Scotland’s Court of Session has come down in favour of the Scottish Government when it comes to rent controls.
A case against the Scottish Government’s controls had been raised by the Scottish Association of Landlords, Propertymark and the Scottish Land & Estates body.
Specifically, the three organisations wanted a Judicial Review in respect of the Cost of Living (Tenant Protection) (Scotland) Act 2022, in which the rent controls were contained.
But the decision has found in favour of the government, ruling that the legislation is not unlawful and does not breach landlords’ rights under the European Convention on Human Rights.
The crux of the judgement is that it is up to parliament, not the courts, to decide what situations justify ‘emergency legislation’ and to decide what a ‘proportionate response’ to that emergency is.
SAL says it is disappointed by the court decision but proud to stand up for and defend the rights of those providing homes in the private rented sector by challenging policy and legislation that is disproportionate and damaging to the sector.
A statement from SAL says: “Despite the court accepting our petition as having merit, and allowing the case to proceed, the outcome is nevertheless disappointing. However, by taking our fight to the Court of Session the government will hopefully think twice about introducing disproportionate legislation without consultation in the future. There is no doubt that this decision will further exacerbate the housing crisis in Scotland as more landlords will inevitably sell up, further reducing the number of homes to rent in Scotland.”
And Propertymark describes the news as “hugely detrimental to the Scottish private rental sector” and the decision confirmed by the courts now enables the Scottish Government to start implementing this “fundamentally flawed policy.”
Propertymark insists that the Scottish Government’s policy of rent controls has not resulted in any measurable benefits, and in fact rents continue to increase across Scotland, recording an overall 13.7 per cent annual rise as at Q3 2023, sending average rents within the region of £1115 per month.
Many landlords have expressed serious concerns they may be forced out of the sector entirely. However, the true extent of any exodus to date remains unknown until the next Scottish Housing Survey is published in full, having been scaled back since the onset of the Covid-19 pandemic.
Nathan Emerson, CEO at Propertymark, says: "The private rented sector is a crucial provider of housing and has been incredibly let down by a clear lack of understanding which is now driving good landlords away from the private rented sector. The economics of providing high quality homes is becoming alarmingly unviable.
"Private landlords currently commit to providing homes on a huge scale across Scotland and they must be assured that they can cover all costs. When developing policies that directly affect the private rented sector it’s vital that ministers fully understand the investment economics that sit behind the supply of high-quality homes to rent. Ministers must ensure housing policies include wide ranging impact assessments to ensure the system is fully workable for landlords, tenants, and agents alike.”
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I was watching Rayner on LBC the other day on X. It was published 24 Oct. Someone who housed asylum seekers and drug addicts said he needs S21. The tenants get one chance or they’re out. It’s a good deterrent. He has had to use it. He says he needs it. Would you still abolish S21 for his type of landlord she’s asked? After listening to him nodding away positively she without hesitation just says a firm yes.
Westminster are a bunch of clowns 🤡🤡🤡🤡. I see no hope for landlords here at all 🪦🪦🪦🪦
You should try being in Scotland. It’s an absolute **** show, thanks to Holyrood!
I’m sure. I fear England will go the same way under Labour. They are 100% tenant biased. Landlords will lose their properties forever is not off the cards. Rent being paid or not!
If Labour do go that way and I absolutely believe they will - I do wonder how many Landlords will automatically put their rents up by the max each year when previously they often did not put up rents at all or perhaps every two years etc simply because their choice/flexibility has been taken away?
Catherine. My properties are in Wales where new contracts have already been implemented. I never used to put up rents, but for the last 2 years I have increased all my rents by 10% PA, or rate of inflation dependent on the contract and will now continue to do so in the future.
Catherine. Labour will introduce a rent freeze too!
Cathrine, I am currently raising all my rents from below market value to full market. If a rent freeze comes in I can’t afford not to be at market value and will raise rents as per the max allowed as frequently as allowed.
Raynor is truly an awful woman, a total crowd pleaser, she literally has no concept in anything that she blabs about.
