A new temporary adjudication process for rent rises has been approved by MSPs to replace the emergency cap and eviction ban put in place by the Scottish Government.
Members of the Local Government, Housing and Planning Committee voted on Tuesday to pass regulations bringing in the new process.
Under the regulations, which will be in force for 12 months, tenants will be able to refer a rent increase to Rent Services Scotland for a ruling on whether it is fair or not.
If the gap between the current rent and the value of similar properties on the open market is less than 6%, the proposal will be approved.
This week we'll hear from @patrickharvie on regulations which will, following the end of the rent cap, introduce a rent adjudication process to private residential tenancies.
Find out more about tomorrow's meeting: https://t.co/0K1AIvugcR pic.twitter.com/mOj2ErWY8B
— Local Government, Housing and Planning Committee (@SP_LocalGov) March 4, 2024
But if the gap between the market rent and what the tenant is currently paying is more than 6%, the price can be increased by 6% plus one third of a percent for every percentage point the gap exceeds 6%.
And if the gap between the market rent and the current rent is more than 24%, an increase is capped at 12% of existing rent.
The regulations come into force after the rent cap and eviction ban expire at the end of this month, and will be in force for one year.
Appearing before the committee on Tuesday, tenants rights minister Patrick Harvie denied the Scottish Government was engaging in “anti-landlord rhetoric”, an accusation made by the Association of Scottish Landlords put to him by Tory MSP Miles Briggs.
“I’m certainly sorry that they’ve chosen to use language like that,” the minister said.
“I certainly don’t believe that the Scottish Government has anti-landlord rhetoric, that’s not something that I would recognise.
“We’ve said very clearly, both during the debates on the Cost of Living Act and in relation to the development of the consultation on the wider rented sector strategy – the new deal for tenants – and the development of the new Housing Bill, that we want a private rented sector that has high standards, that is part of a housing system in which all people have their human right to adequate housing realised and that responsible landlords have nothing to fear from regulation.
“It’s about raising the standards in places where we don’t see responsible factors taking place.”
The private rented sector, the minister said, contains a “range” of standards of both affordability and tenants’ rights, adding that the Scottish Government “want to encourage the best and we want to ensure that where standards are not as they should be, we see them raised up”.