Meeting of the Parliament 04 October 2022
The impact assessment aims to capture those points, but I will perhaps take the opportunity, if I can, to address that in my closing speech.
I will now go through the provisions in some detail, starting with the rent freeze.
The bill will allow Scottish ministers to set a cap on the level of increase in rents, which will initially be set at zero per cent until 31 March 2023. Under the proposals, ministers will take powers to vary the cap, which will operate separately for the social and private rented sectors. Students in college and university halls and PBSA will also be protected through a zero per cent cap, ensuring that there will be no mid-tenancy rent increases. That will apply to all rent increase notices that are served on or after 6 September 2022.
As I said, we recognise that the cost crisis is also impacting on some landlords. Although the primary purpose of the legislation is about protecting tenants, it is also important to ensure that it reflects landlords’ circumstances. Private landlords will be able to make an application to increase rent for limited prescribed and legitimate costs associated with offering the property for rent where those costs have increased. The increase may be for up to 50 per cent of those costs and no more than 3 per cent of the existing rent. Those percentages may be varied if circumstances justify it.