Scottish Housing Bill Passes Stage Two As Rent Cap Amendment Approved
The Scottish Housing Bill has passed stage two of scrutiny by a cross-party committee of MSPs.
More than 600 amendments were proposed, one of the highest totals for any legislation in the Scottish Parliament’s history.
One of the amendments agreed during stage two will allow rents in rent control areas to rise in line with inflation plus 1%, capped at a maximum of 6%.
Provide Certainty For Landlords
Under the Scottish Housing Bill, long-term rent controls will be introduced through designated rent control areas (RCAs). Councils must assess local rent trends and report to ministers, who will decide on RCA status.
One amendment, backed by the Scottish Association of Landlords (SAL), allows rents in these areas to rise with inflation plus 1%, up to a maximum of 6%.
SAL says this amendment will provide certainty to landlords and investors that rents will not be frozen or fall in real terms.
Scottish Association of Landlords, chief executive, John Blackwood, said: “The amendment was agreed to on the back of SAL’s lobbying work and the Housing Minister stating at SAL’s Scottish Letting Day conference that landlords have the right to make a “return” on their investment.
“Having secured an amendment to ensure that rent increases in RCAs can keep pace with inflation, SAL is now focusing on ensuring that landlords who have kept their rent below market value can reset the rent to market value between tenancies in RCAs.”
“SAL has been successful in having this proposal included in the consultation and it’s important that members respond to the consultation and give it their support.”
The Scottish Government is currently running a consultation on rent control exemptions. Landlords in Scotland can take part by submitting their views before the deadline on 18 July by clicking here.
Social Justice Secretary Shirley-Anne Somerville says the Scottish Housing Bill provides clarity over rent controls.
She said: “The Housing Bill will play an important role in our efforts to tackle poverty by keeping rent affordable and ensuring people can stay in their homes by securing tenancies.
“Our amendments on rent control not only provide certainty for tenants but also provide more clarity to the housing sector on what our rent control proposals will look like, giving investors confidence to continue to support housebuilding in Scotland.”
Awaab’s Law To Be Introduced
Ms Somerville adds that Awaab’s Law will be implemented in Scotland, requiring social housing landlords to take action on damp and mould.
She said: “We have also introduced plans to implement Awaab’s Law which will mean everyone can have the right to live in a warm, safe and secure home free from disrepair.
“Scotland has led the way in protecting tenants and providing rights for people threatened with homelessness.
“The Housing Bill will provide even greater protection, so I am pleased the Committee has completed its Stage 2 scrutiny and I look forward to working with Members across the chamber as the legislation goes through the final Stage 3 process.”