³ÉÈË¿ìÊÖ

Targeting support to those who are in receipt of certain benefits is an alternative to means testing. In essence, qualifying benefits assist in a means-testing manner, but that approach also helps to check other criteria, such as those on residency and identity, which then reduces the evidence requirements on the agency. Clearly, if we were not doing that and had our own means testing, more information would be required from the clients and there would be a more onerous administrative system. Those are the benefits of having the attachment to reserved benefits as a qualifying condition.

We said that it was the responsibility of the UK Government to take action. When there was a change in UK Government and that action was not taken, we felt that we had no alternative but to step forward where the UK Government had consistently failed to do so on that issue. For the sake of brevity—I do not have all the FOIs and PQs in front of me, so I will not read them out—I refer you to all the PQs and FOIs that you have submitted, which I believe have answered your question.

There are a number of areas in which the UK Government can and should take further action. We have mentioned a number of those, particularly in relation to social security. It would make a big difference to families if the UK Government scrapped not only the two-child cap but the bedroom tax, the benefit cap and the five-week wait for universal credit. Scrapping the benefit cap, the two-child cap and the bedroom tax, which we are already mitigating, from the next financial year would also make an enormous difference to the amount of money available to the Scottish Government to do further work on child poverty measures. Those are the areas where the UK Government can and should do more.

There are a number of other areas that the UK Government is keen to work on. I have already mentioned the social tariff in the energy sector. There is a great deal of work that only the UK Government can undertake on energy costs. Families are often hardest hit by energy costs and the inadequacies of benefits, which are both issues that are reserved to the UK Government.

I point to the other aspects that I have mentioned, including the topics in the recent green paper and other areas that the UK Government is proceeding with but has not even consulted on, such as changes to disability benefits. I hope that the UK Government will tackle some of those areas.

We have set out a number of clear asks of the task force, and I would be happy to provide further information to the committee in writing about the specifics. We have also gone through employability and changes to child tax credits that would help with childcare. We have provided a lot of detail on the type of work that could be undertaken in a number of reserved policy areas that would positively impact on child poverty. If done correctly, those measures could work very effectively alongside the work that has already been undertaken by the Scottish Government. There is still an opportunity for both Governments to work together on that.

We are unsighted on where that task force report is going, and I accept that UK Government ministers need that private space to do their own policy formation; that is entirely understandable and is usual practice for Governments. However, particularly as we move closer to publication, we will have to have a better understanding of the implications of some of the UK Government’s changes. We do not want to get into some of the examples that we have seen during the past year or so, where changes are made and we then play catch-up on the implications for Scottish Government budgets or services.

Indeed, and part of the challenge is that annual budget setting by the UK Government makes it exceptionally difficult to produce medium-term financial strategies, given that we are reliant on the UK Government for the vast majority of our funding. Regardless of the challenges that that presents, the Cabinet Secretary for Finance and Local Government will endeavour to produce that strategy.

There are challenges within the Government, and decisions need to be taken on how we can deliver services. However, the Scottish Government fundamentally objects to UK Government spending decisions that balance the books on the backs of the most vulnerable in our society, such as disabled people and pensioners, and through the continuation of the two-child cap, for example. All Governments have decisions to make, but I would not choose to take money away from disabled people and pensioners or to continue to take it away from large families.

Graham Simpson’s amendment 73 seeks to place restrictions on private landlords’ guarantor requirements, including for purpose-built student accommodation. I recognise the member’s good intention with the amendment, which I think was prompted by concerns in relation to non-UK domiciled students in particular. However, it could inadvertently have negative consequences for those whom it tries to protect.

Although I understand that views on the place of guarantors in the private rented sector vary, the ability to request a suitable guarantor mitigates the risk for the landlord should the tenant not pay the rent or other tenancy-related costs. During our recent engagement with the Scottish Association of Landlords, it raised significant concerns about the impact of the amendment. For many landlords, asking for a suitable UK-based guarantor is part of facilitating a let that might otherwise not go ahead, such as when the tenant does not have a stable income, has a poor credit score or is unable to provide suitable references. Without a guarantor, the tenancy would be too much of a financial risk for many landlords and would simply not go ahead. The amendment might also have an adverse effect on the landlord’s ability to obtain rent guarantee insurance, which is another safeguard that landlords use to manage financial risk.