The interview Nick mentioned is on Property 118.
It is entitled "Angela Rayner faces fury from Landlords over Section 21 removal".
Labour don't seem to be going to phase in the loss of Section 21. Section 21 may go straight away - as soon as they take office.
@ Ellie
Ms Rayner told the landlord that no-fault evictions would be abolished immediately under a Labour government.
So we have it from the horse's mouth. Sell now while you can.
I was very surprised that she said that, AL. It is very predictable what will happen.
Is there an intention to deliberately create a housing emergency?
@ Ellie
I am beginning to think it is deliberate. What with this and the marches over Palestine, I am wondering if they are trying to see just how far they can push the public around.
All I know is that she is not acting in the best interests of tenants by saying what she said.
If the Section 21 loss had been phased in over a couple of years then the situation could have been manageable perhaps - still very destructive though.
There is now a very high level of unpredictability about what will happen, perhaps as early as the Spring.
I think you are over analysing this. You are dealing with an ignorant Lefty. A gym slip mum and grandmother at early 40s. She’s all about take take take either on benefits or striking for more from employers. Not about supporting hard working people with anything more than a remote amount of wealth.
Landlords are the Devil.
Don't you think that she has advisers who would point out what will happen? Or are they just all of one mind - support tenants irrespective of the consequences. Still seems a bit odd to me.
Do they perhaps want landlords to serve notice while the Tories are in Government, not when they have taken over?
There are advisers. But all parties seem to have gone pro-tenant. They want to announce more measures than the other party to show they are helping. But it’s really a race to the bottom now. Behind the scenes they know it won’t help but for votes in one way it looks like they are helping.
They do predict some consequences. Of course some are not thought about or were considered to have had less of an impact than they did.
If the Section 21 loss is not going to be phased in, then many landlords' plans will have to change.
I suppose a key question now is what is the most likely date for the next election?
One would have thought January 2025 might be wisest, but if the Tories did better than expected in the May 2024 local elections, then they might call a general election straight away.
If you have already made up your mind to sell then an earlier loss of Section 21 won't matter providing you have got the properties empty.
Another issue though is whether Tory Renters Reform legislation will be in force before the next election. I heard that the review committee has been asked to finish their work by December 5th.
Watch the homeless situation get even worse and worse now with the responsibility laid solely at the Scottish Governments and Patrick Harvies door !
THE RENTERS REFORM BILL and Removal of Section 21 caused Homeless and the High Rents.
So why not remove the cause instead of introducing more legislation to deal with the consequences of the BiIl.
Since when do the Courts disagree with Government ask me brother am I a Rogue.
Courts always disagree with the government when it is making decisions preventing the removal of illegal immigrants who are contributing to the housing shortage.
William, haven’t I read about Cases where they split the spoils. Government takes 50%, Courts 37.5% and Councils 12.5% nice one.
I have a cutting some where from that case in Southend.
And Edinburgh ia about to announce a housing emergency! You couldn't make it up!
It’s unbelievable in Scotland! I’m out as soon as it’s possible to do so.
1 property sold last month, 9 going soon. Well done Holyrood, Scotlands largest circus!
Already in Liverpool, Students are having to find accommodation in Manchester and commute .
My rents went up by over 30% in June thanks to the shortage of rental properties caused by the SNP and their little Green helpers.
Their next plan is to outlaw rent increases for new tenancies and allow joint tenants to leave with no solutions as to who pays the shortfall, remaining tenants or landlords.
Disaster for Scotland and a template that Labour will copy across England. There is apparently no end to this brainless war on the PRS.
Nonetheless, we must fight on and with far greater vigour. Take note NRLA!
How do you intend to combat it ?
Through human rights legal challenges?
We have been proven to be ineffective against legislation. Well done to the organisations that challenged it in the Scottish Court. But look at the outcome!
I think the only way they will take note is if we keep selling.
