The Scottish government is today going to vote on whether to introduce mandatory three-year tenancies and rent controls, in a move that will trouble agents south of the border.
Late amendments were made to the Scottish Housing Bill after Ed Miliband announced earlier this month that if Labour wins next year’s general election, it will introduce a package of ‘reforms’ to the private rented sector, including rent controls and three-year tenancies.
Miliband also announced that Labour would introduce a ban on fees charged by letting agents – a move defeated last night, but a policy which seems certain to form part of Labour’s 2015 manifesto. However, such a ban already exists in Scotland.
Today’s Scottish vote on two such key issues as rent caps and mandatory longer tenancies, with sweeping changes to landlords’ rights of eviction, will be seen as an important potential precedent for south of the border.
Both amendments have been tabled by Labour MSP (Member of the Scottish Parliament) James Kelly and could come into force within months – by January 1, 2015.
Private (but not social) landlords would be prohibited from rent reviews unless more than a year had elapsed since the previous one, and the amount by which rent could be raised would be capped.
On security of tenure, a private tenancy would have an initial six-month term. If this was satisfactorily completed, the period of the tenancy would be ‘at least three years’. Tenants could give the landlord one month’s notice at any time, but landlords would have to give two months’ notice, and give one of six specified grounds:
* arrears;
* anti-social behaviour by the tenant;
* other breaches of the tenancy agreement;
* if the landlord wished to sell the property;
* if the landlord wanted the property as a home for themselves or a family member;
* if the landlord wanted to refurbish or change the use of the property.
The Scottish government is currently led by the SNP, followed by Scottish Labour, with other parties trailing.
The proposed amendments appear to have caught the industry in Scotland on the back foot, with very few comments – even by yesterday evening – from the professional bodies.
Malcolm Warrack of Letscotland said: “We believe that these amendments are well meaning but would have significant and damaging intended consequences.”
The Scottish Property Federation said rent controls would damage consumer confidence, and the Council of Letting Agents and Scottish Association of Landlords warned of a reduction in supply.
Comments (2)
amendment to the above – I was commenting that I think 5 yearly electrical inspections are a good thing if the measure is passed by MSPs and surprised that it had gone unreported!
Good work on identifying that Scottish Labour Party were inserting late amendment into Scottish Housing Bill –
Not so good in making it seem so immediate and a bit more journalistic research could have been used. Yesterday the amendments were before the Infrastructure and Capital Investment Committee. From the Holyrood website: The debate on the Committee's Stage 1 Report on the Housing (Scotland) Bill is planned for the afternoon of Thursday 24 April 2014.
See the hyperlink for a fully informed view
http://www.scottish.parliament.uk/parliamentarybusiness/CurrentCommittees/71002.aspx
It is probably also worth noting that the same amendment phase also includes there insertion of mandatory electrical checks on a quinquennial (5 yearly) basis which appears to have gone unreported – which is probably a good thing.
If approved it looks likely that these measures will be implemented on 1 Jan 2015. Like the Poll Tax it appears that Scotland could be the unfortunate testbed for a policy that could devastate housing and property investment in the country. These small amendments buried in otherwise fairly dull looking amendments to a bill could have such far reaching impact on a whole swathe of a society and the people it is intending to help will be the ones that suffer.