental properties, particularly in rural areas, and by introducing rent controls, landlords could be discouraged from offering properties to rent, which goes against the Government’s aim to tackle the multifaceted housing crisis.
The Bill also seeks to build upon the protections from existing legislative frameworks, such as the Private Residential Tenancy regime, by heightening tenants’ rights in their ability to keep pets, redecorate and exit joint tenancies more easily. This is intended to provide tenants with a sense of ownership and security in their homes.
Another measure for all tenancy types is a mandatory duty on the First-tier Tribunal or Sheriff Court to consider delaying an eviction, where appropriate due to a variety of factors, such as seasonal pressures, adverse personal circumstances, detrimental consequences to health and/or disability, or financial hardship. It is worth noting that there are no limitations suggested to the potential delay which could be awarded. With regards to private tenancies, the Bill also seeks to enhance the damages which may be awarded to tenants where there has been an unlawful eviction by landlords.
Specifically for social landlords, the Bill introduces an “Ask and Act” duty. This will place a duty of inquiry on social landlords to ask about an individual’s housing situation and take necessary action to prevent homelessness. The Scottish Government intends to implement a proactive approach, encouraging early intervention, avoiding a reactive situation when a crisis has developed, and also seeks to invoke local authorities’ statutory duties up to six months ahead of possible eviction. With regards to homelessness and domestic abuse, social landlords will require to develop comprehensive policies to support tenants.
The Bill is far wider than the points outlined above, and whilst the Bill is in its early stages, concerns have already been raised. The legislation is still in consultation, and its final form may evolve as it progresses through the Scottish Parliament. I am sure those in the rented sector will, like me, watch with interest to see how things develop but it will be important for landlords to stay informed about the changes along the way.
