Rent freeze will be legal and strikes right balance, says Harvie

Both the Scottish Government’s law officers and Holyrood’s presiding officer had asserted its legislative competence, he told MSPs this morning.

He was speaking as landlord groups consider whether to fight the legislation, which could freeze rents and ban evictions for between six and 18 months. 

Scottish Land & Estates, which represents large rural housing providers, today said it had asked its legal advisers for a view on the legality of the plan.

Mr Harvie said the Cost of Living (Tenant Protection) (Scotland) Bill struck “the right balance” between protecting tenants and ensuring landlords can still offer properties for rent.

Giving evidence to Holyrood’s local government committee, the Tenants’ Rights Minister also addressed concerns that the Bill would reduce the supply of rented housing.

The Bill is intended to protect tenants during the cost of living crisis this winter and covers the private and social rented sector, as well as student accommodation.

Mr Harvie said the Bill had three main aims: stabilising costs by freezing rent until at least March 31, introducing a moratorium on evictions, and reducing unlawful evictions.

Under the legislation, rent increases will be frozen at 0 per cent until March 31 next year, backdated to September 6.

However ministers will also have the power to extend this for two further six-month periods if necessary, subject to parliamentary approval.

Mr Harvie said: “The legislation we’re proposing will help keep people in their homes and help stabilise their housing costs during this extraordinary costs crisis. We believe the package of measures strikes the right balance between this aim and ensuring landlords can continue to offer properties for rent and manage tenancies sustainably.”

The minister said he did not believe the Bill would lead to many tenants refusing to pay rent.

He said: “The majority of landlords will obey the law and not try to get around it, the majority of tenants will also meet their responsibilities.”

He acknowledged the Scottish Government had not done much of its intended work to collect data about the private rented sector, adding: “We will continue to monitor and report on the operation of the emergency legislation.

“I think we’re conscious that some of the data that’s being collected in real time is only going to come in as we’re having to make decisions.”

Tory MSP Miles Briggs asked Mr Harvie if the Bill was compliant with the ECHR, which says people are “entitled to the peaceful enjoyment of [their] possessions”. 

Mr Harvie said he was satisfied the Bill was “compliant and within devolved competence”.

Mr Briggs said there was international evidence rent caps led to “quite severe” unintended consequences, including fewer properties being let out and a rise in homelessness.

Mr Harvie said: “There are other European countries with a higher level of regulation, and indeed long-standing systems of rent controls, which have an even bigger private rented sector than Scotland.

“So this can be done properly, this can be done responsibly, to make sure that we raise standards, ensure that there’s protection for tenants and tenants’ rights at the same time as making sure that our housing systems have adequate supply and good quality.”

Earlier, the committee heard from expert witnesses in the housing sector.

John Blackwood, chief executive of the Scottish Association of Landlords, said the Bill was “not proportionate”, and some landlords were already seeing increased mortgage costs.

He said: “Landlords are affected as well as tenants in the cost-of-living crisis.”

He said the Bill appeared to be “watered down” since the First Minister first announced the plan on September 6, but some landlords remained “spooked” by the changes.

He said: “Lots of landlords still don’t know what it means to them. Rents can still go up and evictions can still take place. Over the last month landlords have been running to the hills, saying rather than put my property up for rent I’m going to sell.”

Timothy Douglas, head of policy at Propertymark, said the fundamental problem was a lack of supply in the housing market, which could be made worse by a rent freeze.

“We think this will reduce supply which will increase rents further,” he said.

But Caroline Crawley, of the tenants’ union Living Rent, urged MSPs to back the Bill.

She said rents were “increasing at insane rates”, with figures in the Glasgow area going up by 30% in the last decade and 42% in the Lothian region.

“It’s just truly unaffordable for people who are working, never mind people who are on benefits.”

She also said the loophole in the Bill allowing rent increases as people move between tenancies should be closed.

Aaron Hill, of the Scottish Federation of Housing Associations, said extending the freeze beyond March 31 would be an ineffective method of tackling the cost-of-living crisis.

Such an extension would cost housing associations £50 million in the first year, rising to £200 million over four years, he said.

“What that adds up to is fewer homes being built, fewer homes being retrofitted to zero-carbon standards and less service provision in terms of tenants and support than can be offered to them.”

Social rents in Scotland are around half of private rents and are among the lowest in the UK, he added.

If MSPs vote in favour of treating the Bill as emergency legislation – which is highly likely given the agreement between the SNP and the Scottish Greens in Parliament – an expedited process will see the first stage take place on Tuesday, the second on Wednesday and a final vote on Thursday.

Away from parliament, Stephen Young of Scottish Land & Estates said: “We will scrutinise the bill closely but the reality of the situation is that the SNP-Green coalition will be able to vote it through, come what may – and the negative consequences may be felt for years to come.

“Even if it is passed in parliament, we will be asking our legal advisors to look at it and provide their view on whether it is compliant with other legislation. 

“The Scottish Government has already said this is a complex issue and ramming it through parliament in three days is likely to create more problems than it solves.”