Imposing restrictions on the type of guarantor that a landlord could use would be likely to result in a reduction in the number of landlords who felt able to let to students and other low-income tenants, making it harder for the latter to access a home in the private rented sector. I am sure that that is not the outcome that Graham Simpson is seeking, but it might be the end result in practice. As I outlined in relation to amendments that were debated in the group on student tenancies, I also have significant concerns about the impact on PBSA and continued investment in that sector.

Many alternative options already exist for tenants who are unable to provide a suitable guarantor, such as payment of rent in advance or local authority and third sector rental guarantee schemes. Given the potential for negative unintended consequences, I ask Mr Simpson not to press amendment 73.

My preference would be for a non-legislative approach. That is what can be done. The challenge when it comes to guarantors—particularly, but not only, for students—has been recognised for long enough. That non-legislative approach would be my preference. Members might not feel that we can make sufficient progress on those concerns by stage 3 through a non-legislative approach, and they are free to do whatever they wish at stage 3, regardless of what I say. However, it would be my intent to try to work before stage 3 on whether we could take that through in a non-legislative manner.

Amendment 130, in the name of Meghan Gallacher, would ensure that provision is made in regulations that a tenant may pay a tenancy deposit directly to the scheme administrator. I am not opposed to that amendment in principle, but it would be a major policy change that requires careful consideration to ensure that it would be workable and would have no unintended consequences for tenants or landlords.

We already have regulation-making powers via the Housing (Scotland) Act 2006 to make any necessary changes in that regard, and we plan to exercise those powers following passage of the bill to reduce the likelihood of deposits being unclaimed. I am happy to commit that, as part of the work, which requires consultation with tenants, landlords and the tenancy deposit schemes, we will explore the model that Ms Gallacher has proposed in her amendment. That is the appropriate way and time to consider the issue further and to ensure that there are no negative impacts or unintended consequences. I ask her not to move amendment 130, on the basis of the reassurances that I have set out on the work that we will undertake.

Amendment 190, in the name of Maggie Chapman, has two parts: restrictions on the payment of advanced rent and the reduction of the maximum tenancy deposit to one month’s rent. On advanced rent, I recognise the concerns that are being raised. The ability to pay advanced rent is currently one of the options that can help to facilitate a let when a tenant is unable to show that they have sufficient income, cannot demonstrate creditworthiness or cannot provide a suitable guarantor. Current requirements restrict that to no more than six months’ rent.

Although I am sympathetic to the outcomes that are being sought, I have concerns that the proposed restrictions could result in landlords choosing not to rent to tenants who are unable to provide a suitable guarantor or demonstrate that they are able to afford the tenancy, but who could have previously afforded to pay rent in advance. That could create an unintended barrier to obtaining accommodation, potentially increasing the risk of homelessness.

Although I am unable to support the amendment as set out, I wish to explore further with Ms Chapman, should she be agreeable, the potential for a reduction in the maximum amount of rent that a landlord could accept as advanced rent, with a view to bringing back an amendment at stage 3 on that issue.

Amendment 190 also seeks to reduce the maximum deposit payment from the equivalent of two months’ rent to one month’s rent. Although I understand that the intention is to reduce barriers to entering the PRS market, that change might have adverse effects for prospective tenants and could also lead to landlords being unwilling to let to certain tenants—for example, those on lower incomes—given an increased risk of recovering rent arrears or property damage at the end of a tenancy.

In addition, the measures in the bill that create rights for tenants to make category 1 changes to a let property—changes that do not require the permission of the landlord—are based on the current deposit maximum of two months. I fully understand Ms Chapman’s intention, and I am supportive of tenants’ rights, as is clearly demonstrated by the Government’s introduction of the package of measures in the bill. I ask Ms Chapman not to move amendment 190. As I have set out, I commit to exploring further restrictions on the payment of advanced rents for stage 3.

I turn to Edward Mountain’s amendment 184. I understand Mr Mountain’s desire to increase the quality and provision of social housing and to tackle the housing emergency. I share that aim. Although I am keen for unclaimed deposits to be put to good use, I do not believe that it is appropriate for those funds—funds that belong to the people who have lived in the private rented sector—to be used for that purpose.

