Capping of rent increases on referral or appeal: equality impact assessment results

Equality Impact Assessment Results

Title of Policy:

Part 1, Chapter 3, section 22 & 23 - Housing (Scotland) Bill (“the Bill”) - Capping of rent increases on referral or appeal

Summary of aims and desired outcomes of Policy:

Measures in the Bill are designed to provide greater protections for private rented sector (“PRS”) tenants against high rent increases by ensuring that where a tenant refers a proposed rent increase, under the Private Housing (Tenancies) (Scotland) Act 2016^[1] (“2016 Act”) for a Private Residential Tenancy (“PRT”) or under the Housing (Scotland) Act 1988^[2] (“1988 Act”) for an Assured Tenancy, for adjudication that the Rent Officer or Tribunal cannot set a rent higher than that proposed by the landlord in the rent increase notice.

Currently, adjudication of rent is based on a determination of the open market rent. This may have the effect of agreeing the proposed increase, decreasing the proposed increase, or increasing the rent above the increase requested by the landlord (for example, to bring it in line with the open market rent if the increase proposed by the landlord was below this). The measures aim to remove the risk that the rent could be set higher than the rent increase proposed by the landlord addressing concerns that the current process may act as a disincentive to tenants from making use of their right to refer a rent increase for independent adjudication.

Directorate:

Directorate for Local Government and Housing: Better Homes Division: Housing Legislation and Reform Unit.