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]
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 Cost of Living (Tenant Protection) (Scotland) Act 2022 to have a direct impact on rental incomes for a period of 18 months. Now that we are at the point of proposing the extension for the final six months, the effect of a decision today cannot possibly impact on the rental income of properties that are subject to investors’ decisions at the moment. Investors’ decisions at the moment would be about the supply of homes that are available to generate rental income in the future, after the temporary provisions in this legislation have ceased. Some of the wider concerns of institutional investors are around the Scottish Government’s longer-term proposals for rebalancing the private rental sector and, in particular, for a new national system of rent controls. We are keen to continue to work closely with the sector, which includes engagement that I and Paul McLennan as Minister for Housing have with investors as well as developers as we work through the process to determine the shape of the housing bill that will be introduced next year to give effect to that commitment to a national system of rent controls. The impact that we are seeing on rental prices reinforces the need to commit to that work. We need to ensure that affordability is part of our understanding of what adequate housing is and that all people have a human right to adequate housing. We will continue to develop that work in a way that is well informed by the perspectives of tenants, landlords, the people who work with them and investors. Across Europe, the situation that Scotland and the rest of the UK have been in in recent years and decades is unusual. It is a particularly unregulated market in private housing terms. Investors—particularly the bigger institutional investors—make decisions across a wide range of countries and they are well used to making decisions about more regulated and less regulated markets with regard to rental property. Evidence from across Europe is very clear: a well-designed rent control system is entirely compatible with a vibrant housing market and investment in homes made for private rent. We believe that that can be achieved in Scotland as well and that it will be consistent with supplying the quality homes that Scotland needs and achieving affordability, which has been lacking in too many cases.
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.