Hansard

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 Expiry Date) Regulations 2023. As colleagues know, the 2022 emergency act came into force on 28 October last year and, since then, has provided additional protection for tenants in what remain challenging economic times. The act originally ran to 31 March 2023 and has been extended once, until the end of this current month. In June, I published a statement of reasons for the second proposed extension of the emergency act. As part of that report, and in line with the requirements of the act, I set out the intention for the measures in the act to be extended for a further, and final, six months to 31 March 2024. The report provides updated data and economic analysis that shows that the challenging economic position has not yet fundamentally changed and that many households in the private rented sector in particular continue to struggle. For example, according to recent YouGov polling for the Scottish Government, in August 2023, levels of concern in relation to paying rent were twice as high in the private rented sector, at 27 per cent, compared to those in relation to paying rent or mortgages across all tenures as a whole, at 12 per cent. That has not improved since the polling in March 2023. It was recently announced that the energy price cap will reduce, but it is reducing from a very high level, and the positive impact on fuel poverty rates is offset by the UK Government’s decision to withdraw the energy bills support scheme, under which £400 was paid to all households last winter. Meanwhile, the freezing of local housing allowance rates by the UK Government for the third consecutive year is yet another reason why those in lower-income households in the private rented sector who access local housing allowance will find it more difficult to afford rental properties. The picture has changed somewhat since a year ago, but circumstances remain very difficult for many tenants, and many households that are on low and modest incomes continue to feel the strain of cost of living pressures. For those reasons, the regulations seek to extend the application of part 1 of the Cost of Living (Tenant Protection) (Scotland) Act 2022 in its current form—including the rent cap measures for the private rented sector, the eviction moratorium provisions across all rented sectors that the act covers, and other important protections—until 31 March 2024 at the latest. In reaching that position, I have reflected on the views that stakeholders and partners have expressed and I have sought to find the right balance, under the statutory duty, to ensure that the provisions do not remain in place for longer than is necessary in connection with the cost crisis. I also recognise the on-going impacts that the cost crisis is having on some private landlords. The private sector rent cap is set at 3 per cent, but there is a safeguard for landlords, who can alternatively opt to apply to rent service Scotland for a rent increase of up to 6 per cent if their defined, prescribed property costs have increased within a specified period. I know that some landlords are using that safeguard—1,031 of them had submitted such an application to rent service Scotland as of 1 September. I turn to our proposed continuation of the eviction moratorium provisions. Tenants in the private and social rented sectors, and those who live in student accommodation, will continue to benefit from the additional time to find alternative accommodation that the six-month pause in the enforcement of eviction action provides. In addition, they are protected from private landlords seeking to end a tenancy in order to raise rents above the cap, and the provisions reduce unlawful evictions by increasing the level of damages that are payable. As with the rent cap, the eviction moratorium provisions include a number of safeguards for landlords. Those recognise that there are circumstances when enforcement of an eviction order or decree should proceed to protect communities—for example, in instances of serious antisocial behaviour—and to strike an appropriate balance between the protection of tenants and the rights of landlords. In summary, the latest evidence shows that the cost crisis is still very much with us. It is crucial that we continue the remaining protections in the 2022 act beyond 30 September. If the committee agrees to recommend approval, it will remain the case that, for this final period, I will continue to keep the measures under review, to consider their on-going necessity and proportionality and to advise the Parliament through regular reporting—the next report is due to be laid no later than 14 October. I thank the committee for its continued interest in the issue and for its scrutiny of the regulations. I am happy to answer any questions that members have.