Rented sector reform: Housing (Scotland) Bill: business and regulatory impact assessment

Footnotes

1 A New Deal for Tenants - draft strategy: consultation

2 Housing to 2040.

3 Policy Memorandum

4 To assess the size of the private rented sector, there are two key sources of data: the Scottish Household Survey and the Scottish Landlord Register. Both have limitations to consider (as outlined in the text below), but it is useful to consider both sources to provide corroboration of trends.

5 Scottish Household Survey: publications. There is evidence to suggest that social rented and private rented households may be slightly under-represented in the 2022 achieved sample – see Scottish Household Survey 2022: Key Findings.

6 Data from January 2022 is available at Housing statistics: Scottish Landlord Register data. There are some limitations in the SLR data, such as the fact that registrations last for a period of three years and there could be a time lag in landlords de-registering properties no longer available for rent. The data for 2018 and 2019 was affected by changes in the underlying IT system and is not used in this summary.

7 Housing Statistics 2022 & 2023: Key Trends Summary.

8 Statistical information | Scottish Housing Regulator.

9 Scottish Household Survey 2022: Key Findings, Table 1.15 in Housing Tables.

10 Housing costs include the following where applicable: rent (gross of housing benefit); water rates; mortgage interest payments; structural insurance premiums; ground rent and service charges.

11 Additional Scottish Government analysis of the Family Resources Survey.

12 Income is net of income tax payments, National Insurance contributions, contributions to occupational, stakeholder and personal pension schemes, council tax, maintenance and child support payments made, and parental contributions to students living away from home. The measure of income used is “unequivalised” income, i.e. it is not adjusted for the size and composition of the household as is done for official poverty statistics.

13 See footnote 12.

14 Income and poverty estimates derived from the Family Resources Survey are usually based on three-years averages to obtain sufficient sample size. However, due to the impact of Covid 19 it was not possible to obtain a representative sample for Scotland in 2020/21. Therefore to provide the most recent estimate, data for a two-year period from 2021/22 to 2022/23 is used, although the smaller sample size means there are more income quintiles for which the sample size is too small to provide robust estimates.

15 See source notes to Figure 5 for an explanation of the time periods used in this data.

16 The definition of financial vulnerability used for these estimates is that a household has savings which would cover less than one month of income at the poverty line.

17 Wealth in Scotland 2006-2020.

18 Scottish Government (2022) Scottish Social Housing Charter; see Charter outcomes and standards 14/15: Rents and Service Charges.

19 There are a very small number of fair rent regulated tenancies under the Rent (Scotland) Act 1984, which are subject to determination by the Rent Service Scotland.

20 Cost of Living (Tenant Protection) (Scotland) Act 2022.

21 The Rent Adjudication (Temporary Modifications) (Scotland) Regulations 2024

22 Private Sector Rent Statistics, Scotland, 2010 to 2023

23 Charter indicators and data by outcomes and standards. Apartment size is based on the number of bedrooms and dining/living rooms, so a two-bedroom social rented property with one dining/living room is categorised as a three-apartment property.

24 Simcock, T., McKee, K., Harris, J.; James, G. and Soaita, A.M. (2022) What do lower income tenants in Scotland’s private rented sector want to see from a new rented sector?, CaCHE.

25 Scottish Government (2021) Housing to 2040, page 8

26 Scottish Government (2021) A New Deal for Tenants - draft strategy: consultation

27 Housing (Scotland) Bill.

28 Policy Memorandum.

29 A New Deal for Tenants - draft strategy: consultation

30 A New Deal for Tenants: consultation analysis

31 Rent Control and Private Rented Sector Reform Measures Stakeholder Group

32 Rented sector reform: landlord and tenant engagement questionnaire - analysis report

33 Rented sector reform: landlord and tenant engagement questionnaire - analysis of email responses

34 In limited cases, increases of up to 3% (subsequently 6%) were permitted on the alternative ground of increases in certain prescribed property costs.

35 The formula provides that where the gap between the market and current rent is more than 6%, the rent can be increased by 6% plus a third of a percentage point for each percentage point that the gap exceeds 6%. When the gap between market and current rent is 24% or higher, the increase is capped at 12%. Additionally, a Rent Officer cannot increase the rent above that requested by the landlord. An Illustrative rent increase calculator helps landlords and tenants calculate the permitted increase.

