| Act of the Scottish Parliament | |
 | |
| Territorial extent |  Scotland |
|---|---|
Status: Current legislation | |
| Text of statute as originally enacted | |
The Cost of Living (Tenant Protection) (Scotland) Act 2022 is an Act of the Scottish Parliament which came into force on 27 October 2022.
The Act freezes rents and establishes a moratorium on evictions for both the private rented and social sectors until at least 31 March 2023.
The provisions of the Act were considered by Scottish Ministers to be necessary or proportionate in connection with the cost of living. The Act restricts landlords from increasing the amount of rent they shall charge on residential tenancies, restricts evictions from residential tenancies, and allows Scottish Ministers to make regulations about matters a rent officer or a First-Tier Tribunal must consider in determining rent. The permitted rate of 0% rent increase from 6 September 2022 is defined within the meaning of section 24A(1) of the Housing (Scotland) Act 2001.
The main provisions of the Act were set to expire at the end of 31 March 2023, however, this date was amended to 30 September 2023. [1] This date of 30 September 2023 may be amended by Scottish Ministers. The permitted rate of 3% rent increase was set for the duration of 1 April 2023 to 30 September 2023. [1]
The United Kingdom cost of living crisis is an ongoing event starting in 2021, in which prices for essential goods and services in the United Kingdom began increasing faster than household incomes, resulting in a fall in real incomes. The UK cost of living is currently the most affected of advanced economies.
Private rents across all tenants in Scotland have risen significantly in recent months, with reports indicating that annual rents have increased by 15.1% in Edinburgh, 13.0% in Glasgow and 4.4% in Aberdeen. [2] Announcing the legislation, First Minister of Scotland Nicola Sturgeon described pressures on household budgets as a humanitarian emergency. [3]
The stated purpose of the Act is to respond to the situation caused by the impact of the cost crisis on those living in the rented sector in Scotland by introducing a rent freeze and a moratorium on evictions, along with increased damages for unlawful evictions. [2] The stated intended effect is to protect tenants by stabilising their housing costs, to reduce impacts on the health and wellbeing of tenants caused by being evicted and/or made homeless by giving them more time to find accommodation, and to seek to avoid tenants being evicted from the rented sector by a landlord wanting to raise rents.
The Scottish Government holds that the emergency legislation is necessary in order to urgently respond to the specific circumstances of the current cost crisis to support those who rent their homes. [2] Households living in the rental sectors have less ability than owner occupiers to respond to the cost crisis because their housing costs, relative to their incomes, tend to be higher.
The legislation has a reporting requirement in order to demonstrate regularly the need for provisions to continue based on evidence at the relevant time.
The Scottish Government expressed that significant increases are expected in fuel poverty rates, particularly in the private and social rented sectors, with around half of households in these sectors being in fuel poverty despite the Energy Price Guarantee and despite such forms of mitigation as grants and support payments. [2]
Living Rent, the tenants' union in Scotland, expressed that it is inappropriate for tenants to be sheltering landlords from the cost of living crisis and that the Act provides some relief, while also noting that rents prior to the freeze were already unaffordable, thus necessitating maintaining the Act in force until the Scottish Government enacts rent controls which return rents to affordable levels. [4]
The chief executive of the Scottish Association of Landlords John Blackwood suggested that the Act may reduce the supply of housing currently available. [4]
The London Renters Union has called for similar changes to be enacted in England. [5] Reports indicate that rent increases of up to 50% have been observed in London. [5]
A landlord is the owner of a house, apartment, condominium, land, or real estate which is rented or leased to an individual or business, who is called a tenant. When a juristic person is in this position, the term landlord is used. Other terms include lessor and owner. The term landlady may be used for the female owners. The manager of a pub in the United Kingdom, strictly speaking a licensed victualler, is referred to as the landlord/landlady. In political economy it refers to the owner of natural resources alone from which an economic rent is the income received.
Eviction is the removal of a tenant from rental property by the landlord. In some jurisdictions it may also involve the removal of persons from premises that were foreclosed by a mortgagee.
Housing Benefit is a means-tested social security benefit in the United Kingdom that is intended to help meet housing costs for rented accommodation. It is the second biggest item in the Department for Work and Pensions' budget after the state pension, totalling £23.8 billion in 2013–14.
Rent control in Ontario refers to a system of rent regulation in Ontario, Canada which limits the amount by which the rent paid by tenants for rental accommodation can increase. It applies to any unit that was first occupied for residential purposes before November 15, 2018.
A house in multiple occupation (HMO), or a house of multiple occupancy, is a British English term which refers to residential properties where ‘common areas’ exist and are shared by more than one household.
Landlord harassment is the willing creation, by a landlord or their agents, of conditions that are uncomfortable for one or more tenants in order to induce willing abandonment of a rental contract. This is illegal in many jurisdictions, either under general harassment laws or specific protections, as well as under the terms of rental contracts or tenancy agreements.
An assured tenancy is a legal category of residential tenancy to an individual in English land law. Statute affords a tenant under an assured tenancy a degree of security of tenure. A tenant under an assured tenancy may not be evicted without a reasonable ground in the Housing Act 1988 and, where periodic changes in rent are potentially subject to a challenge before a rent assessment committee.
