PLANS to limit rent increases and protect tenants from unfair eviction are the “biggest move forward” for the private rental sector in 25 years, campaigners claim.
Shelter Scotland spoke out yesterday as the Scottish Government published its Private Housing (Tenancies) (Scotland) Bill, which will allow local authorities to re-introduce rent controls in areas with “excessive” charges.
Reacting to the legislation, Shelter Scotland director Graeme Brown said: “This Bill represents the biggest move forward in private tenancy law in the last quarter of a century and we welcome many of the progressive changes it contains.
“The private rented sector in Scotland has doubled over the last ten years and is now home to more than 330,000 households – 85,000 with children.
“This growth and change in types of people living in the sector means the tenancy regime needs a major overhaul.”
The 2014 Scottish Household Survey shows the proportion of people in privately rented housing has grown from five per cent in 1999 to 14 per cent today. Meanwhile, the level of social rented housing fell from 32 to per cent to 24 per cent in the period.
According to property website Zoopla, renting a home in Glasgow, where average monthly costs are £596, is 33 per cent more expensive than buying a property.
The differential was the highest in the UK, while in Dundee, which has an average rent of £522 per month, renting was 27 per cent dearer and in Edinburgh, where rents can reach £852, buyers could save eight per cent.
Unveiling the Bill yesterday, Housing Minister Margaret Burgess said: “The Scottish Government is committed to ensuring every person in Scotland has a safe and warm place to stay, and that there is a sustainable, long-term solution to addressing housing affordability.
“The private rented sector is changing. It is now home to a growing number of people in Scotland, and we recognise there are some areas where rents are increasing significantly.
“The range of measures brought forward under this Bill will ensure the private rented sector is better managed, simplified and successful, and creates a system that works for everyone.”
Proposals include streamlining the system to end “confusing pre-tenancy notices” and making tenancy agreements easier to understand.
UNDER the plans, tenants can no longer be automatically asked to leave their home when their rental period ends and landlords who want to repossess their properties will be allowed to do so if they intend to sell up or move in themselves.
They will also be allowed to take their keys back in cases where a tenant has abandoned a property, fallen into arrears or carried out anti-social or criminal behaviour. Only one rent increase per year will be allowed, with tenants given a three-month notice period to allow them to budget.
Those who wish to challenge an increase will be able to refer their case for adjudication and councils will be allowed to impose rent controls for up to five years in high-pressure areas.
Such limitations were abolished under Margaret Thatcher and groups including the Living Rent Campaign have been pressing Holyrood to bring them back.
Jon Sparkes, of the Crisis charity, said: “Today’s announcements on tenancy reform are a major step forwards, with Scotland once again taking the lead in protecting people from the devastation of homelessness.”
Umbrella group PRS 4 Scotland, which includes letting agents and landlords, said the changes would “hammer” students, deter investment in the sector and cause further housing pressures.
However, part of the plan includes the consideration of the development of a financial guarantee mechanism to stimulate private rental sector expansion. Scotland’s chief planner has also written to local authorities emphasising the need to boost the supply of housing.
Dr John Boyle, spokesman for PRS 4 Scotland, said the Bill set off “alarm signals”, adding: “The popular cry for rent controls has clouded the truth about the rental market.
“Rents are not universally going up; in former hot-spots, such as Aberdeen, they are now decreasing. Where rents are rising, such as in Edinburgh, supply is tight and demand exceptionally high.”
He added: “Debate has been hampered by the lack of definitive data on Scotland’s PRS and this needs to be corrected before the Bill progresses.”
Gordon Maloney: Bill will permanently alter renting – but way forward is to link controls to quality
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