Committee
Infrastructure and Capital Investment Committee 10 February 2016
10 Feb 2016 · S4 · Infrastructure and Capital Investment Committee
Item of business
Private Housing (Tenancies) (Scotland) Bill: Stage 2
Amendment 24 will join up the process of a tenant applying for a written tenancy agreement with the process of applying for an order for payment against the landlord to ensure that a tenant does not go away with a financial award but still without any written terms for his or her tenancy. Section 14 enables a tenant to apply to the tribunal to make an order against a landlord who has failed to provide the tenant with the necessary tenancy information, including written terms of the tenancy, which are required under section 8. An order can require the landlord to pay the tenant up to a maximum of three months’ rent. Amendment 24 will ensure that where the terms of the tenancy are not set out in writing between the parties, an application for a payment order under section 14 can be made only in conjunction with an application to the tribunal to draw up written terms under section 12. 10:00 On amendment 56, where a tenant disputes a landlord’s proposed rent increase, the bill provides for how the rent officer or the tribunal is to calculate the open-market rent of the property. The provisions state that that should include an assumption that the property is being let by a willing landlord. The law assumes that a willing tenant is implied in any calculation of open-market rent. However, for the avoidance of any doubt, amendment 56 states explicitly that there is also an assumption that the property is being let to a willing tenant. That is something that the Law Society of Scotland called for as part of its stage 1 evidence to the committee. On amendments 139 and 140, section 61 sets out definitions for a number of terms that are used throughout the bill and includes, among other things, a definition of “rent”. Amendment 139 confirms that “rent” means any sums paid periodically by the tenant to the landlord, rather than one-off payments. Amendment 140 clarifies that rent includes sums payable in respect of services, repairs, maintenance or insurance. Such payments are included to ensure that sums cannot be charged that fall outwith the definition of rent in a way that would undermine the protections that we are introducing in relation to rent increases. On amendment 141, the bill contains amendments to other acts that refer to the day that section 1 comes into force. For now, that is unavoidable because the actual date of section 1’s coming into force is to be set later by regulations. Those amendments in their present form will put those reading the amended acts to the trouble of having to find the commencement regulations to see on what day section 1 was actually brought into force. To make life easier for those looking at the amended acts online or in updated print versions, amendment 141 will allow regulations to insert the actual date that section 1 comes into force. Similarly, amendment 141 will allow regulations to remove section 6(5), with effect from the day that section 1 comes into force because on that day section 6(5), which applies only before section 1 comes into force, will become irrelevant. Amendments 21 to 23, 25 to 29, 42, 83, 129 and 134 will fix minor drafting points. I move amendment 21. Amendment 21 agreed to. Section 12, as amended, agreed to. Section 13 agreed to. Section 14—First-tier Tribunal’s power to sanction failure to provide information Amendments 22 to 25 moved—Margaret Burgess—and agreed to. Section 14, as amended, agreed to. Section 15—Meaning of notice period in sections 12 and 14 Amendments 26 to 29 moved—Margaret Burgess—and agreed to. Section 15, as amended, agreed to. Section 16 agreed to. Section 17—Frequency with which rent may be increased
In the same item of business
The Convener
SNP
Our next agenda item is to consider the Private Housing (Tenancies) (Scotland) Bill at stage 2. We have a large number of Scottish Government and non-Governm...
The Convener
SNP
Under group 1, we will consider the meaning of private residential tenancy. Amendment 1, in the name of the minister, is grouped with amendments 2 to 17, 80 ...
Margaret Burgess
SNP
The amendments seek to amend schedule 1 of the bill, which outlines the types of tenancies that cannot be private residential tenancies. The Scottish Governm...
Alex Johnstone (North East Scotland) (Con)
Con
I welcome the amendments in this group. I would like the minister’s views on a couple of minor points in relation to the changes in student accommodation. ...
Margaret Burgess
SNP
In answer to your first point, we have been clear that we are talking here about purpose-built student accommodation that has nomination rights with universi...