Rent regulation in New York is a means of limiting the amount of rent charged on dwellings. Rent control and rent stabilization are two programs used in parts of New York state. In addition to controlling rent, the system also prescribes rights and obligations for tenants and landlords.
The Landlord and Tenant Act 1985 is a UK Act of Parliament on English land law. It sets bare minimum standards in tenants' rights against their landlords.
The Ellis Act is a 1985 California state law that allows landlords to evict residential tenants to "go out of the rental business" in spite of desires by local governments to compel them to continue providing rental housing.
The history of rent control in England and Wales is a part of English land law concerning the development of rent regulation in England and Wales. Controlling the prices that landlords could make their tenants pay formed the main element of rent regulation, and was in place from 1915 until its abolition by the Housing Act 1988.
In England and Wales, a section 21 notice, also known as a section 21 notice of possession or a section 21 eviction, is the notice which a landlord must give to their tenant to begin the process to take possession of a property let on an assured shorthold tenancy without providing a reason for wishing to take possession. The expiry of a section 21 notice does not bring a tenancy to its end. The tenancy would only be ended by a landlord obtaining an order for possession from a court, and then having that order executed by a County Court bailiff or High Court enforcement officer. Such an order for possession may not be made to take effect earlier than six months from the beginning of the first tenancy unless the tenancy is a demoted assured shorthold tenancy. If the court is satisfied that a landlord is entitled to possession, it must make an order for possession, for a date no later than 14 days after the making of the order unless exceptional hardship would be caused to the tenant in which case possession may be postponed to a date no later than six weeks after the making of the order. The court has no power to grant any adjournment or stay of execution from enforcement unless the tenant has a disability discrimination, public law or human rights defence, or the case is pending an appeal.
Rent control in Scotland is based upon the statutory codes relating to private sector residential tenancies. Although not strictly within the private sector, tenancies granted by housing associations, etc., are dealt with as far as is appropriate in this context. Controlling prices, along with security of tenure and oversight by an independent regulator or the courts, is a part of rent regulation.
The Tenancy Deposit Schemes (Scotland) Regulations 2011 came into force on 7 March 2011. Every landlord or letting agent that receives a deposit in Scotland must register with their local authority and join a tenancy deposit scheme.
Rent regulation is a system of laws, administered by a court or a public authority, which aims to ensure the affordability of housing and tenancies on the rental market for dwellings. Generally, a system of rent regulation involves:
The Costa–Hawkins Rental Housing Act ("Costa–Hawkins") is a California state law, enacted in 1995, which places limits on municipal rent control ordinances. Costa–Hawkins preempts the field in two major ways. First, it prohibits cities from establishing rent control over certain kinds of residential units, e.g., single-family dwellings and condominiums, and newly constructed apartment units; these are deemed exempt. Second, it prohibits "vacancy control", also called "strict" rent control. The legislation was sponsored by Democratic Senator Jim Costa and Republican Assemblymember Phil Hawkins.
The Housing (Scotland) Act 2014 is an Act of the Scottish Parliament which received royal assent on 1 August 2014.
Eviction in the United States refers to the pattern of tenant removal by landlords in the United States. In an eviction process, landlords forcibly remove tenants from their place of residence and reclaim the property. Landlords may decide to evict tenants who have failed to pay rent, violated lease terms, or possess an expired lease. Landlords may also choose not to renew a tenant's lease, however, this does not constitute an eviction. In the United States, eviction procedures, landlord rights, and tenant protections vary by state and locality. Historically, the United States has seen changes in domestic eviction rates during periods of major socio-political and economic turmoil—including the Great Depression, the 2008 Recession, and the Covid-19 pandemic. High eviction rates are driven by affordable housing shortages and rising housing costs. Across the United States, low-income and disadvantaged neighborhoods have disproportionately higher eviction rates. Certain demographics—including low income renters, Black and Hispanic renters, women, and people with children—are also at a greater risk of eviction. Additionally, eviction filings remain on renters' public records. This can make it more difficult for renters to access future housing, since most landlords will not rent to a tenant with a history of eviction. Eviction and housing instability are also linked to many negative health and life outcomes, including homelessness, poverty, and poor mental and physical health.
Cancel rent is a slogan and tenant rights movement in the United States, which advocates for the cancellation of rental payments and suspension of mortgage payments during the coronavirus pandemic. Activists and organizations have also presented other demands, which include the cancellation of housing-related expenses, cancellation of late fees for housing payments, the establishment of a landlord hardship fund, an increase in emergency housing, and an eviction moratorium. The movement was triggered by the economic impact of the pandemic, in which mass business closures and employee layoffs resulted in financial insecurity for many Americans. Tenants faced a range of issues, including the inability to pay rent, harassment or intimidation from landlords, and potential eviction. This situation put tenants at risk of damaged credit ratings, food insecurity, and homelessness. Consequently, activists, tenants rights organizations, and some politicians have called for the cancellation of rent.
The Protecting Tenants and Strengthening Community Housing Act, 2020 is a law in the province of Ontario that brought a number of changes to regulations surrounding rented housing in the province.