Tuesday, 11 February 2020

Are the Rent Controls coming?.....


Over the years some of the many changes we have seen effect the Private Rented Sector have had their origins in Scotland

In 2016 The Private Tenancies (Housing) (Scotland) Act was introduced which streamlined the Private Rented Sector and phased out the Scottish equivalent of Assured ShortHold Tenancies, something we are now seeing happen in England in the next couple of years, this legislation also introduced Rent Pressure Zones, giving local authorities powers to cap rent increases in specific areas, mirroring many City rent control policies that can be seen across Europe.
In addition, Scotland also introduced a landlord register, making it a criminal offence for a landlord  to rent out a property if they were not registered.

So could  Rent caps now  be closer that we think for England too?

MSP Pauline McNeill, has laid before the Scottish Parliament her private members Bill named, Proposed Fair Rents (Scotland) Bill

This bill proposes to cap annual rental increases across Scotland to 1% point above inflation (measured according to the consumer price index (CPI)

This would apply to both new tenants (if the property has been let previously) and existing tenants. It would be “grandfathered” for a new tenant where the property has been let previously, meaning when a property is let out to a new tenant, the landlord could only charge the previous rent, increased by 1% point above inflation.

There will be provisions for landlords to request an annual increase which is higher than the cap to reflect improvement works that have been carried out on the property, this work would need to be assessed before the cap restriction is removed allowing a landlord the higher increase.

It is also a requirement of the Bill, that landlords update the Land registry with any changes in rent.
This will have the effect, not only of recording a specific rent to ensure it is not rising faster than inflation, but also of creating a comprehensive database of rents, resulting in a robust dataset of actual market rates.


It is currently a criminal offence for a landlord to rent out a property without registering it on the Scottish Landlord Register. A landlord can be fined up to £50,000.50 It is also a criminal offence to knowingly fail to supply full information in the registration application and a landlord can be fined an amount not exceeding level 3 on the standard scale, which is currently £1,000.51 This Bill would simply expand the duty on landlords to state the level of rent they are charging. This will ensure that when landlords increase the rent it does not exceed one percentage point above inflation.

So if this Bill does receive the Scottish thumbs up and given how quickly we see changes migrate to the English PRS, could we be seeing Rent Controls in England in the next 3-4years? 



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