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0:03 AM, 28th March 2024, About a month ago 8
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The Scottish government has published its new housing bill which claims to prevent homelessness and strengthen tenants’ rights.
Proposals in the new bill include bringing in long-term rent controls for private tenancies and new rights to keep pets.
The Scottish Association of Landlords warns the proposals will “exacerbate Scotland’s housing crisis”.
The new housing bill could allow Scottish Ministers to create rent control areas and cap rent rises during and in between tenancies.
The Housing (Scotland) Bill will also introduce an ‘ask and act’ duty on social landlords and bodies, such as health boards and the police, to ask about a person’s housing situation and act to avoid them becoming homeless wherever possible.
Other reforms include provisions for helping tenants experiencing domestic abuse and allowing tenants the right to decorate their homes.
Tenants’ Rights Minister Patrick Harvie says the new legislation will help create a “healthy private rented sector.”
He said: “A fairer, well-regulated rented sector is good for both tenants and landlords. Tenants benefit from improved conditions and security, while good responsible landlords will thrive when their good practice is recognised by regulation.
“Progressive reform can lead to better conditions and a healthy rented sector overall. I want to keep working with both tenants and landlords to achieve that goal.”
Generation Rent also welcomed the new proposals introduced by the Scottish government.
Ben Twomey, chief executive of Generation Rent, said: “Scotland continues to lead the UK in protecting tenants from unfair and unaffordable rent rises, and this Bill is evidence of what renter campaigns can achieve, with Living Rent deserving a lot of credit.
“The proposed system has the potential to improve the tenant experience in Scotland but it needs to be designed well, so it can be implemented and enforced effectively.”
However, one letting agency warns the bill will be able to difficult to implement in practice.
David Alexander, chief executive officer of letting agents DJ Alexander Scotland, said: “Once again rent control areas are being proposed without evidence that they have ever worked anywhere in the world.
“Will a designated rent control area be an entire council area, specific areas, and how will councils be able to collate all of the relevant data on tens of thousands of rents if the system is to be able to accurately assess rent levels and rent increases?
“Will cash-strapped councils even have the resources to get this information, pull it together into a report and monitor its implementation?”
The Bill states: “If there was a relevant rent level increase during the period of 12 months before the start of the current tenancy, the initial rent under the current tenancy may not be more than the final rent under the immediately preceding tenancy.
“If there was not a relevant rent increase during the period of 12 months before the start of the current tenancy, the initial rent under the current tenancy may not be more than the final rent under the immediately preceding tenancy as increased by the permitted amount for the area in which the property is situated.”
Mr Alexander adds: “This means that the initial rent is key as increases will only be allowable in designated rent control areas at a level decided by Scottish Ministers and this can include a 0% increase. Why would landlords and investors want to be involved in this?”
The Scottish Association of Landlords (SAL) warns the new proposals will create chaos for landlords and tenants.
John Blackwood, chief executive of the Scottish Association of Landlords, said: “Despite the hype and promises from the Scottish government, it seems these proposals will do nothing to help either tenants or landlords in the private rented sector.”
“The rent control proposals, as has been seen in places like Ireland which has similar measures, will see reduced investment and more landlords leaving the sector, leading to higher costs for tenants.”
Mr Blackwood adds many landlords are fed up with the challenges they face.
“The effects of Scottish government policies in the PRS are already being felt, with rising costs reducing supply and placing more pressure on council and housing association properties that they are struggling to cope with.”
“As landlords have said for a number of years, what is needed is a coordinated plan to build more social housing, encourage more investment in private renting and the building of more owner-occupied homes.”
“The approach outlined in this legislation will exacerbate Scotland’s housing crisis and make it harder for people to have the quality home they deserve, in a place they want and at a price they can afford.”
The bill will now begin stage one scrutiny by a Holyrood committee.
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Si BB
10:13 AM, 28th March 2024, About 4 weeks ago
So I have 3 main thoughts about this bill:
1) If a tenant is going to be made homeless as they have not paid their rent - this bill prevents that? I.e. housing for free. I suspect that will not go down well with the property owner or lenders.
