Housing Bill: Recommended Consultation Response
You can use this template for your response to the Scottish Government's Housing Bill consultation. However, personalise your responses if possible to ensure maximum impact. You can email your response to rentcontrolconsultation@gov.scot or you can complete the consultation online.
Exemptions - properties let below market rent - mid-market rent properties
1. Should MMR properties be exempted from the application of rent controls under the Bill?
No. Rent Controls should apply equally.
Rents across all types of private-rented tenancies have soared, leaving many people in crisis. Exempting any type of property would deprive tenants of the right to live in a home that doesn’t trap them in poverty. Many tenants may not know whether or not their property is a Mid-Market Rent, making a basically fairly simple system excessively complicated.
2. We have set out some possible criteria which could be incorporated into a definition of MMR for the purpose of a possible exemption. Do you agree with these criteria?
No. I oppose any and all exemptions, but if a MMR exemption is included, it should offer the exemption only to MMRs not charging more than Local Housing Allowance.
Exemptions - purpose-built rental housing - build to rent
6. Should build to rent properties be exempted from the application of rent controls under the Bill?
No. Rent Controls should apply equally. Rents across all types of private-rented tenancies have soared, leaving many people in crisis. Exempting any type of property would deprive tenants of the right to live in a home that doesn’t trap them in poverty. Many tenants may not know whether or not their property is a Build-to-Rent property, making a basically fairly simple system excessively complicated.
Other circumstances where exemptions would be appropriate
7. Do you agree with the criteria we have set out which could be incorporated into a definition of build to rent for the purpose of a possible exemption?
No. I oppose any and all exemptions.
But if a BtR exemption is included, “Build-to-Rent” must be classed the same as other rented housing after 2 years and quality improvements must be linked to a point based system that evaluates a property's quality.
Other circumstances where exemptions would be appropriate
11. Excluding mid-market rent and build to rent/purpose built private rented accommodation, are there other categories of housing provision that should be exempted from rent controls?
No.
Modified rent control area restrictions - landlords who charge rent significantly below advertised rate
16. Should landlords be able to increase their rent by more than the level of the rent cap at the beginning of a new tenancy, where the previous tenancy was let significantly below market rates?
No. This would create an incentive to evict tenants and would again make the system too complicated for tenants and landlords to understand easily.
Modified rent control area restrictions - landlords who make improvements to their property
18. Should landlords be able to increase rents by more than the level of the rent cap to recover costs, where they have undertaken certain improvements which may enhance the rental value or bring additional benefit to the tenant?
No. This would likely be subject to gaming, whereby landlords may make minor changes to justify increases in rent.
Again, it would also take away from the simplicity of the current proposed system, which is one of its major advantages.
It is difficult to see how such a system would work in practice. Unless there is a flat-rate system, which would lead to the perverse incentives outlined above, there would need to be an excessively complicated system of classing different types of improvement and then linking them to different rent caps. There would then need to be inspections done to check the improvements have been made, which would be a major burden on the Local Authority. Such a system is unlikely to be practicable.
20. Are there any other types of improvements that should potentially qualify for this kind of increase above the level of the cap?
No
Modified rent control area restrictions - other costs a landlord may face
24. Are there any other cost increases for rental properties that would justify raising the rent above the level of the rent cap?
No.