I fear we will be ineffective, all politicians hate us ( unless they are landlords ) our only defensive action is to sell !! 💵 Labour will crucify us ☠️☠️
All of my rents on flats & houses are being increased on 1st of January in preparation for Labour's rent controls which I am sure that, despite what is happening in Ireland, Scotland & Wales, the idiots will bring in as soon as they are elected.
My long term tenants have not had a rent increase for 5 years - the people suffering now & in the future from the collective idiocy of Gove & the Labour party are the tenants.
Ironically, this verdict was announced the same day that Edinburgh City Council announces a housing crisis. You can't help thinking the crisis was planned all along.....even if unintended planning by politicians. Still will they stop, listen and learn? .....they have not done so to date.
Former rental properties bought by owner occupiers are invariably occupied at a lower density than when they were rented out.
A 6% reduction on buying further rental properties would help the shortage but a 6% stamp duty penalty doesn't.
I was listening to Rayner on LBC. I was bracing myself for an hour of yet more landlord-hate, as the route of all society evils, etc. I decided it was my duty to listen, so braced myself. I was delighted to hear landlord after landlord phoning in. All were eloquent and composed informing of the negative impact of current proposals. I felt so proud of them all. Finally a voice. What was sad was, evidently, how little Rayner understood of the sector. After a few landlords had spoken, Rayner was feeling a bit uncomfortable (having to placate these 'evil' landlords) and made an appeal for tenants to phone in with negative stories. To take her back to safer ground of landlord bashing. Disappointing as, having listened to all the landlords talk, a little sparkle of hope thought maybe, just maybe, she might actually listen this time. But no. Landlords say things that go against their policies so they can't be seen to agree with anything the landlords (ie the people who do the job and know their sector) say.
Politicians should be required, as a matter of law, to be circumspect about the consequences of their policies. They cannot adopt a simplistic view that we will increase rights for tenants by giving them security of tenure without examining the consequences of seeking to do that in reality.
Like you, I also keep hoping that it won't be too bad under Labour....I have 2 houses left with good tenants....Im in such a state of worry I can't bring myself to put these on the market, but my gut instinct is to sell, reading today's article and the comments of all these experienced people should really push me to get on and sell!!!!
You're not alone Rebecca. We are all trying to work out the best course of action and the time frame in which to carry out any plan. Of course, existing tenants are a very big concern, as well, particularly when we are on very good terms with them.
Labour hasn't said anything helpful to allay fears and ensure stability for everyone concerned. It looks like Section 21 could go as soon as they take office.
And the Telegraph headline is Edinburgh declares housing emergency as SNP rent controls backfire.
If these decision makers had a job in the real world they would be fired in the first week.
Never a truer word spoken.
You think they could even get a job in the real world?
Wasnt aware this was going on, but I am suprised. A judicial review is there to challenge the lawfullness of the decision taken, ie they didnt have the authority to make that decision, or they contravened an existing piece of legislation in making that decision, but not to challenge the possible outcome or repercussions that decision might have on X, Y or Z which is speculative. The summary judgment very politely says they were barking up the wrong tree with no proof of much at all, just simply they didnt like it.
In fact, the Human Rights Act 1998 can be the basis for ‘illegality’ grounds in a judicial review. Protocol 1 Article 1 perhaps could have been used. Public authorities can restrict what you do with your property but only where they can show it is necessary for the public interest - and there is a housing crisis due to their policies, so not in the public interest.
Scotland
Beautiful country , lovely friendly people
Dreadful politicians
It's time these greedy agents we're rained in and I hope happens all over this country..No wonder people can't afford those rents.. I've no sympathy for them.
Another barely literate comment from SBR. The point is, Sandra, those who WORK hard CAN AFFORD these rents. It's people like you who cannot and have to fight for the few available social housing properties.
Don't worry about it Sandra I have no sympathy for you or your sort, agents and landlords will do just fine without you
I've got a suggestion where you never have to deal with unscrupulous landlords and "greedy ' agents.
Look for a property that isn't on the private rental market. Long term Airbnb is an option. But the costs will be 10x that if a rental property and good luck trying to gind one
Or
Buy a tent
What about buying a caravan? That could be cheaper then renting.
