The emergency Cost of Living (Tenant Protection) (Scotland) Bill has now been passed by the Scottish Parliament and gives ministers temporary powers to cap rents for private and social tenants and provides a moratorium on evictions. The powers are in place until at least the end of March 2023. However, these measures could be extended to 30 September 2023 and then again to 31 March 2024, after the measures have been reviewed to check that they're still "necessary and proportionate" in relation to the cost of living crisis.
** Update** the measures have now been officially extended until 31st March 2024.
Ever since the initial announcement was made by Nicola Sturgeon, landlords have understandably had lots of questions about how the measure will work in practice. The Scottish Association of Landlords along with the Council of Letting Agents have produced a handy guide to answer many of those questions:
1. Can I serve notice? Yes you can, as normal.
2. If the tenant doesn’t move out during the notice period can I apply to the tribunal for an eviction order? Yes you can, as normal.
3. Can the tribunal still grant an eviction order? Yes they can. All evictions are subject to a reasonableness test but evictions are only refused on the grounds of reasonableness in about 2% of cases.
4. Can I enforce an eviction order? Only in some cases. During the period the eviction ban is in force sheriff officers are not allowed to evict tenants from their home unless the eviction has been granted in tribunal proceedings where:
• - notice was served on the tenant prior to 6 September 2022 and tribunal proceedings commence before the Act comes into force (the Act is expect to come into force towards the end of October); or
• - the eviction was granted on an exempt ground. For details of exempt grounds see our factsheet here.
In cases where the ban does apply, the eviction order is still valid and can be enforced when the ban is lifted or six months after the order is granted, whichever is sooner.
Despite the high profile freeze on rent increases announced by the First Minister on 6 September, there are some circumstances in which rent increases are still permitted. These are as follows:
1. Landlords are permitted to raise the rent between tenancies – it is only mid-tenancy increases which are affected by the rent increase restrictions.
2. Rent increase notices issued for any tenancy type prior to 6 September 2022 are permitted to come into force at the end of the notice period.
3. For assured and short assured tenancies which have rent increase clauses within the contract, rent increases are permitted to take place regardless of whether notice of the rent increase is issued before or after 6 September 2022.
4. Landlords can apply for an increase of up to 3% to cover increases in prescribed property costs.
Feel free to reach out to 1Let should you have an further questions. As always, we are here to help and support our clients.