Meeting of the Parliament 17 March 2016
Thank you. I welcome the opportunity to speak at stage 3 in support of the Private Housing (Tenancies) (Scotland) Bill. The Infrastructure and Capital Investment Committee, which it is my privilege to convene, consulted widely on the provisions of the bill and made a series of recommendations in its stage 1 report. That has allowed for proper scrutiny of, and further amendment to, the bill’s provisions as it has progressed through its legislative stages.
The bill, which we will pass at decision time this evening, will, I believe, meet the requirements of a modern private rented sector. It balances—or, rather, rebalances—the right of the tenant to feel secure in their own home with the right of the landlord to regain possession of their property. It balances the right of a tenant to take their case to an independent tribunal with the right of a landlord to recover rent arrears. It also balances the need to ensure continued investment in the private rented sector with the right of a tenant to challenge an unreasonable rent increase. All those rights are important, but striking the right balance between them is absolutely critical. I believe that the bill that the Government has brought forward, as amended, is both fair and proportionate.
The committee made it clear in its stage 1 report that it supported the Scottish Government’s intention to create for the modern private rented sector a clearer and simpler tenancy regime that is fit for purpose. The majority of the committee also agreed that the no-fault ground should be removed, and we called on the Scottish Government to continue to work with landlords and letting agents during the bill’s passage to help to ensure that the 16 new grounds strike an appropriate and proportionate balance between tenants and landlords.
A key change that was made at stage 2 is that purpose-built student accommodation that is built by private providers will be exempted from the bill’s provisions, as student accommodation that is provided by further and higher education institutions already is. That change was a direct consequence of the committee’s recommendation.
I would like to associate my remarks with those of previous speakers, including the minister, who have said that in the mainstream private rented sector all tenants should be treated equally.
Another key change is that the balance between mandatory and discretionary eviction grounds has shifted towards there being more discretionary grounds—again, that is in response to the committee’s recommendations. The majority of the committee called on the Government to give further thought to which of the grounds for repossession should be mandatory and which should be discretionary. After stage 2, eight grounds are entirely discretionary, two grounds have mandatory and discretionary elements and the remaining eight grounds are mandatory.
On rent arrears, the committee recommended that the Scottish Government give further consideration to lengthening the three-month period that was allowed in the bill to pay off one month’s rent arrears. The Scottish Government responded by saying that
“more time should be provided for tenants to pay off their rent arrears”
and indicated that it would lodge an amendment. The outcome is that ground 11 relating to rent arrears is now mandatory in more limited circumstances than was previously the case. Specifically, it is mandatory only if the tenant is in arrears by rent of one or more months on the day when the tribunal considers the case.
Another issue was removal of the initial period in cases of domestic abuse. That topic was raised in the committee, which can be pleased that we brought about further amendment to the bill, such that people who are in abusive relationships can leave a tenancy without facing financial difficulties as a consequence.
The bill has also been strengthened at stage 3 in respect of the measures on the death of a tenant and succession to tenancy, which Clare Adamson raised at stage 2. Again, we can be proud of how the bill has been strengthened in that area.
Another key committee recommendation was that operation of the tenancies provisions should be reviewed post implementation. The Government accepted that in its response to our stage 1 report. A number of stakeholders have called for the review to consider in detail how the tenancies provisions on security of tenure are working in practice in order to ensure that that security of tenure is effective for private tenants across Scotland.
I very much welcome that the bill will rebalance the relationship between the landlord and the tenant in favour of the tenant. It will not only safeguard the rights of tenants, but will strengthen those rights while ensuring that we continue to see investment in the private rented sector. I am delighted, for all those reasons, to support the bill at stage 3.
18:07