Cost of Living (Tenant Protection) (Scotland) Act 2022 - proposed extension: statement of reasons
We have prepared this Statement of Reasons to set out why The Cost of Living (Tenant Protection) (Scotland) Act 2022 (Amendment of Expiry Dates and Rent Cap Modification) Regulations 2023 (“the extension regulations”) should be made.
Footnotes
1. Cost of Living (Tenant Protection) (Scotland) Act 2022 (legislation.gov.uk)
2. Cost of Living Bill - Key Statistics - gov.scot (www.gov.scot).
3. See Section 4, Updated Economic Context, at Cost of Living (Tenant Protection) (Scotland) Act 2022: first report to the Scottish Parliament - gov.scot (www.gov.scot)
4. These have been updated where additional data has been released since the report was published.
5. The ONS data attempts to model rental trends across both new and existing lets, which is an important reason why its level might differ from letting agent data. However, due to data limitations on rents for existing lets, this is achieved primarily by a methodological assumption that a rental record will remain unchanged for a period of 14 months. The rental index will therefore not directly pick up the impact of the rental freeze in the initial six month period of the operation of the legislation.
12. Policy Memorandum accessible (parliament.scot)
13. Cost of Living Bill - Key Statistics - gov.scot (www.gov.scot).
15. This estimate was informed by findings from the RentBetter research on landlord behaviour, as discussed in the BRIA/Financial Memorandum
16. Under the Private Residential Tenancy, the rent cannot be increased until at least 12 months has passed since the last rent increase.
18. Zoopla wrapped: 2022 in review - Zoopla
19. Note that this is the higher than the 10% referred to in the BRIA /Financial Memorandum, as that estimate applied to variable rate mortgages only, while this estimate has been extended to include the share of fixed rate mortgages which are projected to reach their end of term over a 12 month period. This number is also higher than the figure of somewhat over 10% referred to in the Updated Economic Context section in the first report to Parliament, because that estimate also took into account the share of properties where the tenancy would have ended. Tenancy turnover is already taken into account here when calculating the estimated number of all properties (with or without a mortgage) which might be affected by the legislation.
20. See further discussion in Updated Economic Context section in the first report to Parliament.
21. This estimate was based on variable rate mortgages only, as discussed above.
Contact
Email: housing.legislation@gov.scot
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