- Remember that all evictions are now "discretionary" at tribunal - this was changed 2 years ago.
2) If this did become law, rent caps WILL be enacted by the local councils as this is the only lever they have to pull (and they pull all the other levers given to them) - so rent WILL be capped at 0%. Lunacy.
3) If this was enacted, expect the rental market to split into two markets - those who do so legally and make no money (i.e. departing landlords) and the other - payments via brown envelopes (no tax take here) and the real rogue landlords involved (i.e. the ones who have a "mate with a hammer" when the tenants don't pay their rent) - the tenants have no other housing available, so stuck.
Overall, I do see this getting enacted as is as the SNP/Greens don't listen to anyone.
Car crash imminent....
Si BB
10:17 AM, 28th March 2024, About 4 weeks ago
An item that is missing in this article re the bill is that the Scottish government will receive any unclaimed deposits that have not been claimed within 5 years!
Wow - that is a lot of money!!!
Monty Bodkin
10:22 AM, 28th March 2024, About 4 weeks ago
Back in the real world, landlords react predictably;
https://www.property118.com/scotlands-rent-cap-backfires-with-big-rent-rises-for-tenants/
Scottish renters are facing the steepest annual rent growth across the UK, with an increase of 11.6%.
Andrew Morris
12:29 PM, 28th March 2024, About 4 weeks ago
Rent controls strike me as a government responsibility redefined as a landlord responsibility. It’s the government’s job to step in and provide financial support (social security) where someone is struggling to cover the cost of living. We all pay for this through tax.
If if costs Tesco 45p to produce a can of beans, which they sell for 50p, but some customers can only afford 40p, Tesco should not be forced to sell them for 40p. The government should make up the difference through social security. If they do not, why do they think Tesco would go in selling beans at a loss? Why would they think this was economically possible or morally right? This seems so elementary, I feel like I’m explaining it to a child.
On many of my properties, with Section 24 and high interest rates, I’m already making a loss. If the rent is then capped, I will either sell up or eventually go bankrupt. Why would I work for free? Why would they expect me to? People in employment are paid a minimum wage.
There is a property shortage, investment is needed, but rent controls have the opposite effect, they discourage investment. All of these government measures have a corollary. If the effects are not considered, all they do is create a short-term solution that ultimately leads to a worse situation for the people they’re meant to be helping: the tenants.
Reluctant Landlord
13:40 PM, 28th March 2024, About 4 weeks ago
Reply to the comment left by Andrew Morris at 28/03/2024 - 12:29I am of the opinion now that the government doesn't care about tenants, so a LL using any example to show that tenants suffer from all this lunatic ideas, will simply fall on deaf ears.
They are not interested. Especially coming up to a GE. They see more T voters than LL voters and so chasing the tick in the box. Its about what they say, not what they actually do.
When the gov plays god and make the relationship between the T and LL toxic, all they do is sit back and say how bad the situation is and how they need to get involved, despite them causing the issue in the first place. Who ACTUALLY deals with the fall out of all this at the end of the day? the LL that's who.
People evicted - so what. Council can deal with the problem. LL sells - so what. More tax to HMRC. Anyone can deal with it but the gov.
As long as they have a reason which excuses them from admitting any of this is their fault then that's all good.
T is collateral damage. Government shrugs shoulders. Landlords are to blame!
James Sim
14:01 PM, 28th March 2024, About 4 weeks ago
Who would invest with a bill like this being passed? It will literally kill stone dead the prospects of making money in many areas in the PRS, and in so doing will just exacerbate the who problem of affordable housing. We all know the only solution to a rising population and limited places to live is to physically build more houses? Why is this concept so hard to grasp for these people?
geester24
18:22 PM, 28th March 2024, About 4 weeks ago
They are also passing a bill allowing assisted dying. It might just feel like it.
GlanACC
13:08 PM, 29th March 2024, About 4 weeks ago
I think its a great bill, cos when it is passed and implemented and causes the predictable havoc then maybe Labour (who will win the next GE) will think twice about implementing it in England.