Glasgow: 0141 221 5562 Edinburgh: 0131 220 7660

Continuation of Rent Cap and Eviction Moratorium for PRS

Continuation of Rent Cap and Eviction Moratorium for PRS

The Cost of Living (Tenant Protection) (Scotland) Act 2022

The Cost of Living (Tenant Protection) (Scotland) Act 2022 introduced an eviction moratorium (applicable to the majority of eviction grounds) in addition to a rent freeze, with increases capped at 0%. These emergency provisions applied across both the social and private sector and were to be in place until at least 31st March 2023.

Routine reporting  is a requirement of the Act to ensure Scottish Ministers consider whether the provisions remain necessary and proportionate in connection with the cost of living crisis. 

On 12th January 2023, Scottish Ministers published their first report to the Scottish Parliament on the 2022 Act covering the period 28 October 2022 to 31 December 2022. 

Report recommendations

Eviction Moratorium

The report recommends that the eviction moratorium remains in place in relation to both the social and private rented sector.

The Rent Cap

The report proposes to expire the rent cap for the social rented sector from 1st March 2023 which will enable social landlord to increase rents in accordance with their routine annual increases from 1st April 2023.

In terms of private sector tenancies,  the report proposes the rent cap should remain at 0%.  The view of the Scottish Ministers is that the rent cap remains necessary to ensure private rented sector tenants are protected against wider economic conditions and is in the public interest.

What does this mean for Private Landlords? 

The provisions were initially set to expire on 31 March 2023. The outcome of this report suggest the provisions will now remain in force beyond that date. It is likely we will require to await  the outcome of the next report due in early April 2023 to ascertain what is next for rents in the private rented sector. However, private landlords, particularly those with private residential tenancies where the rent increase notice period is 3 months, are likely to require to wait at least another 6 months before any rent increase can take effect if at all. 

The continuation of the rent cap will undoubtedly be disappointing to those in the private sector.

 

If you require specific advice on the impact of the Cost of Living (Tenant Protection) (Scotland) Act contact please contact our PRS team.

Authors

Claire Mullen