A new Housing Bill was already planned by the end of this parliamentary year to introduce the New Deal for Tenants and other aspects of Housing to 2040.
The Scottish Government has stated that the timing of this Bill will need to be carefully considered in light of the cost of living crisis and in order to identify effective means to secure affordable rents for the longer term.
Propertymark is engaging with Patrick Harvie, Minister for Tenants' Rights and his team in the Scottish Government to outline the unintended consequences this is likely to have on the shrinking PRS and the impact on agents and landlords.
Programme for Government 2022-2023
The Scottish Government has set out the actions they will take in the coming year with their priority to protect households, businesses and public services from the worst impact of the cost of living crisis.
The programme includes a new tenants' rights campaign with a ‘one-stop-shop' website to provide people with information on the range of benefits and support available to help them through the current cost of living crisis.
Eligibility for the Tenant Grant Fund will also be widened to support those struggling with costs and an additional £14.9 million to begin mitigating against the benefit cap and changes to the Local Housing Allowance rates.
Other measures include:
- £294.4 million for family payments, including Bridging Payments, Best Start Grants, Best Start Foods and the Scottish Child Payment
- £64 million of investment to extend free school meals during term time
- £300 million for concessionary travel
- £437 million to reduce household bills through Council Tax Reduction and Water Charge Reduction
- Uprating eight social security payments delivered by Social Security Scotland by 6 per cent
- £214 Child Winter Heating Assistance which supports families of severely disabled children and young people with their energy costs
- Providing £68.1 million this year to mitigate the UK Government "bedroom tax", and an additional £14.9 million to begin mitigating against the damaging impact of other UK Government welfare cuts including the benefit cap and changes to the Local Housing Allowance rates
- Investing £161 million across Warmer Homes Scotland, Area Based Schemes, and Home Energy Scotland, cutting energy bills and climate emissions
- Use Emergency Budget Review to provide local authorities with additional Discretionary Housing Payment funding to mitigate the UK Government benefit cap as fully as possible within devolved powers, and give local authorities more flexibility to take account of energy bills in their prioritisation of households for Discretionary Housing Payments
For small businesses promised, measures include:
- Protection from energy price rises for SMEs
- A VAT reduction on business energy bills
- An expansion of shortage occupation lists to enable improvements in filling vacancies from overseas
- Support in handling business debt including the extension of the Coronavirus Business Interruption Loan Scheme and other loans
It is not only tenants who are exposed to the effect of the cost-of-living pressures and as a key housing provider, private landlords will be asking what help they can expect to manage any additional costs they may have to bear as a result of today’s announcement.
Furthermore, it’s unfair to suggest letting agents and their landlords will be routinely increasing rents at a time when many tenants are facing a further strain on their finances. All parties will need to continue to work together.
We know the Scottish Government is committed to a system of rent controls and is already considering a ban on winter evictions. What’s most alarming is that this feels like déjà vu with the potential for these new temporary protections to become permanent as has been the case with others introduced during the pandemic.
