Fair Rents (Scotland) Bill

Author: Kate Berry and Kevin Banks

PDF Published: Thursday 18 Feb 2021 (SB 21-09)

Expand
Overview
Report

Hide

Hide

Overview
Report
- Summary of the Bill
- Private rented housing: context
- Private residential tenancy: rent provisions
- Impact of new tenancy rent provisions
- Private rents
  - Private rents: longer term trends
  - Private rent affordability
  - Rent control debate
- The Bill: an overview
  - Local Government and Communities Committee call for evidence
- The Bill: detail
  - Section 1: fair rent consumer cap
    
    Section 1: call for evidence responses
  - Section 2: fair open market rent
    
    Section 2: call for evidence responses
  - Section 3: additional information on the landlord register
    
    Section 3: call for evidence responses
  - Section 4: statement on impact of right to a fair rent
Sources

Graph showing variations in average monthly rents for a two bedroom property yet to end September 2020 across broad market rental areas in Scotland. Lothian is the highest at over £900 while Ayrshires are lowest at around £450.

Image: Figure 1: Two bedroom Properties - average (mean) monthly rents (£) by broad rental market area, year to end September 2020

Graph showing the % rise in rents for a two bedroom property by broad market rental area in Scotland over the period 2010 to 2020. Lothian has seen the highest cumulative increase with a 45.9% increase, above the cumulative CPI of 21.5%.

Image: Figure 2: % rise in average rent for a two bedroom property 2010-2020 by broad market rental area

Scottish Government . (2020). Scottish household survey 2019 annual report. Retrieved from https://www.gov.scot/publications/scottish-household-survey-2019-annual-report/ [accessed 5 January 2021]

Scottish Government . (2020, October). Private Housing (Tenancies) (Scotland) Bill : policy memorandum. Retrieved from https://www.parliament.scot/S4_Bills/Private%20Housing%20(Tenancies)%20(Scotland)%20Bill/SPBill79PMS042015.pdf [accessed 5 January 2021]

Scottish Government. (2017, November). Private Houisng Tenancies (Scotland) Act 2016: rent pressure zones. Retrieved from https://www.gov.scot/binaries/content/documents/govscot/publications/advice-and-guidance/2017/11/rent-pressure-zone-rpz-application-requirements-local-authorities/documents/00527741-pdf/00527741-pdf/govscot%3Adocument/00527741.pdf [accessed 11 January 2021]

Scottish Government . (2020). Rent Adjudication Cases. Retrieved from https://www.gov.scot/binaries/content/documents/govscot/publications/transparency-data/2018/10/private-residential-tenancy-rent-adjudications/documents/rent-service-scotland-prt-published-decisions/rent-service-scotland-prt-published-decisions/govscot%3Adocument/ExportRentAdjudication17.11.pdf [accessed 6 January 2021]

Andy Wightman MSP. (2020, November). Soaring rents show need for rent controls . Retrieved from https://andywightman.scot/wp-content/uploads/2020/11/Rent-Pressure-Zones.pdf [accessed 20 November 2020]

Robertson, D. and Young, G. (2018, March). An Evaluation of Rent Regulation Meaures within Scotland's Private Rented Sector. Retrieved from https://scotland.shelter.org.uk/__data/assets/pdf_file/0011/1527590/Shelter_RentReport_May18_screen3_1.pdf/_nocache [accessed 5 January 2021]

Common Weal and Living Rent . (2019, February). The rent control Scotland needs. Retrieved from https://www.scottishhousingnews.com/uploads/documents/Rent%20Controls%20%282%29.pdf [accessed 5 February 2021]

Progressive Policy Research Group. (2020, October). How to fix rent pressure zones . Retrieved from https://static1.squarespace.com/static/5f5939742e522410a0ea9fea/t/5f98942fafe6b4792a0d9457/1603834976418/How+To+Fix+Rent+Pressure+Zones.pdf [accessed 5 January 2021]

Indigo House in association with IBP Strategy and Research. (2020). Research on the impact of changes to the private rented sector tenancy regime in Scotland. Retrieved from http://www.nationwidefoundation.org.uk/wp-content/uploads/2020/11/Rent-Better-Wave-1-Summary_print.pdf [accessed 6 January 2021]

Scottish Parliament . (2020). Written Question S5W - 32288. Retrieved from https://www.parliament.scot/parliamentarybusiness/28877.aspx?SearchType=Advance&ReferenceNumbers=S5W-32288&DateTo=19/01/2021%2023:59:59&SortBy=DateSubmitted&Answers=All&SearchFor=All&ResultsPerPage=10 [accessed 5 January 2020]

Herald Scotland. (2021, January 17). Calls for rent controls to be introduced in Scotland. Retrieved from https://www.heraldscotland.com/news/19017512.calls-rent-controls-introduced-scotland/ [accessed 8 February 2021]

Livingstone, M, Berry, K, Gibb, K, Bailey, N. (2018). Private renting reforms: how to evidence the impact of legislation . Retrieved from https://digitalpublications.parliament.scot/ResearchBriefings/Report/2018/11/14/Private-renting-reforms--how-to-evidence-the-impact-of-legislation-1 [accessed 8 February 2020]

Bailey, N. (2017, August 30). The (multi-million pound) potential of private landlord register data. Retrieved from http://ubdc.ac.uk/news-media/2017/august/the-multi-million-pound-potential-of-landlord-register-data/ [accessed 8 February 2021]

Scottish Government. (2020, November). Private Sector Rent Statistics 2010-2020. Retrieved from https://www.gov.scot/publications/private-sector-rent-statistics-scotland-2010-2020/ [accessed 30 November 2020]

Mean, G. (2018, September 3). How to measure affordability. Retrieved from http://housingevidence.ac.uk/wp-content/uploads/2018/09/R2018_02_01_How_to_measure_affordability.pdf [accessed 5 January 2021]

Congreve, E. (2019). Poverty in Scotland 2019. Joseph Rowantree Foundation.

