SFHA response to final extension of Cost of Living Act
This is the final six-month extension permitted under the Act, which will sunset in spring.
The Scottish Government extended the Cost of Living Act (Tenant Protection) (Scotland) Act 2022 until 31 March 2024. This is the final six-month extension permitted under the Act, which will sunset in spring. For RSLs, it means the following measures will continue:
- Mid-Market will continue to be capped at 3% under the Private Residential Tenancy restrictions
- The moratorium on evictions will continue, except in a number of specified circumstances, including:
- Antisocial behaviour
- Criminal activity
- Arrears of over £2,250
When commenting on the Act’s final extension, Tenants' Rights Minister, Patrick Harvie, repeated commitments to a New Deal for Tenants in an upcoming Housing Bill but confirmed the introduction of long-term rent controls will not apply to the social sector.
This week, SFHA also responded to the recent call for evidence to inform a Cost of Living Act Parliamentary report on the necessity and proportionality of the legislation. Our response highlighted the fact that the measures in the Act offer minimal additional security or protection to social tenants and may have negative effects overall. In the social sector, evictions are a tool of last resort and RSLs do not evict into homelessness. We expressed concerns for the increased levels of arrears tolerated by the Act, with ARC data supporting member feedback that £2,250 is too high to be successfully managed and may be associated with observed increases in abandonment, as well as stress to tenants and reduced wellbeing.
SFHA continues to call for Mid-Market Rent provided by RSLs to be reclassified as social rents. Our response outlined the threats that the 3% rent cap poses for MMR provision and underscored its important contributions to the sector’s mix of affordable options. We recommended that investment into new supply of affordable housing and local partnerships delivering ‘no evictions into homelessness’ guarantees are the most effective ways to protect tenants from economic pressures beyond the temporary measures included in this Act.
For additional details or discussion about SFHA’s submission and the Cost of Living Act, please contact Annabel Pidgeon, apidgeon@sfha.co.uk.