As we set out when the bill was introduced, we intend those funds to be used to help those who are living in the private rented sector, by supporting the provision of advice, assistance and services and by preventing homelessness. I hope that that will achieve the member’s objective of tackling the housing emergency, although in a different way and through the private rented sector itself.

Amendments 374 and 396, in the name of Paul McLennan, respond to concerns raised by the Delegated Powers and Law Reform Committee regarding the scope of the regulation-making power in section 31 in relation to the use of unclaimed funds. On reflection, I agree with that committee, and those amendments therefore remove the regulation-making power.

In line with the removal of that power, amendment 371 would ensure that unclaimed tenancy deposit funds can be used to support prospective tenants in the private rented sector as well as to support existing tenants. As I have discussed with Mr Greer, that would enable unclaimed funds to be used for projects and activities to support access to the private rented sector. For example, they could be used to support guarantor schemes.

Amendments 372, 373, 375 and 376 make minor and technical changes to the bill. Amendment 377 seeks to provide clarity that the provisions cover existing, and future, private residential tenancies and student tenancies. I ask members to support those amendments to ensure a more robust framework for the use of unclaimed tenancy deposit funds.

In summary, for the reasons given and in light of the assurances that I have offered, I ask Graham Simpson, Ross Greer, Meghan Gallacher, Maggie Chapman and Edward Mountain not to press or move their amendments in this group. If the amendments are pressed or moved, I urge members to reject them but to support the amendments in the name of Paul McLennan.

The reasons that I have set out are, in essence, about the impacts on landlords, particularly on smaller landlords who might still be moving over a local authority boundary and therefore operating in two systems. I appreciate where Mr Greer is coming from and the point that is being made. However, as we have moved through the bill, I have been very conscious of the administrative burden particularly on, but not only on, small landlords, as well as the importance of encouraging people into the private rented sector, both as landlords and as investors. That is why, I am afraid to say, Mr Greer and I disagree on the amendment.

The amendment also appears to seek to link fee levels with compliance with other legal requirements. I reassure members that compliance with the law is a key component of the fit and proper person test applied by local authorities, and it is not necessary to link that with the level of fees. A critical consideration is already made in determining whether someone is suitable to be a landlord at all.

Amendment 419, in the name of Mark Griffin, would reduce the registration period to one year from three and require more than 200,000 landlords to re-register and potentially pay an annual registration fee. That would be costly and burdensome for landlords and local authorities. As I am not persuaded by the argument as to why such a significant change to the operation of the registration process is considered necessary, I ask the member not to move amendment 419.

Amendment 455, also in the name of Mark Griffin, would open up access to the data held on landlord registers. As applications include personal and sensitive data, careful consideration of data protection rules would be needed before considering the publishing of such information—if opening up such access would even be possible. Elements of the register are already searchable by the public, including basic details of landlords, letting agents and property addresses, or are available upon application.

The fact that a landlord has been entered on the register confirms that a local authority has made the necessary assessment that they are a fit and proper person, and such a determination means that the landlord has provided the prescribed information needed for such assessment. There is also a wide range of information that tenants are already entitled to request from their landlord. Therefore, I cannot support the amendment.

Amendment 503, in the name of Maggie Chapman, proposes to add new considerations to the fit and proper person test for landlord registration, including where the landlord has tried to raise the rent above the cap, has failed to set the rent in accordance with rent control restrictions, or has been subject to a wrongful termination order. Although I share Ms Chapman’s view that the assessment of suitability to be a landlord is a critical part of the protection for tenants, and that a landlord’s compliance with the law on rent and termination of a tenancy should be part of that assessment, the points that are made in amendment 503 are already covered by section 85(2)(c) of the 2004 act. As such actions would be contraventions of landlord and tenant law, they would already be relevant considerations in the fit and proper person test. By picking out those particular contraventions, we weaken the generality of the existing provision, without adding any particular protections. Therefore, I cannot support the amendment.

Amendment 420, in the name of Mark Griffin, would introduce a requirement to publish statistics on average rent, supported by the information that would be available as a consequence of amendment 418, which I cannot support for the reasons that I have already set out. I would just reflect that the Government’s amendment 328, which has already been agreed to, would enable the processing of information obtained from landlords in connection with rent control for the purposes of publishing aggregate statistics on rent levels. I hope that that reassures the member.

