In October 2022 the Scottish Parliament introduced emergency legislation with the purpose of assisting social and private renters with the cost of living crisis. The Cost of Living (Tenant Protection) (Scotland) Act 2022 introduced a temporary, variable rent cap and a temporary moratorium on evictions (applicable to the majority of eviction grounds) until at least 31st March 2023.
It is a requirement of this legislation that it is reviewed regularly. On 12th January 2023 Scottish ministers published its first report to assess the continued necessity and proportionality of the provisions.
Report recommendations
Eviction moratorium
The first report on the Cost of Living (Tenant Protection) (Scotland) Act 2022 concludes that the eviction moratorium remains a proportionate and necessary measure in both the private and social rented sectors. Accordingly, we can anticipate further regulations extending this provision until at least 30th September 2023 (with scope for a further extension until 31st March 2024).
It is important to highlight that the eviction moratorium does not prevent landlords raising actions for eviction. The effect of the moratorium is to delay enforcement of an eviction for a period of six months in certain circumstances. However, where a tenant has accrued substantial rent arrears (equivalent of six months’ rent), or is behaving in an antisocial manner, the moratorium does not apply.
Rent cap
The first report on the Cost of Living (Tenant Protection) (Scotland) Act 2022 considered that the rent cap should be brought to an end in the social sector after agreement was reached, following discussions between the government and the housing organisations representing registered social landlords across Scotland. Regulations have since been published to give effect to this proposal.
Notwithstanding the social sector position, the report considered that the rent cap provisions for the private rented sector of 0% (or 3% where the landlord has seen an increase in prescribed property costs) remained necessary.
Despite the content of the report, on 19th January 2023 Scottish ministers announced the intention to increase the rent cap to 3% or 6% (where the landlord has seen an increase in prescribed property costs) from 1st April 2023.
What next?
The proposed continuation of the rent cap is disappointing news for those in the private rented sector. A coalition of representative bodies, namely the Scottish Association of Landlords, Scottish Land & Estates and Propertymark are seeking a judicial review of the legislation.
In the meantime, we await the second report due in early April 2023 for the position of the Scottish ministers going forward. For present purposes, it appears private landlords will be required to wait at least three months before any rent increase notice can be served and another three months before such increase can take effect.
For more information or advice, please contact us.
