Local Government, Housing and Planning Committee 13 May 2025
I lodged amendment 102 to strongly show what my party believes should be contained in the provisions on exempt properties, in case my amendments to remove part 1 of the bill should not be agreed to. Of course, I lodged the amendment before the consultation on exemptions on rent controls went live.
The bill provides that
“The Scottish Ministers may by regulations define, for the purpose of section 9(3), what is an exempt property.”
Amendment 102 would alter the provision from “may” to “must”. I suspect that the cabinet secretary will ask members to vote down the amendment if pressed. However, I still have concerns about the process of exemptions, and moving the amendment provides me with the opportunity to put them on record.
Not including exemptions in primary legislation and setting them out in secondary legislation means that there will be fewer opportunities for MSPs to debate and expand the list of agreed exemptions following the conclusion of the exemptions consultation. At best, the housing sector, as it stands, will need to rely on the cabinet secretary deciding what exemptions are preferable, which means that some important options could be left out—although I hope not. That is why several colleagues have lodged amendments to this section of the bill. I do not believe that the provisions in the bill are the best way to move forward. I would have preferred to have seen exemptions in primary legislation, which would have given a stronger signal to the sector that protections from rent controls will be in place. Secondary legislation is also easier to amend.
I seek reassurance from the cabinet secretary that the issue of exemptions will be taken seriously and that all responses from stakeholders will be considered when the Scottish Government begins to scrutinise consultation findings. The sector needs clarity. I hope that the cabinet secretary understands how important this section is to the future of the housing sector and to securing future investment to build more homes.
10:45The issues that we debated last week are also important. As Graham Simpson outlined, following last week’s committee meeting, I had the opportunity to meet the cabinet secretary and to have initial discussions on how we move forward with the legislation, particularly with regard to exemptions and other issues that were debated last week. We need to reflect on last week’s meeting as we move forward. The bill is complex, and it is important that the Government outlines its position on the issues that members raise at stage 2.
I go back to the exemption element of the bill. My party does not believe that rent controls are the answer. We need to ensure that all groups that will be impacted by the legislation are taken into consideration, and that includes those who provide homes in the private rented sector.
Amendment 103 would ensure that social landlords or a subsidiary of registered social landlords are exempt from rent controls. I think that this amendment is a no-brainer, and I hope that social landlords will be at the top of the Scottish Government’s list for exemptions. Social landlords provide affordable housing to many people across the country, and, in the case of councils, rents are set by councillors. The rents accrued are usually placed into a budget that is invested in carrying out repairs, maintenance and aesthetic work relating to exterior and interior design, which benefits tenants as well as the reputation of councils.
To expand on the point that I have raised previously, my concern about exemptions is that, in many cases, the housing sector will need to wait until the consultation has concluded, the findings have been analysed and the results have been brought forward in a plan. That could further stifle development, which is not what we want to see. It is imperative that members think about that today when looking at exemptions and consider whether they believe that, out of the list of amendments before us, some of them have merit and could or should be included in the bill.
Amendment 106 complements amendment 103 by defining what registered social landlords and their subsidiaries are. Amendment 104 relates to an exemption from rent controls for properties with cladding or reinforced autoclaved aerated concrete. Again, this is a self-explanatory amendment, which complements my colleague Graham Simpson’s amendment, whereby landlords who incur unintended and considerable costs to remediate buildings with cladding or RAAC should be exempt from rent controls. I lodged amendment 104 due to concerns that we have raised and had debates about in the chamber and in the committee. We still do not know how many properties are affected by those materials, and landlords will have to foot the bill to ensure that the properties are safe for tenants to use. The only way that some landlords would be able to recoup some of that money would be by raising rents at a sensible rate. Therefore, through this amendment, I urge the Scottish Government to consider such properties when looking at exemptions. I am certain that that aspect will form part of the consultation responses that the Government will receive.
Amendment 105 relates to the situation where landlords are carrying out works to make a property energy performance certificate compliant. Issues that relate to that have been discussed in the committee. Although we have yet to see what the EPC consultation will conclude, landlords are considering how best to improve their properties. Again, that work comes at a substantial cost, especially with regard to decarbonising homes and particularly in rural areas. Therefore, I hope that the cabinet secretary is sympathetic to my amendment, which encourages landlords to act responsibly for the benefit of achieving net zero but that also demonstrates an understanding of the costs that are associated with that work. There is a consultation under way to review the EPC system. Although that is welcome, it comes at a conflicting time, given that we are considering the Housing (Scotland) Bill. It might have been better to have concluded the EPC consultation first, because that could form part of an exemption in this legislation.
Amendment 134 would create an exemption from rent controls for smaller landlords—for example, a landlord who has no more than two other let properties. The reason for the amendment is to ensure that smaller landlords do not continue to leave the market because of rent controls. This is a measured approach, and I hope to see it form part of the work that will follow the consultation.
Amendment 329K is another important exemption that the Scottish Government needs to consider. Charities such as Right There are working to prevent people from becoming homeless and separated from loved ones. It works alongside the private rented sector to secure homes and to prevent people from becoming homeless, and its end goal is to ensure that every person has somewhere safe to call home. As we have heard from other members previously, landlords are often demonised, but this is another exceptional example of work that they undertake to provide people with a home but also to work alongside our incredible charities who serve to help and support people who need that. I hope that the feedback that is received in the consultation includes that particular sector, as I would not want it to be left out of the list of exemptions.
On amendment 109—I will double check that I have not got ahead of myself. Yes, I went too far ahead. I will leave my remarks there, as I believe that I will come back in to talk to Edward Mountain’s amendments.
I move amendment 102.