Scots eviction and rent-rise ‘ban’ legislation will just cost landlords more money – claim

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Property solicitor David Smith has cast doubt on the effectiveness of Scotland’s Cost of Living (Tenant Protection) Bill, which he believes could end up forcing landlords to bear more of the debt burden and direct them towards quitting the sector.

The Bill creates third-generation rent control, meaning that rents are controlled – but float freely – within tenancies, explains legal firm JMW’s Smith, who adds that this does not really reduce overall rent increases in the long term as they will eventually rise to the market level.

“It motivates tenants not to leave properties, even where they might be better served by moving because while in tenancy their rent is restricted, by moving they will have to pay the (often higher) market level,” he says.

“That means that there is less property churn and lower availability for those coming into the market looking for properties. Given that Scotland is already suffering from a shortage of available rented property it seems likely that this Bill will make that problem worse rather than better.”

Longer notice period

The Bill also prevents anyone from being evicted by prohibiting a decree of removing (the Scots’ version of a warrant of possession) which actually gives a tenant six months’ notice of the making of the decree.

There are exemptions for criminal and anti-social behaviour, substantial arrears and landlords needing property back to sell due to financial hardship or to occupy themselves.

“However, it is worth noting that the Bill also amends previous legislation such that substantial rent arrears means that the tenant is in six months of arrears, which is rather higher than now,” adds Smith. “The clear direction of travel is to force landlords to bear more of the debt burden and to give them options to leave the sector if they want out.”

Read more about the new Scots legislation.

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