Legal update - The Housing (Scotland) Bill passes stage 1

In April this year I issued a blog discussing the introduction by the Scottish Parliament of the Housing (Scotland) Bill (the “Bill”). The proposed Bill is aimed at bringing about long-term rent controls and tenant protections to the Scottish Private rented sector ultimately strengthening the rights of tenants and preventing homelessness.

On 28 November, 83 MSPs voted for the Bill and 31 voted against it (with 4 abstentions). The Bill will now advance onto Stage 2 of Parliament’s law making process which will be the committee stage.

With particular reference to landlord/tenant matters, the main highlights of the Bill are:

• Local authorities will be required to assess rent conditions in their area at least once every five years.
• Scottish Ministers will be able to set “Rent Control Areas” where increasing rent would be restricted for existing and new tenancies (with exclusions made for properties new to market).
• Proposed limits on the frequency of rent increases at the start of and during a tenancy.
• Powers allowing local authorities to gather information on properties listed on the private landlord register.
• Obligations on the First-tier Tribunal/courts to consider fixing a delay to evictions being carried out.
• Framework on how the First-tier Tribunal assess damages for unlawful eviction claims.
• Rights for private/social tenants to keep a pet (upon request).
• Giving private residential tenants greater autonomy in which to personalise their home.
• Unclaimed tenancy deposits left after five years can be repaid to the Scottish Ministers or to support private tenants across Scotland.
• Joint private residential tenancy agreements can be ended by a single joint tenant.
• Scottish Ministers can make regulations providing a date on which assured tenancies end and become Private Residential Tenancies.

Providing comment on the Bill passing its first stage of scrutiny, Housing Minister Paul McLennan said:

“The Housing (Scotland) Bill will play an important role in helping to tackle poverty by keeping rents affordable and ensuring people can stay in their homes.

“Ensuring everyone has the right to a safe and stable home is essential to the Scottish Government’s priority of ending child poverty and the Bill will play a role in reaching that goal.

“Scotland has led the way in protecting tenants and providing rights for homeless people. The Housing (Scotland) Bill aims to create a rental system that improves the rights of tenants while maintaining investment and provides greater support for people threatened with homelessness.

“I am pleased Parliament has supported the general principles of the legislation, especially on our proposals for a system of rent controls that keep costs lower for tenants.”

Two further stages of parliamentary examination of the Bill will be required before the Bill becomes law. Any of the above highlights may well be amended or removed during his time. The new measures are not likely to come into force any earlier than 2026.

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