Local Government, Housing and Planning Committee 20 May 2025
I am happy to carry on having these conversations with Maggie Chapman in the run-up to stage 3 if she thinks that there is a flaw in what is being suggested by the Government at stage 2, or a gap in the proposals that would create problems for tenants. I have tried to set out that we believe that it is important that there is a process in place that is based on the rent cap and does not have a subjective process attached to it. However, with that caveat, if there are further discussions that we can have ahead of stage 3, I would be happy to carry on with those. The Government has been clear about the importance of the rent cap in providing clarity to landlords and tenants.
Amendment 139, in the name of Emma Roddick, and amendment 238, in the name of Maggie Chapman, would both require a rent officer to impose a financial penalty on a landlord that would require the landlord to pay a sum to the tenant if the rent officer were to find that a rent increase notice that was referred to them for verification proposes an increase above the level of the rent cap. The amendments would provide for different financial penalties, either three times the amount that was requested by the landlord above the rent cap or an amount of £10,000.
Amendment 140, in the name of Emma Roddick, and amendment 239, in the name of Maggie Chapman, are similar. The amendments relate to cases in which a landlord or tenant refers a rent officer’s determination under section 43M of the Private Housing (Tenancies) (Scotland) Act 2016 for review and the rent officer finds that the proposed rent is above the level of the cap. In those circumstances, the rent officer would be obliged to issue an order for the landlord to pay a penalty to the tenant. The amendments would provide for different financial penalties: either three times the amount or an amount of up to £10,000.
The amendments do not include a defence of reasonable excuse for a landlord, which may have included making a genuine error. There would also be no right of appeal to an independent impartial tribunal, nor would there be discretion for the rent officer to not impose a penalty when they consider that a penalty is not appropriate.
In addition, rent service Scotland is a non-judicial body and rent officers are arguably not equipped to make a judgment on the culpability of a landlord or on the appropriate level of penalty. As such, there would likely require to be a further level of consideration, potentially by the First-tier Tribunal, which would create a far more complex and costly process than is set out in the amendments.
Although I have concerns about the details of the amendments, which mean that I cannot support them, I understand the concerns that the members are seeking to address through them. I urge Emma Roddick and Maggie Chapman not to move their amendments. Instead, I offer to work with them, similar to my offer on amendments 137 and 237, which were debated in an earlier group. I would be happy to discuss the issues further, ahead of stage 3, with a view to reaching an agreement on what might be appropriate. I hope that that would address the concerns that they have quite rightly raised in committee today.
Finally, amendment 240, in the name of Maggie Chapman, would require the First-tier Tribunal to impose a financial penalty on a landlord, ordering them to pay a sum to the tenant if the tribunal finds that the initial rent under the tenancy was set too high or that the first rent increase was introduced too early. The penalty would be up to £10,000. Again, there is no defence of reasonable excuse for a landlord who might have made a genuine error, and there is no discretion for the tribunal not to impose a penalty where it considers that the penalty is not appropriate. For those reasons, I cannot support the amendment, and I urge Ms Chapman not to move it.
I urge Emma Roddick, Rachael Hamilton and Maggie Chapman not to move their amendments in this group and instead to work with me ahead of stage 3 to consider whether we can find consensus on possible changes to penalties on landlords who do not comply with their duties under this part of the bill.