Landlords consider court action over Scottish rent freeze | Mortgage Strategy

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The Scottish Association of Landlords says it is considering legal action over the Scottish government’s move to freeze rents for private and social tenants amid the cost-of-living crisis.  

The Cost of Living (Protection of Tenants) bill is being debated in the Scottish Parliament today, after being first announced by first minister Nicola Sturgeon on 6 September.  

The bill sets the rate at which existing tenancies can be raised at “0%” and suspends evictions with “limited exceptions”.  

The measures are initially set to last until the end of next March, but the bill gives Scottish Ministers the power to extend the regulation.  

The paper says: “There is no limit to the number of times it can be extended but can only be extended for up to a year at a time.”  

Holyrood is expected to pass the measures as the ruling Scottish National Party and the Scottish Greens coalition have a working majority.    

The Scottish Association of Landlords told its members: “We are currently considering our next steps and what potential legal action could be taken to protect your interests.”  

Scottish Association of Landlords chief executive John Blackwood adds: “With this bill, the SNP and Greens have put political rhetoric ahead of measures that would achieve real results in solving Scotland’s housing crisis.”  

“They have neglected the housing sector in Scotland, leaving it to crumble. Those needing a home shout for help but no one answers. Big promises of improvements never materialise. All the while, costs rise unchecked.”  

“Contrast that with the overwhelming majority of landlords in Scotland whose businesses want to invest in more housing, engage closely with tenants, improve and upgrade properties and keep rent levels affordable, in the interests of both tenants and landlords.”  

He adds: “By approaching this problem in a political way rather than as a serious policy discussion, the SNP and Greens have already caused investment to halt, with fewer homes available and people struggling to find somewhere to live. That is irresponsible whichever way you look at it.”  

“We know the SNP and Greens will ram this Bill through but that will only result in poor law. We can already see it is full of holes and may well be open to legal challenge, particularly around protection of private property and ownership.”  

But Scottish tenants’ rights minister Patrick Harvie says: “The cost-of-living crisis is an emergency situation demanding an emergency response.  

“People who rent their homes are more likely to live in poverty or be on low incomes than homeowners. As such they are particularly exposed to rising prices, and it is imperative that we bring in support for them urgently.  

“We know that many landlords have been doing what they can to protect their tenants, but some tenants are being hit with large rent increases that are hard to justify.   

“This legislation aims to protect all tenants from substantial increases, balancing the protections that are urgently needed for tenants with safeguards for those landlords who may also be impacted by the cost crisis.”  

The bill says: “Any rent increase notice on or after 6 September 2022 has no effect, nor does a notice given at a time when the permitted rate was 0%.”  

But adds there are exceptions on rent rises and evictions “for landlords experiencing increased property costs, such as mortgage interest or service charges in relation to their leased property.”    

Landlords can also force evictions if tenants are found to be guilty of criminal or anti-social behaviour, or where the tenant has built up substantial rent arrears.   

Around 38% of households in the country rent, according to a consultation paper issued by the Scottish government in December.  


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