Propertymark Head of Policy & Campaigns, Timothy Douglas today (4 October) has given evidence before the Local Government, Housing and Planning Committee who are examining the New Deal for Tenants strategy, consultation evidence and the potential impact of the newly published legislation.
What does the legislation propose?
The legislation prevents routine rent increases until March 2023. Landlords can however apply to a rent officer in the area in which the property is located, in order to recover up to 50 per cent of the increase of any evidenced, prescribed property costs that the landlord has incurred during the relevant period.
Prescribed property costs are
- interest payable in respect of a mortgage or standard security relating to the let property
- a premium payable in respect of insurance (other than general building and contents insurance) relating to the let property
- service charges relating to the let property that are paid for by the landlord but the payment of which the tenant is responsible for
Where a landlord is not happy with the rent officer's order, they can appeal to the First Tier Tribunal. Rent increase notices issued before 6 September 2022 are enforceable as normal.
Moratorium on evictions
A moratorium on evictions will prevent the enforcement of eviction notices and will not prevent the serving of notices. Additionally, the First Tier Tribunal will continue to operate as normal.
There are however a number of exemptions on the grounds of anti-social and criminal behaviour, abandonment, repossession by lenders, substantial rent arrears and circumstances where a landlord needs to sell or live in the property.
Guidance states 'The Scottish Government recognises that there are a number of circumstances where enforcement of an eviction order should be able to proceed to protect communities and to strike an appropriate balance between protection of tenants and the rights of landlords. This includes where a tenant is to be evicted for antisocial and criminal behaviour due to the continued negative impact on the community delaying enforcement of an order would have; where a tenant is no longer living in the let property given the negative impact this would have on housing supply; circumstances where landlords themselves are in financial hardship and need to sell or live in the let property; and in cases where there are substantial rent arrears given the negative impact of accruing further significant debt on both the tenant and the landlord.'
Coronavirus (Recovery and Reform) (Scotland) Act 2022
The Coronavirus (Recovery and Reform) (Scotland) Act 2022 came into force on 1 October. Lettings agents managing properties in Scotland are required to issue Pre-Action Requirements under the new legislation.
Propertymark is in regular contact with the Housing Services and Rented Sector Reform Unit who are responsible. The Pre Action Protocol updates have not yet been released and are expected within the coming days.