Lastly, I turn to amendment 421, also in the name of Mark Griffin. Of course, it is important that tenants are aware of their rights and are empowered to use them—I share Mr Griffin’s views in that respect. However, as local authorities have existing legal duties to provide advice and assistance to both landlords and tenants on landlord registration and other aspects of landlord and tenant law, I am not clear on the need for a specific statutory requirement to promote the register and, as a result, I cannot support the amendment.

Again, I reassure members that ministers are committed to continuing to raise awareness of tenancy rights and responsibilities, and to see what more can be done about that after the bill is, as I hope, passed by the Parliament. We will seek to work with tenants, landlords and stakeholders to do that in the most effective way.

I am content that that is clear and that we are covered. If Ms Chapman can persuade me, before stage 3, that her points are not covered by the 2004 act, I will be happy to look at bringing the amendment back.

I have looked very carefully—again, only yesterday—at what is proposed in the UK Renters’ Rights Bill. There are areas where aspects in Scotland provide better support for tenants, and there are, of course, different aspects of the overall application of a tenancy that mean that we cannot just replicate what is happening in a UK bill.

I am happy to carry on conversations about that between stages 2 and 3, should there be a situation in which tenants’ rights are lesser in Scotland than they are in other parts of the UK. That is not how I look at the legislation, but I am more than happy to be challenged if we feel that our rights are falling short of rights elsewhere. I am also content that there are other areas where the rights of a tenant are still better served in Scotland. In addition, sometimes, the rights of the landlord are better served by the current circumstances. However, if there are aspects in which we are falling short, I am quite happy to go through them in detail in the run-up to stage 3.

Amendments 188 and 200, also in the name of Maggie Chapman, would introduce a winter eviction enforcement ban, except in limited circumstances, which is similar to the temporary emergency measures under the Cost of Living (Tenant Protection) (Scotland) Act 2022. The time-limited nature of the 2022 act was a key factor in achieving the lawful balance between the protection of tenants and the rights of landlords. However, Maggie Chapman’s amendments would be permanent and would apply every year. That is in addition to the enhanced eviction protections that are already in the bill.

I, too, want to ensure that we protect tenants and prevent, as far as possible, the negative impacts of eviction, but we must do so in a proportionate manner. In developing the bill, we explored greater restrictions on evictions over winter and consulted on that as part of our new deal for tenants. That highlighted support for additional protections, but reflected that the Scottish climate can be challenging at any time of year and that other times also present financial and emotional wellbeing pressures for people, such as periods of religious significance and exam periods.

I am also concerned about the creation of an eviction season after the end of the winter period and the negative impact of the additional pressure that that could put on housing and homelessness services, along with the issue of tenants finding alternative accommodation.

The measures in the bill will ensure that a more person-centred approach is taken, as the tribunal or court will need to consider whether the enforcement of an eviction should be delayed at any time of year, although seasonal impact is set out as a specific factor that should be considered.

I understand that the intention behind Emma Roddick’s amendment 250 is to increase the supply of affordable housing, which we are all committed to doing. However, the amendment does not appropriately take account of landlords’ rights. It would be overly restrictive to prevent landlords from selling a property on the open market, even if they had good reason for doing so. Amendment 250 could have unintended negative consequences should landlords decide to exit the market due to the increased risk of being unable to dispose of their property on the open market, so I cannot support it.

However, I reassure Emma Roddick that, in addition to being able to sell empty homes, private landlords can already approach social landlords with a view to selling their property with tenants in situ. Our affordable housing supply programme supports such purchases when they meet a clear strategic purpose and the tenants are at risk of homelessness. A recent example was the purchase in March this year of 20 homes, most of which were tenanted, in a pressured area of Perth and Kinross. We will continue to promote that existing flexibility through our close working relationships with councils, and we are in the process of strengthening our guidance to encourage that still further.

I ask Emma Roddick not to move amendment 250, but I will keep her informed of, and would welcome her thoughts on, the strengthening of the guidance that we will undertake.