The reign in speign falls meignly down the dreign
Your lack of understanding is quite simply astonishing!
If you rely on rental property for your home, I suggest you actually find out why you will soon have nowhere to live.
But maybe that's too much effort....It's your life!
The glorious ECHR
Protector of the rights of foreigners and the benefits class.
No protection for British taxpayers, entrepreneurs and those with the self respect of not relying on the state to wipe their nether regions.
I see the word "emergency situation" popping up frequently.
Be afraid.
The only way that the SNP and Labour and possibly even the Tories can temporarily cushion or appear to cushion the nationwide homelessness crisis that's coming , is to bring in the sort of "emergency dictats seen during lockdown.
1 An immediate ie: instantaneous, ban on evictions.
2. An immediate ie: instantaneous cap on Rents, which will probably be well below current market levels
These most likely won't even need parliamentary approval or legislation. Because emergency measures are within the powers of the Executive.
This cost of this emergency situation will therefore be entirely carried by landlords.
It may be "emergency" but that doesn't mean temporary or even short term. It will stay in place until there is no longer a housing crisis, currently estimated to be around the 12th of Never.
Don't wait to see if the RRB gets passed, or whether Sec 21 survives, or whether Labour and the SNP get re-elected.
Act NOW or It may be too late, they are probably already planning on declaring the emergency on day one and you'll have no time or advanced warning to escape.
You hit the nail on the proverbial
Excellent post
Spot on Henry and with sooo many landlords emptying their properties in the coming months, homeless figures will be going into orbit, leaving whatever so called government in charge( I use the phrase loosely) with little option but to empty all the hotels of illegal migrants and replace them with the the homeless families, am I being pessimistic or just realistic.
I said it previously that the Scot Gov have basically taken a 2nd charge by stealth in that we no longer have any control over our properties and they keep legislating the mental surely just to **** us off.
One recent thing was to get water samples to prove no trace of lead
Henry: Excellent post exposing the blunt probability of what is to come. I am selling in part because I refuse to ‘hand-over’ my life’s work or to be a ‘trapped and press-ganged provider of social housing’, but also because it’s about the only form of ‘action’ left to take.
Agreed. Me too. I won’t have any control over valuable assets. But some nobody can move in, stay forever, move a zoo in, grow mould everywhere and there’s nothing I can do but keep fixing everything. I predict a lot of landlords running at losses with newly empowered vexatious tenants making life difficult and seeking compensation. Especially when you want to sell and they will lose their home. Even some good tenants will turn bad. Perhaps pushed to do so by councils. It will be much harder for them in years to come to find somewhere else.
The biggest problem we face is that politicians seem to think they can do anything to us using the argument that it is in the public interest.
They do that without any evidence at all that it is in the public interest.
I too am selling, just had my house back after a bailiff evicted a non paying tenant. Had 3 estate agents round and the Norwich house prices seem to be holding up well.
Will give the house a good makeover and then get it on the market.
Andy, I had 2 agents around. I asked about improvements. I could do with a new front door, front bay window, kitchen, flooring throughout and painting throughout. Both advised don't bother people won't pay any more for it.... I've decided to paint myself at weekend (when I can be bothered) and put on the market in the spring.
They’ve already admitted the lockdowns achieved nothing
Obviously they’ll do them again , just following orders !
Putting properties for sale is not viable option for a lot of LL's, as even the low prices, there are not many buyers around. Investors are looking for bargains. I have a good mind to sell my residential property within 3 years and move into one of my rented house. Another flat, I shall not rent it out either. Most of my properties are student let and they usually stay 1 to 3 years, so no issues about them wishing to be sitting tenants. LL's wants to sell, but are there any buyers? It is easy said than done.
Such a shame politicians like Angela Rayner, Gove, do not understand the PRS and ranting on about building and reform bill and abolition of s21, as they do not have properties for social housing. They are more like children throwing tantrums and country allows them to get away with policies that are not right.
Yes they have no properties. They just behave like kids.
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