Patrick Harvie said in January he would seek to extend the cost of living legislation that includes Scotland’s rent cap and moratorium on evictions. Following the Local Government, Housing and Planning Committee’s scrutiny of the proposals to amend the Cost of Living Act, and a majority vote, the Scottish Parliament passed the amended regulations on the 8 March 2023.
During the Committee’s review, Timothy Douglas, Propertymark’s Head of Policy and Campaigns, gave evidence and called to scrap the cap all together, citing it as “damaging”, pushing landlords out of the sector and forcing rents to be increased in between tenancies. Whilst the cap has been extended from the 1 April 2023, a 3% rise has been introduced from what was 0%.
In a recent Propertymark survey, letting agents in Scotland were asked: ‘Do you think the rent cap rise to 3% is enough to cover landlords increasing costs?’ – to which an overwhelming 93% answered ‘no’.
The extension will last until 30 September 2023, but it’s likely there will be another extension until March 2024.
In the meantime, the Scottish Government have set to work on bringing forward the Housing Bill. Propertymark has been invited to government led stakeholder meetings, mainly focussing on rent control, beginning in March until the end of August. With this timetable in mind, we won’t see legislation until the Autumn, maybe later.
All eyes are now on the SNP leadership race
Meanwhile, following the announcement that First Minister Nicola Sturgeon will step down, all eyes are now on the SNP leadership race between contenders Ash Regan, Humza Yousaf, and Kate Forbes.
Finance Secretary Kate Forbes recently conceded that the supply of affordable homes in Scotland is under “immense pressure”.
Speaking on housing, she has also laid out promises to set up a new body for housebuilding to create thousands of homes for sale and rent if elected to succeed Nicola Sturgeon.
Forbes also voiced particular concerns over homes in rural areas which she felt were unaffordable due to a ‘high density of holiday homes’.
Putting forward a possible solution, not too dissimilar to the under-used policies in Wales, she would introduce measures for councils to implement extra council tax on empty second homes in areas where there is a “high density” of holiday homes.
Forbes said: “Housing needs to be regarded as a necessary infrastructure in building a better Scotland and not a privilege out with the reach of so many in our country. A secure, comfortable and low energy home needs to be accessible to all in a future Scotland. We have the people, the materials and the land, we just need the vision, will and organisation.”
New First Minister, new cabinet?
A new First Minister could be the catalyst for a reshuffle of the cabinet. Forbes seems to have some contention with the ideals of the Scottish Greens and there appears to be some questions over whether she would be able to maintain the power sharing agreement should she step foot into Bute House.
Yousaf, however, is far more amenable, stating on the topic: “I think the Green deal has been great for not just the government, but actually we’ve brought forward some really radical reforms. So, I’m a great supporter of it.”
Regan joined Forbes in a promise for housebuilding, recently saying she would deliver an additional 100,000 homes by 2035 supported by the anticipated Housing Bill, with a view to accelerating the planning process.
With a potential for a government reshuffle on the table and a question over the SNP Green relationship, could Patrick Harvie’s position as Minister for Tenants Rights also be up for grabs?
There may also be a question whether a reshuffle or indeed a new First Minister could impact on the promise of a new Housing Bill, said to be introduced after this year’s summer recess.
Speaking on the Bill, Harvie has confirmed it would implement a “national system of rent controls in the private rented sector with appropriate mechanisms for local authorities to introduce local measures and that will be in place by the end of 2025”.
All candidates must bear in mind bringing economic policy and housing policy together, rather than placing them at odds. The recent uplift in the additional dwelling supplement of LBTT is a prime example, a policy which makes investing in property more expensive working nonsensically against aims to bring rents down.
Whomever wins the race, the new First Minister needs to lead a joined-up approach to housing. A grounded focus on tax, fair tenant-landlord policies and energy efficiency measures for the housing stock should be key priorities.
