Committee
Local Government, Housing and Planning Committee 12 September 2023
12 Sep 2023 · S6 · Local Government, Housing and Planning Committee
Item of business
Subordinate Legislation
Cost of Living (Tenant Protection) (Scotland) Act 2022 (Amendment of Expiry Date) Regulations 2023 [Draft]
It is worth separating out the rent cap provisions from the eviction moratorium provisions. With the social housing sector—local authority and housing association housing—we reached a different approach on the rent cap. We agreed that approach, taking account of the sector’s concerns and its different nature, such as the way in which rental income is reinvested for public purposes, whether that is for services for tenants, retrofit to improve energy performance or investment in new build. We recognised a range of differences in the way that the private and the social rented sectors operate, and we found that the best solution was to work with the social rented sector to agree a voluntary limit on average rent rises across Scotland. We removed social housing from the fixed absolute rent cap and agreed the voluntary approach. For an average size of property, that amounted to a close monetary equivalence between the increased rent cap after it raised from zero and the voluntary agreement that was reached with the social housing sector. My view is that that has achieved a level of stability for tenants in a way that has been agreed mutually with the sector. Some of the sector’s concerns might be more focused on the eviction moratorium rather than on rent. We believe that, in the current climate, it remains important for people to have the additional time available to them if they are faced with the prospect of eviction. Safeguards remain for social landlords that need to evict someone—for example, that can happen in cases of severe or serious antisocial behaviour. For the most part, social landlords, whether they are local authorities or housing associations, have been very responsible landlords and have never wanted to move to eviction as their first recourse. They seek to achieve better outcomes for their tenants. They have had pre-eviction protocols in place for substantially longer than they have been a requirement in the private rented sector. Therefore, I believe that we still have the right balance when it comes to protection for tenants who might face the prospect of eviction in some circumstances, and protection for landlords, whether in the social sector or the private sector, who, in rare circumstances, have a legitimate need to pursue an eviction order.
In the same item of business
The Convener
Green
Before we turn to the next item, I give apologies for my colleague Mark Griffin. He had a problem getting in and although we thought that he might arrive at ...
Patrick Harvie
Green
It is nice to be back with the committee again. I am pleased to be here to present the Cost of Living (Tenant Protection) (Scotland) Act 2022 (Amendment of E...
The Convener
Green
Thank you for your statement. It is good to hear that you will continue to monitor the situation and look into the proportionality of the measures. We have ...
Patrick Harvie
Green
We continue to keep a close eye on the issue. We are aware of anecdotal evidence that landlords have been talking about it. Some cite the temporary cost of l...
The Convener
Green
Thank you.
Willie Coffey
SNP
Good morning again, Patrick. Interestingly, the Association of Local Authority Chief Housing Officers recommends that you withdraw rather than extend the mea...
Patrick Harvie
Green
It is worth separating out the rent cap provisions from the eviction moratorium provisions. With the social housing sector—local authority and housing associ...
Willie Coffey
SNP
ALACHO said that the measure simply pushes the rent that is due to the end of the process—it is a bigger amount at the eviction point—and does not ultimately...
Patrick Harvie
Green
We were clear when we debated the Cost of Living (Tenant Protection) (Scotland) Bill and took it through the Parliament that, in cases of severe rent arrears...
Willie Coffey
SNP
In some of the evidence, there has been a suggestion that the supply of private rented homes has been adversely affected by the emergency legislation. What d...
Patrick Harvie
Green
Again, I would draw a distinction between anecdotal evidence that is being put about and what we are seeing on the ground. It was only ever possible for the ...
Willie Coffey
SNP
Thank you for the detail in that response, minister.
Miles Briggs
Con
The committee has received evidence about landlords’ increased costs, which have been impacted on by rising interest rates in recent months. What is the Gove...
Patrick Harvie
Green
As I said, we will continue to keep under review the proportionality and necessity of the measures. The next report that I mentioned is due by mid-October; i...
Miles Briggs
Con
Thank you. I will come back to my other questions later.
Pam Gosal
Con
Good morning. As the minister will probably know, the 2022 act has had unintended consequences for both tenants and landlords. We have heard from multiple or...
Patrick Harvie
Green
I do not agree with that characterisation of what the legislation has done. Pam Gosal is right that rent increases between tenancies are not covered by the ...
Pam Gosal
Con
Are you aware that students have been really affected by cases of landlords making prices higher? I know from the Indian student groups and associations who ...
Patrick Harvie
Green
Absolutely. The increase in intra-tenancy rents is significant. It is significant both down south and here, partly because of economic circumstances and part...
The Convener
Green
We move to questions from Ivan McKee.
Ivan McKee
SNP
In the interests of transparency I reiterate my declaration of interests with regard to ownership of rental property and a share of a property rental busines...
Patrick Harvie
Green
That question is hugely important, and Ivan McKee is right to point to that power in the legislation. It allows an adjustment to be made to the rent adjudica...
Yvette Sheppard (Scottish Government)
We are still taking stakeholder views into account and, as the minister has reflected, considering the different ways in which we could amend the adjudicatio...
Ivan McKee
SNP
Do you accept that the longer that goes on, the more uncertainty exists, which makes it more difficult to go forward with investment to increase supply, whic...
Patrick Harvie
Green
Yes. That is why we are keen to ensure that we are hearing from the widest possible range of voices, as we come to a decision. I hope that broad support exis...
Marie McNair
SNP
Following on from Ivan’s questions, I note that some of the evidence that we have received has pointed to the need for the Scottish Government to review and ...
Patrick Harvie
Green
The programme for government includes a commitment to introduce the housing bill to deliver the new deal for tenants, which will include the introduction of ...
The Convener
Green
It is good to get that reassurance. We stood to attention when we heard what was in the PFG. I have a question about joint tenancy loopholes. Living Rent ha...
Patrick Harvie
Green
I share the concern about the matter, although I am not sure that I would use the word “loophole”. The situation is a consequence of the fact that the emerge...
The Convener
Green
Thanks for that. Miles Briggs has a final question.