A COALITION of industry bodies has stepped up its fight to counter rent control and the ban on tenancy evictions introduced by the Scottish Government.

Three groups – the Scottish Association of Landlords (SAL); Scottish Land and Estates (SLaE) and Propertymark – have submitted a petition to the Court of Session in Edinburgh seeking a Judicial Review of the hastily introduced legislation.

They believed the law was disproportionate and unfair, and felt the issue was further exacerbated by the decision to retain rent control for the private rented sector and remove it for the social rented sector from March 1, 2023. Specifically, the petition highlighted:

• The rent control applied irrespective of the financial position of both the tenant and landlord.

• The recent decision by the Scottish Government to remove the cap for social landlords meant a well-off individual renting in the private sector is provided financial protection not available to someone in more challenging financial circumstances in the social sector.

• In the decision to remove the rent control in the social sector, the Scottish Government acknowledged the need for maintenance of these properties but had not given the same consideration to landlords in the private sector.

• The law did not make any distinction, or provide relief based on different circumstances of landlords, between larger, institutional companies who might be able to shoulder increased costs, and individual landlords who cannot.

• The eviction ban created a delay in addressing matters, such as arrears, which adversely impacts landlord cash flow culminating in a reduction in capital value.

The petition argued that by discriminating in the way it did, the law breached the European Convention of Human Rights, which stated: “The enjoyment of the rights and freedoms set forth in the Convention shall be secured without discrimination on any ground such as … association with … property…” The Scottish Government will now be asked if they wish to provide a response before the petition is considered by the court.

Chief executive of SAL, John Blackwood, said: “So far, the result of the Scottish Government eviction ban and rent freeze has been just as concerning as we predicted. Landlords selling up loss-making property is further reducing housing supply, despite ever increasing demand. The result is the cost of finding a new home is actually increasing for renters.

“While the Scottish Government saw fit to raise council and housing association tenants’ rents, so that social landlords can do repairs and improvements, it failed to realise that private landlords were faced with similar financial pressures.”

“The ministerial statement in parliament recently and a subsequent announcement made it perfectly clear the Scottish Government plans to continue with eviction ban and rent increase restrictions in the private rented sector beyond March 31. Landlords have had enough. We must stand united to protect our property rights by challenging this unfair legislation in court.”

Chief executive of SLaE, Sarah-Jane Laing, added: "Around 340,000 households, a seventh of all homes in Scotland, are provided by the private rented sector and it is vital that government enables a well-functioning system that balances the rights of both tenants and landlords.”

"Regrettably, in recent times the Scottish Government has sought to unfairly penalise private landlords, such as SLaE members who provide a vital supply of homes in our rural areas, many at below market rents.”

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“Farms, estates and other rural businesses have taken steps to support tenants, employees and other local businesses throughout Covid and the cost-of-living crisis. All we have asked for is a fair approach to allow landlords to reasonably increase rents thus enabling investment in properties and to be able take timely action when faced with significant rent arrears and other issues,” she said.

"The decision to submit this petition is not one that has been taken lightly. The announcement from the minister is too little, too late and the figure of 3% appears to be plucked from thin air. For too long, the Scottish Government has sought to disregard evidence provided by the sector and has been reticent in recent months to engage in any form of constructive dialogue."