A coalition of landlords and letting bodies has recently launched legal action against the Scottish government’s rent control and eviction ban legislation.
The Scottish Association of Landlords, Scottish Land and Estates, and Propertymark submitted a petition to the Court of Session in Edinburgh on 20th January seeking a judicial review of the proposals.
The court petition argues that the rent control and eviction ban is unlawful because it breaches the rights of property owners under the European Convention on Human Rights, which states “The enjoyment of the rights and freedoms set forth in the Convention shall be secured without discrimination on any ground such as…association with…property…” and which lawmakers are still required to comply with post-Brexit.
The three groups also believe the law to be disproportionate and unfair, with the decision by the Scottish government to retain rent control for the private rented sector and remove it for the social rented sector from 1st March exacerbating the situation.
The groups argued that by deciding to remove the rent control in the social sector, the Scottish government acknowledges the need for maintenance of these properties, but has not given the same consideration to landlords in the private sector.
John Blackwood, Chief Executive of the Scottish Association of Landlords, said: “So far, the result of the Scottish government’s eviction ban and rent freeze has been just as concerning as we predicted. Landlords selling up loss making property is further reducing housing supply, despite ever increasing demand. The result is the cost of finding a new home is actually increasing for renters."
“While the Scottish government sees fit to raise council and housing association tenants’ rents, so social landlords can do repairs and improvements, they fail to realise that private landlords are faced with similar financial pressures.”
In their legal petition, the groups also argued that the law does not make any distinction or provide relief based on different circumstances of landlords, between larger institutional companies that might be able to shoulder increased costs and individual landlords who cannot.
In its response to the legal action, the Scottish government said that it intends to allow private landlords to increase rents by up to 3%.
A Scottish government spokesperson said: “We recognise the role of the private rented sector in providing homes for let and acknowledge that some costs have been rising for landlords as well as tenants. The emergency legislation passed by parliament requires us to keep measures under regular review."
“So, subject to the approval of parliament, we intend to allow landlords in the private sector to increase rents by up to 3%, or alternatively to apply to Rent Service Scotland for an increase of up to 6% to help cover defined cost increases associated with their let property."
“We are not aware of a legal action being served on the Scottish ministers challenging the Cost of Living (Tenant Protection) (Scotland) Act 2022.”
Social landlords consult on rent increases and are overseen by the Scottish Housing Regulator, which takes action if rents rise unreasonably.
Social landlords, which are almost exclusively not-for-profit and invest rent increases in maintenance and new supply, struck an agreement with the government on rent rises and would not impose unrestrained increases in the same fashion as private landlords.
**Scottish Association of Landlords (SAL) - Latest campaign update 25th January 2023**
The latest update on the legal campaign by the Scottish Association of Landlords, as stated on their website, is that a follow-up meeting was held on 25th January between Scottish Government officials and SAL to continue dialogue and receive an update on future legislation planned this year. Scottish Government officials agreed to continue having regular meetings with the coalition partners.
For the latest updates on the legal action being taken by SAL, Scottish Land and Estate and Propertymark, you can visit the SAL website: www.scottishlandlords.com
By becoming a member of SAL, you can help support their campaign and gain access to a number of exclusive benefits, such as a members resource area; Scottish letting advice helpline; member deals on goods and services; subscription to the Landlord Focus magazine and regular email updates - plus many more. To join, visit the SAL website or call 0131 564 0100.
Sources:
https://propertyindustryeye.com/scottish-government-prepares-for-legal-action-as-landlords-seek-judicial-review/
https://scottishlandlords.com/news-and-campaigns/news/cost-of-living-act-campaign-update1/
