The Cost of Living (Tenant Protection) (Scotland) Act 2022: report -1 October to 31 December 2023

Executive Summary

Overview

To respond to the emergency situation caused by the impact of the costs crisis on those living in the rented sector, the Cost of Living (Tenant Protection) (Scotland) Act 2022 (“the Act”)^[1] introduced a temporary, variable rent cap^[2] and a temporary moratorium on evictions, along with increased damages for unlawful evictions. These measures can only remain in force provided it is necessary and proportionate. The Act also contains powers to temporarily modify the rent adjudication process in connection with the expiry or suspension of the rent cap.

The Scottish Government legislated on the basis that emergency action was required to respond to the exceptional economic circumstances being faced across Scotland as a result of the costs crisis. In seeking Parliament’s approval to pass the Act enabling us to respond to the crisis, the Government has made clear:

• that the powers taken are necessary and proportionate in order to respond to the costs crisis and will last only as long as required; and
• that the Scottish Parliament have continued oversight of the powers and hold Scottish Ministers to account for their use.

As required by the Act, this report covers the period 1 October 2023 to 31 December 2023 and is the final statutory reporting period under the emergency legislation with Part 1 of the Act expiring on 31 March 2024 at the latest.^[3]

This report provides a review of the status and operation of the remaining provisions in Part 1 setting out the Scottish Government’s position on the necessity and proportionality of the measures. As part of the review process, a consultation exercise has taken place with local authorities, and a wide range of stakeholders that represent the interests of tenants, landlords and financial institutions/investors that may be affected by the Act.

Specifically, the report will cover the following:

• how any of the remaining powers conferred by Part 1 have been exercised (section 9(2)(a));
• the steps that Scottish Ministers have taken to meet the requirement in section 3 to ensure that tenants affected by the provisions of Part 1 receive appropriate information, advice and support for the period during which Part 1 remains in force (section 9(2)(b));
• the status (whether or not any power under a provision has been exercised, whether it is still in force, whether it has been suspended or revived or expired during the reporting period) (section 9(2)(c)(i) and section 9(5));
• a statement that the Scottish Ministers are satisfied that the status of those provisions is appropriate (section 9(2)(c)(ii)); and
• a summary of how the views of those consulted were taken into account by the Scottish Ministers in finalising this report (section 9(3) and (4)).

This report also sets out the legislative changes that have been made to the Act since it was introduced in October 2022, including where provisions have been expired, suspended, varied and extended.

The end of this reporting period for the Act was 31 December 2023, and the report is being published within 14 days of the reporting period ending, as per our duty to do so. This helps ensure that the Scottish Parliament has regular oversight of the legislation, allowing it to hold the Scottish Ministers to account for their use of the powers available to them, and is important as part of our commitment to transparency.

Statement by Ministers on their satisfaction that the status of the Part 1 provisions is appropriate (required by section 9(2)(c)(ii) of the Act)

This report covers the period from 1 October to 31 December 2023. Scottish Ministers have undertaken a review of the remaining provisions of Part 1 of the Act, in order to consider whether those provisions remain necessary and proportionate in connection with the cost of living.

At the end of this reporting period, the economic analysis indicates that although there has been some improvement the economic challenges continue to impact on those who rent their home and therefore, having considered the outcome of this review, Scottish Ministers are satisfied that the status of the remaining Part 1 provisions in the Act is appropriate at the end of this reporting period. This will be kept under review going forward.

Scottish Ministers have also undertaken a review of the Scottish Statutory Instruments (SSIs) related to the Act and are also satisfied that the status of the SSIs, at the end of this reporting period, is appropriate.

Patrick Harvie MSP

Minster for Zero Carbon Buildings, Active Travel and Tenants’ Rights