Amendment 251, in the name of Maggie Chapman, sets out a proposal that responds to concerns about the costs of moving when a tenancy ends through no fault of the tenant and the misuse of repossession grounds. I am sympathetic to the issues that have been raised, but further detailed consideration of the need for, and the impact of, the amendment is required. That would best be done through the review of repossession grounds that we are committed to.

Amendments 362 to 368 and 395, in Paul McLennan’s name, will ensure that tenants who pay no rent or a low rent are appropriately compensated under the new unlawful eviction damages process. The current unlawful evictions legislation applies to all residential occupiers. That means that the provisions apply to all forms of tenancy and to forms of tenure other than a lease, such as a service occupancy or licence. It is therefore possible that a person who occupies a property will not necessarily pay rent or will pay a low rent. Changes in the bill that base damages on a calculation that involves multiplying the monthly rent could disadvantage people in those circumstances, which is not our intent.

Our amendments address that issue by prescribing that the figure of £840 should be used for the calculation in circumstances in which no rent or a low rent is paid. That figure is based on the average rent for a two-bed privately rented property, which is the most common size in the private rented sector. The amendments also provide powers for ministers to amend that amount through regulations.

Amendments 369 and 404, in Paul McLennan’s name, seek to change the compensation that can be awarded when a wrongful termination occurs to an amount between three and 36 times the monthly rent. That mirrors the way in which damages for an unlawful eviction are calculated. By prescribing £840 as the figure that should be used for the calculation for tenants who pay a low rent, amendment 369 will ensure that such tenants will be appropriately compensated. Powers are also provided for the Scottish ministers to amend the amount through regulations.

Amendment 268, in the name of Mark Griffin, would introduce a requirement for the Scottish ministers to carry out a review of eviction grounds under the 2016 act within 12 months of the bill receiving royal assent. As I have said, I remain committed to such a review being carried out for the private rented sector, and I understand Mr Griffin’s desire for it to be carried out in a timely manner.

However, if a detailed and robust review of repossession grounds is to be delivered, that work must be supported by stakeholder engagement. The imposition of a 12-month timeframe risks limiting the scope of the review, and I am sure that Mark Griffin would agree that none of us would want that to happen.

As I said when I wrote to the committee following its meeting on 6 May, I am committed to engaging with committee members on a range of issues. As part of that process, I will write to committee members with more information regarding our plans following the conclusion of stage 2. I therefore ask Mark Griffin not to move amendment 268.

Amendment 269, also in the name of Mark Griffin, introduces a similar requirement for a review of all the other grounds for eviction within the same timescale. There is no existing commitment to review the grounds for eviction more broadly and no evidence of a need for a review of that for the social rented sector or, indeed, evidence of calls from stakeholders to do so. Also, as no new tenancies can be created in relation to older protected or assured tenancies, that broader review would have little benefit. I therefore ask Mark Griffin not to move the amendment.

Amendment 141, in the name of Emma Roddick, seeks to address an important issue, the misuse of repossession grounds, which was also highlighted by the committee’s stage 1 report. No landlord should wilfully mislead a tenant or the tribunal into ending a tenancy. There are existing penalties for doing so through the Scottish Tribunals (Offences in Relation to Proceedings) Regulations 2016, which could result in imprisonment for up to two years, a fine or both. I recognise the need for further action in that area; however, I am not convinced that amendment 141 will deliver the outcome that is being sought. It is through the wider review of repossession grounds that the issue is best considered.

I reassure members that we are taking immediate action to increase penalties for wrongful termination through amendments 369 and 404. They would see compensation for a wrongful termination increasing from the current maximum of six months’ rent to 36 months’ rent. I therefore ask Emma Roddick not to move the amendment.

The aspects of data collection that we are looking at in relation to the bill are to ensure that we can implement rent controls. I appreciate that there are other pieces of data that members might wish to see collected for overall information purposes relating to the private rented sector. In one of the many round-table meetings that we will have over the summer, we will have to look at why we would be collecting the data, its purpose and what it would be used for. Those are the questions that we will need to get into if we are looking at evictions and the question of whether a property has been sold. We will need to consider how often that ground is used and how we can monitor the sale of properties.

Those details will have to be teased out. I do not know whether that can be done through data collection provisions in the bill, because those would specifically relate to rent control implementation. It is a challenge that we will have to come back to.