Private Rented Sector (Rent Cap)

– in the Scottish Parliament at on 25 January 2024.

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Photo of Ross Greer Ross Greer Green

3. I associate the Scottish Greens with the remarks of the First Minister and Anas Sarwar ahead of Holocaust memorial day.

To ask the First Minister whether he will provide an update on how the Scottish Government will continue to protect tenants in the private rented sector after the expiry of the rent cap under the Cost of Living (Tenant Protection) (Scotland) Act 2022. (S6F-02735)

Photo of Humza Yousaf Humza Yousaf Scottish National Party

The Scottish Government has led the way—we are far ahead of any other part of the United Kingdom—in protecting private tenants against rent rises and eviction during the cost of living crisis. We are absolutely committed to supporting tenants when the protections end on 31 March 2024. Yesterday, we laid regulations that will, subject, of course, to the approval of the Parliament, temporarily amend the existing rent adjudication process for a period of 12 months. That will help to protect tenants from excessively large rent increases that could be experienced if there is a move back to open-market rent in a single step, while enabling landlords to continue to reinvest in the private rented sector. The Minister for Zero Carbon Buildings, Active Travel and Tenants’ Rights has written to the lead committee on the matter with further details.

Photo of Ross Greer Ross Greer Green

I thank the First Minister for that answer and for highlighting that the emergency rent protections in Scotland have been far ahead of any other measure in the UK. Scotland will continue to play that leading role when long-term rent controls are introduced very soon under the forthcoming housing bill.

Some tenants who are watching today may, however, be receiving rent increase notices right now that are well above the 3 per cent cap. Can the First Minister reassure tenants that the rent cap remains fully in place until 31 March and that any tenant receiving a cap-busting rent increase notice before then should challenge that rise? Further to that, what is the Scottish Government doing to ensure that tenants know about, and are able to use, their rights?

The First Minister:

Yes, I can confirm that the emergency rent cap remains in place until the end of March, so any rent increase notice that is issued before 1 April is very much subject to that cap, even if the increase will not apply until after that date. If a tenant receives a rent increase notice above that, they should refer it to rent service Scotland and rent will be set in line with the cap.

I fully agree that tenants need to know what their rights are and how to act on them. A national renters rights marketing campaign will launch very soon, highlighting existing rights and the changes when the emergency measures end. That will include online guidance and tools to help people to understand how the changes affect them specifically.

The Government has taken clear, bold action to support people through the cost crisis. We are determined to build on that, and our forthcoming housing bill will set out proposals for longer-term reform of the rental sector. We are committed to working not just with tenants—which is crucial—but with responsible landlords and other key stakeholders to ensure that the legislation delivers reform that works in reality.

Photo of Pam Gosal Pam Gosal Conservative

The Scottish National Party-Green rent cap has not only failed to tackle the housing emergency; it has exacerbated it. Rents in Scotland have increased by more than 14 per cent despite the SNP-Green rent cap and, as a result of the cap, Scotland is the only part of the UK in which the number of properties sold by landlords has gone up. That ill-thought-out policy has hindered mobility, caused enormous price hikes when people move and reduced the availability of housing by driving landlords out of the market. Does the First Minister agree that his Government’s interferences in the market have been nothing short of a disaster? Will he scrap the cap?

The First Minister:

My goodness—I think that that is the most Conservative contribution that I have ever heard in the chamber. How dare the Scottish Government interfere in the middle of a UK Government cost of living crisis to help tenants because of the economic damage that the UK Government has caused? How dare we have the temerity to protect renters because of the economic vandalism of Pam Gosal’s party?

Of course Pam Gosal’s contribution does not bear out the reality or the facts. If we look at—

The Presiding Officer:

I will stop you there, First Minister. I am aware of members clearly having conversations with other members across the aisles. That is totally unacceptable during First Minister’s question time.

Please continue, First Minister.

The First Minister:

If we look at the facts, we see that the latest Scottish landlord register data shows that the number of registered properties for rent in Scotland between August 2022 and November 2023 increased.

We will, of course, work with responsible landlords, tenants and other stakeholder groups. However, I say to Pam Gosal that I will never make an apology for making sure that we are on the right side of this argument.

Photo of Kaukab Stewart Kaukab Stewart Scottish National Party

The new rent adjudication rules, which empower private tenants to challenge unreasonable rent hikes, are welcome. However, for the proposed transition to work as intended, tenants need to be fully informed of those rights. Will the First Minister expand on how the Scottish Government intends to ensure that renters and private landlords throughout Scotland understand the system that will be in place from April?

The First Minister:

I absolutely agree with that. It is vital that tenants and landlords are made aware of the changes that will come into place from 1 April. Tenants’ understanding their rights and how to act on them is a crucial part of the changes that we are making to the rent adjudication process working effectively in practice. As I mentioned in response to Ross Greer’s question, we are working on a range of awareness-raising activities and the provision of clear guidance to support people through the transitionary period.

A national renters’ rights marketing campaign will be launched very soon, and we are working on an online rent increase calculator to assist landlords and tenants in establishing what rent could be charged from 1 April, should it be subject to adjudication.