Committee
Local Government, Housing and Planning Committee 28 February 2023
28 Feb 2023 · S6 · Local Government, Housing and Planning Committee
Item of business
Subordinate Legislation
Cost of Living (Tenant Protection) (Scotland) Act 2022 (Early Expiry and Suspension of Provisions) Regulations 2023 (SSI 2023/8)
A longer-term argument can obviously be had—it has played out in the chamber on a couple of occasions—about whether a regulated approach to private renting is compatible with continued investment. Our view, which is also acknowledged in the report on rent control by the cross-party group on housing, is that regulated markets can be attractive to investors. Indeed, we regularly make that case in relation to the long term. If we consider the history of the devolved approach to housing, for example, we have seen a very substantial increase in the size of the private rented sector at the same time as continued improvements in the robustness of regulation. We therefore do not believe that there is a fundamental contradiction between having a well-regulated sector that strikes appropriate balances for tenants’ rights and continued investment in the sector. On current data, it is more of an administrative than a statistical source, but the Scottish landlord registration scheme shows that 340,149 private rented properties were registered in Scotland in December 2022, which is slightly more than the 339,632 that were registered in August, before the introduction of the rent cap. I was told just yesterday that we have now seen the figures for January, which are roughly the same—they are still very slightly, albeit not significantly, up on the August figure. Of course, there will be those who suggest that there is an intention among landlords to leave the private rented sector at some future point. It is fair to say that we hear that in Scotland as well as south of the border. Some of the push factors there have involved tax changes that the UK Government has pursued, which impact on landlords’ profitability throughout the UK. There are severe challenges in the housing system throughout the UK, and severe challenges to affordability. We believe that it is necessary and achievable to strike the right balance between protecting tenants in relation to affordability through regulation and ensuring that we have continued investment in housing supply.
In the same item of business
The Convener
Green
Our second item is evidence on the draft Cost of Living (Tenant Protection) (Scotland) Act 2022 (Amendment of Expiry Dates and Rent Cap Modification) Regulat...
The Minister for Zero Carbon Buildings, Active Travel and Tenants’ Rights (Patrick Harvie)
Green
I appreciate that the full titles of the instruments are a bit of a mouthful. I am pleased to be at the committee to present on the Cost of Living (Tenant Pr...
The Convener
Green
Thank you very much for your detailed opening statement. We have a number of questions; you might well have touched on some of the issues already, but we wil...
Patrick Harvie
Green
As I think that we discussed with a number of members in the debates in the Parliament during the bill’s passage, there are connections between the emergency...
The Convener
Green
Thank you for highlighting the fact that rent adjudication will create a bridge between the current position and your proposals. You touched on the rent cap...
Patrick Harvie
Green
Again, as we debated during the passage of the Cost of Living (Tenant Protection) (Scotland) Bill, we recognise that the two dominant parts of the rented sec...
The Convener
Green
Thank you very much for that response.
Willie Coffey (Kilmarnock and Irvine Valley) (SNP)
SNP
Good morning to you and your team, minister. We heard in committee last week about the below-inflation rent rises that you mentioned, which will provide chal...
Patrick Harvie
Green
The impact has been a subject of concern from the social rented sector, but we have been pleased with our ability to reach agreement with the sector. The ave...
Willie Coffey
SNP
I presume that there has been knocking on your door with requests for consideration of additional resource. Will we keep an eye on the matter and invite some...
Patrick Harvie
Green
Absolutely. The commitment to social housing from the Scottish Government remains very strong. There has always been an understanding that the targets for ne...
Willie Coffey
SNP
Last week, we heard from the North of Scotland Regional Network of Tenants and Residents, which reminded us that the issues are not just about rent but are a...
Patrick Harvie
Green
Yes. I reinforce the point that we have never suggested that the emergency legislation is a solution to every aspect of affordability in the rental market. W...
Miles Briggs (Lothian) (Con)
Con
Good morning to the minister and the officials. The committee has heard from a number of private landlords with regard to investor confidence in the sector b...
Patrick Harvie
Green
A longer-term argument can obviously be had—it has played out in the chamber on a couple of occasions—about whether a regulated approach to private renting i...
Miles Briggs
Con
I do not know whether the Scottish Government has live data on this that the minister could share with the committee. Especially as we approach the September...
Patrick Harvie
Green
As I said in my opening remarks and reinforced to the convener, we believe that we have struck a balance that achieves a degree of parity. Private rented sec...
Miles Briggs
Con
You touched on students, and I want to ask specifically about Edinburgh. As an Edinburgh MSP, I have never known it so bad with regard to the numbers of peop...
Patrick Harvie
Green
We have to continue to engage with the universities around the obligations that they have to look after the students that they choose to attract, whether tho...
Miles Briggs
Con
Have universities contacted the Scottish Government to express their concerns on that issue?
Patrick Harvie
Green
I am not aware of recent contact from the universities on that issue.
Yvonne Gavan (Scottish Government)
Education colleagues are in on-going dialogue with the universities and colleges, but nothing specific has come to us.
Patrick Harvie
Green
Miles Briggs also mentioned homelessness. If we look at the tenures from which homelessness referrals come, there has been an extended period of a number of ...
The Convener
Green
We move on to questions from Mark Griffin, who is online.
Mark Griffin (Central Scotland) (Lab)
Lab
I declare an interest as the owner of a private rented property in the North Lanarkshire Council area. Good morning, minister. You touched on some of my are...
Patrick Harvie
Green
We confirmed fairly recently that we intend to introduce that legislation as soon as we can after the summer recess this year. There are a number of areas w...
Mark Griffin
Lab
Thank you for that answer. The other issue that I want to cover is one that the SFHA raised last week. What is the Government’s view of mid-market rent being...
Patrick Harvie
Green
That is a very good question. We acknowledge that, given the nature of mid-market rent, there are differences not only in rent levels, but in what is include...
The Convener
Green
Annie Wells also joins us online.
Annie Wells (Glasgow) (Con)
Con
Minister, why do you think that extending the evictions pause is necessary and proportionate, given that landlords generally pursue eviction as a last resort...