David Stewart (Highlands and Islands) (Lab)
Lab
I generally accept the minister’s amendments, but could she look carefully at having a review of student accommodation in the future and perhaps make a commi...
Margaret Burgess
SNP
In response to David Stewart, we have made a clear commitment that, if the bill passes, we will review how it works for the student sector, both in purpose-b...
The Convener
SNP
Amendment 150, in the name of David Stewart is grouped with amendments 151, 18, 19 and 20.
David Stewart
Lab
The purpose of amendment 150 is to ensure that no one can contract out of the statutory terms. In general, my amendments are supported by Shelter Scotland, C...
Adam Ingram (Carrick, Cumnock and Doon Valley) (SNP)
SNP
I will speak exclusively on amendment 151. The purpose of amendment 151 is to make the duty to inform a landlord about others staying in the property more ...
Margaret Burgess
SNP
Schedule 2 of the bill already provides that it is to be a statutory term of every private residential tenancy that the tenant is to tell the landlord about ...
David Stewart
Lab
I hear what the minister says, and I ask that she considers the issue in advance of stage 3 and gives us an opportunity to consider the issue again at that s...
The Convener
SNP
The next group of amendments are technical, drafting and consequential amendments. Amendment 21, in the name of the minister, is grouped with amendments 22 t...
Margaret Burgess
SNP
Amendment 24 will join up the process of a tenant applying for a written tenancy agreement with the process of applying for an order for payment against the ...
The Convener
SNP
The next group of amendments are those concerning the effective date of rent increase notice. Amendment 30, in the name of the minister, is grouped with amen...
Margaret Burgess
SNP
Section 19 of the bill provides that a landlord must give a tenant at least three months’ notice before the landlord can increase the rent. Amendment 33 reco...
Alex Johnstone
Con
I have a brief question arising from the minister’s explanation. How will you confirm receipt of a rent increase notice?
Margaret Burgess
SNP
There are regulations about when a notice is received when it is sent by special delivery. That is laid down not in the bill but in interpretation legislatio...
The Convener
SNP
The next group is on restriction on diligence. Amendment 31, in the name of the minister, is the only amendment in the group.
Margaret Burgess
SNP
Amendment 31 will introduce a restriction on the debt recovery action that a landlord can take against a tenant for unpaid rent. It will also apply to a liab...
The Convener
SNP
We now move on to amendments on modification of rent increase notice. Amendment 36, in the name of the minister, is grouped with amendments 37 to 39.
Margaret Burgess
SNP
I will speak to all the amendments in the group. As I said when we discussed group 4, section 19 of the bill provides that a landlord must give a tenant at l...
The Convener
SNP
The next group is on a tenant’s right to refer rent. Amendment 152, in the name of David Stewart, is grouped with amendment 153.
David Stewart
Lab
The amendments refer to a tenant’s right to refer rent. The bill does not allow a tenant to refer the rent to a rent officer until they have received a rent ...
James Kelly (Rutherglen) (Lab)
Lab
I speak in support of David Stewart’s amendments 152 and 153. It is important that tenants can expect rents to be set at a fair level. It cannot be right tha...
Margaret Burgess
SNP
Section 20 provides tenants with the ability to refer a rent increase to a rent officer in order to protect tenants from unreasonable rent increases that tak...
David Stewart
Lab
I stress that the person who would be arbitrating on the rent increase would be the rent officer that the Government has set up. We are not talking about som...
The Convener
SNP
The question is, that amendment 152 be agreed to. Are we agreed? Members: No
The Convener
SNP
There will be a division. For Kelly, James (Rutherglen) (Lab) Stewart, David (Highlands and Islands) (Lab) Against Adamson, Clare (Central Scotland) (SN...
The Convener
SNP
The result of the division is: For 2, Against 5, Abstentions 0. Amendment 152 disagreed to. Amendment 153 moved—David Stewart.