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Private Sector Tenancy Update: Continuation of Rent Cap and Eviction Moratorium

Private Sector Tenancy Update: Continuation of Rent Cap and Eviction Moratorium

Scottish Ministers have published the draft regulations which will extend the eviction moratorium in both the social and private rented sector to 30 September 2023. 

The Regulations can be found here.

https://www.legislation.gov.uk/sdsi/2023/9780111056417

Landlords remain entitled to serve notice and raise eviction proceedings. The moratorium only delays the enforcement of eviction orders granted on particular grounds. There remains a number of grounds that are exempt from the moratorium. 

Rent Cap

Further, these draft Regulations extend the rent cap in the private rented sector.  From 1 April 2023 the cap will be increased to 3%. This means the permitted rate for any increase from 1 April 2023 will be no more than 3% of the existing rent. Landlords must wait until 1 April 2023 to serve a notice to increase the rent. Any notice served before this date will not be valid.  

Currently, Landlords experiencing increased property costs can apply to the rent officer to increase the rent by more than the permitted rate. This was subject to a cap of 3%.  The draft regulations propose to increase the increased costs cap to 6% from 1 April 2023. 

This means the cap will be set at 50% of the increase in certain prescribed costs subject to a cap of 6 % of existing rent.

Prescribed property costs are interest payable in respect of a mortgage or standard security, a premium payable in respect of insurance (other than general building and contents insurance), and service charges paid for by the landlord but for which the tenant is responsible for under the tenancy. Increases in these costs must have been incurred in the six months immediately before the application for increase is made.

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

Also check out:

What Does the Cost of Living (Tenant Protection) (Scotland) Act 2022 Mean for Landlords? 

Rent-freeze and Eviction Ban Legislation Recieves Royal Assent

Authors

Claire Mullen