Rent freeze and eviction ban update – the Scottish Government has published its ‘Cost of Living (Tenant Protection) (Scotland) Bill’ which is likely to become law in the coming days. What’s included in the legislation? The legislation will give Government Ministers the temporary power to freeze most rents from 6 September until at least 31 […]
The legislation will give Government Ministers the temporary power to freeze most rents from 6 September until at least 31 March 2023. The law will also introduce a moratorium on most evictions for six months. Ministers will also have the power to extend the freeze and the ban for two further periods of six months, if they chose to do so and the Scottish Parliament agrees to it.
Evictions
Most evictions will not be allowed. Cases involving criminal or anti-social behaviour, abandonment of the property or substantial rent arrears by tenants are permissible. Also allowed will be cases where landlords have to sell or move back into a property due to financial hardship. Standard eviction proceedings can be started, but will not be enforceable until the end of the restrictions. The penalties surrounding unlawful evictions have also changed.
Rent Freeze
Any rent increases issued since 6th September will be cancelled. The freeze will apply to all private tenancies, social tenancies, and student halls. If landlords face some specific extra costs such as mortgage interest payments, they may be able to raise the rent by a maximum of 3%, but will have to seek permission from Rent Service Scotland.
Rent Adjudication
Where a tenant applies for a rent adjudication, the adjudication is based on open market values. The bill considers that once the cap is lifted, a large number of rent increases may occur at the same time, which would impact on the rent adjudication process. A process for making quick changes to the adjudication process is included in the legislation, but what that would look like would be determined at the time the change was required.
Next Steps
The Scottish Parliament is scrutinising the bill this week, with an expectation that it will be law this month. Until the law is passed, all of the provisions outlined in this article can be changed / removed / strengthened, etc. Given the speed this is moving, it is important that you seek professional advice before making any decisions on your own circumstances.