Congreve, E. (2018). Poverty in Scotland 2018. Joseph Rowantree Foundation.

Bailey, N., & McNulty, D. (2017). Inequality and Poverty in Scotland in The Scottish Economy. Oxton: Routledge.

Dunning, R., Ferrari, E., Hoolachan, J., Keskin , B., Moore, T., O'Brien, P., … Powell, R. (2020, May). Affordable Houisng Need in Scotland - Post 2021. Retrieved from https://scotland.shelter.org.uk/__data/assets/pdf_file/0010/1925668/Affordable_Housing_Need_in_Scotland_Post-21_final_report.pdf/_nocache [accessed 5 January 2021]

McCormick, J., & Hay, D. (2020). Poverty in Scotland 2020. Retrieved from https://www.jrf.org.uk/report/poverty-scotland-2020

Clarke, A., Morris, S., Oxley, M., Udagawa, C., & Williams, P. (2015). The effects of rent controls on supply and markets. Retrieved from https://www.cchpr.landecon.cam.ac.uk/Research/Start-Year/2015/The-effects-of-rent-controls-on-supply-and-markets/Project-Report/Report

Shelter. (2015). Making Renting Fit for Families: The Impact of Different Forms of Rent Regulation. Retrieved from https://england.shelter.org.uk/__data/assets/pdf_file/0007/1166956/Making_renting_fit_for_families_FINAL.pdf

Turner, B., & Malpezzi, S. (2003). A review of empirical evidence on the costs and benefits of rent control. Swedish Economic Policy Review.

Whitehead, C., & Williams, P. (2018). Assessing the evidence on Rent Control from an International Perspective. Retrieved from https://www.lse.ac.uk/business-and-consultancy/consulting/assets/documents/assessing-the-evidence-on-rent-control-from-an-international-perspective.pdf

Sims, D. (2011). Rent control rationing and community composition: Evidence from massachusetts. The BE Journal of Economic Analysis & Policy.

Arnott, R. (2003). Tenancy rent control. Swedish Economic Policy Review.

Gibb, K., & Marsh, A. (2019). The private rented sector in the UK. Retrieved from https://thinkhouse.org.uk/site/assets/files/1401/cache0719f.pdf

The Evolving Private Rented Sector : Its Contribution and Potential. (2018). Retrieved from http://www.nationwidefoundation.org.uk/wp-content/uploads/2018/09/Private-Rented-Sector-report.pdf [accessed 12 January 2021]

Judge, L., & Tomlinson, D. (2018). Home improvements: Action to address the housing challenges faced by young people. Retrieved from https://www.resolutionfoundation.org/app/uploads/2018/04/Home-improvements.pdf

Scottish Parliament. (2020, June). Fair Rents (Scotland) Bill Policy Memorandum . Retrieved from https://beta.parliament.scot/-/media/files/legislation/bills/current-bills/fair-rents-scotland-bill/introduced/policy-memorandum-fair-rents-scotland-bill.pdf [accessed 5 January 2021]

Scottish Parliament. (2020). Fair Rents (Scotland) Bill as introduced. Retrieved from https://beta.parliament.scot/-/media/files/legislation/bills/current-bills/fair-rents-scotland-bill/introduced/bill-as-introduced-fair-rents-scotland-bill.pdf [accessed 5 January 2021]

Scottish Parliament . (2020). Fair Rents (Scotland) Bill Explanatory Notes. Retrieved from https://beta.parliament.scot/-/media/files/legislation/bills/current-bills/fair-rents-scotland-bill/introduced/explanatory-notes-fair-rents-scotland-bill.pdf [accessed 5 January 2021]

Scottish Government. (2020, June). Fair Rents (Scotland) Bill Financial Memorandum. Retrieved from https://beta.parliament.scot/-/media/files/legislation/bills/current-bills/fair-rents-scotland-bill/introduced/financial-memorandum-fair-rents-scotland-bill.pdf [accessed 5 January 2021]

Pauline McNeill MSP. (2019, May). Proposed Fair Rents (Scotland) Bill. Retrieved from https://www.parliament.scot/S5MembersBills/20190513_Final_Version_(2).pdf [accessed 6 January 2020]

Scottish Parliament. (2020). Proposed Fair Rents (Scotland) Bill: summary of consultation responses. Retrieved from https://www.parliament.scot/S5MembersBills/Final_summary_with_commentary.pdf [accessed 5 January 2021]

Office for National Statistics. (2021). Consumer Price Inflation Tables (table 19). Retrieved from https://www.ons.gov.uk/economy/inflationandpriceindices/datasets/consumerpriceinflation [accessed 12 February 2021]

Last Updated: 9/8 1:39pm

Image: Figure 1: Two bedroom Properties - average (mean) monthly rents (£) by broad rental market area, year to end September 2020

Image: Figure 2: % rise in average rent for a two bedroom property 2010-2020 by broad market rental area

An error occured while loading, please try again in a few minutes.