Private rented sector 'well out of balance' after Scottish bill passed

The Bill makes various emergency changes to tenancy legislation, including the introduction of a freeze on rents
The Bill makes various emergency changes to tenancy legislation, including the introduction of a freeze on rents

The 'disproportionate' shift in the balance between tenant and landlord rights will lead to reduced availability of homes, Scottish rural businesses have warned.

Scottish Land & Estates (SLE), which represents some of the largest providers of housing in rural Scotland, made the comments following the Scottish parliament’s vote to pass the Cost of Living (Tenant Protection) (Scotland) Bill.

The Bill makes various emergency changes to tenancy legislation including the introduction of a freeze on rents as well as a moratorium on evictions.

This cap, which applies to in-tenancy rent increases, has initially been set at 0% from 6 September 2022 until at least 31 March 2023.

Ministers have the power to vary the rent cap while it is in force. The measures can be extended over two further six-month periods.

Scotland's Tenants’ Rights Minister, Patrick Harvie said: “With this Bill now set to become law, tenants in the social or private rented sector, or in student accommodation, will have stability in their homes and housing costs.

“I’m hugely grateful to MSPs for scrutinising and agreeing this legislation this week, ensuring these protections can be brought in with the urgency that this crisis demands.”

But Sarah-Jane Laing, chief executive of SLE, said the rights of landlords and the rights of tenants needed to be "properly balanced to ensure all parties have confidence in the tenancy system".

“Sadly, the Bill passed in parliament today represents yet another seismic shift from that balance," she warned.

“There is already a scarcity of housing available for rent in many areas already, with a huge demand for any available property.

"This is coupled with regulations such as energy efficiency legislation for tenanted properties which is costing huge sums of money – especially in rural areas – and is leading to huge costs for property owners or the choice for landlords to leave the sector altogether."

She added: “Whilst never completely perfect, even relatively recently we had a well-functioning private rented sector that in most cases worked for tenants and landlords."

The Scottish government published its Scottish Household Survey 2020 which showed that 94% of households in the Private Rented Sector were very or fairly satisfied.

Ms Laing said the SLE did not share the Scottish government’s views that the interests of tenants and landlords were balanced within this emergency legislation.

"More properties are likely to be withdrawn from the market in the short and medium term and tenants will lose out as choice diminishes," she said.