36 This is an issue that has been raised by stakeholders in the context of the 2022 Act emergency rent controls.

37 Whitehead, C. & Williams P. (2019) From ideas to reality: longer term tenancies and rent

stabilisation – principles and practical considerations, Residential Landlords Association; see P20.

38 Evidence relating to impact of insecurity of tenure, to which unaffordable rent increases can contribute, is set out in the Background, Objective and Rationale section relating to frequency of rent increases in non-RCAs, as well as in the Background, Objective and Rationale section relating to duties to consider delaying an eviction.

39 Some savings in implementation costs for rent control may be realised through joint delivery with other rented sector reform measures. However, this will depend on the timescales for implementation, which may differ across the measures. As such, the implementation of rent control measures has been costed separately for the purpose of this BRIA.

40 Further information on how these three scenarios have been developed can be found in the section on costs to Local authorities.

41 Prior to this, landlords could not increase rents under the 2022 Act unless applying on the grounds of an increase in prescribed property costs.

42 The cap for prescribed property costs was raised from 3% to 6% from 1 April 2023. Data for the period of the 6% cap is used, rather than the earlier 3% cap, because landlords might be more likely to apply under a higher cap, and because in the earlier stages of the operation of the emergency legislation landlords might have been less aware of the prescribed property ground or might have been anticipating that the emergency legislation would not be extended beyond the initial period. This is supported by the number of applications received during the period that the 3% cap on prescribed property costs was in force, which was equivalent to only 111 at an annual rate.

43 Further information on how these three scenarios have been developed can be found in the section on costs to Local authorities.

44 RTBI Annual Report 2022 (Figure 1, p91)

45 These arose from a number of causes, including recovery of rent arrears from tenants.

46 The Tribunal received 981 applications under Rule 111 in 2022-23, arising from a number of causes, including recovery of rent arrears from tenants

47 Similarly low levels were experienced in previous year, with 14 applications to the Tribunal in relation to unlawful evictions in 2020/21, five in 2021-22 , and nine in 2022-23.

48 This is the sum of the relevant scenario in Table 10, Table 11, Table 12, Table 13 and Table 14. With respect to Table 10, the figure used for the low scenario in Table 15 is based on the low application rate and 5% of tenancies in an RCA, the figure for medium scenario is based on the medium application rate and 10% of tenancies in an RCA, and the figure for the high scenario is based on the high application rate and 15% of tenancies in an RCA.

49 If rent controls are implemented within a local authority’s area, there may be additional costs to the local authority in raising awareness of rent controls and their effect on landlords and tenants within the relevant area. However, this is not considered to represent significant costs as it is anticipated that the Scottish Government will lead awareness raising as part of the designation process and the costs of this has been captured above.

50 Such as a major employer entering or leaving the area, which may have an impact on demand for PRS properties and corresponding rental prices.

51 For the low scenario, given the assumptions about the number of private rented properties in a small, intermediate and large hotspot, the total number of properties amounts to 16,000. Given the most recent estimates of the size of the PRS (320,000 from the SHS 2022 and 346,816 from the SLR in March 2024), this equates to around 5% of properties being in an RCA, which is the same as the low scenario used elsewhere in the BRIA. The medium and high scenarios are similarly twice and four times as high as the low scenario.

52 The estimated fee for a letting agent of doing one hour’s work is used to cost the familiarisation time, because either a landlord can use a letting agent to do the work, or, if they do it themselves, it implies they value the hour spent doing this at no more than the cost of the letting agent fee. The estimated fee for a letting agent is derived as follows. Data from Table 16.5a of the 2023 Annual Survey of Hours and Earnings shows that the median gross hourly pay for SIC (2007) code 68.31 “Real estate agencies”, which includes agencies involved in the renting of property, was £14.82 in April 2023. This pay is uprated by 7.5% (the change in the average weekly earnings in the real estate sector in the 3 months to December 2023 on the corresponding 3-month period in 2022) to get an estimate for real estate agency hourly pay in 2024 of £15.93, This is multiplied by 1.4 to cover non-salary costs (e.g. employer NIC and pension contributions, contribution to overheads, etc) and then by a further 10% as a profit margin (since this cost is used as a proxy charge for using a letting agent) and then rounded to £25.

53 A substantial majority of private landlords, private landlord organisations, social landlords and social landlord organisations thought that there should be a mechanism to raise rent above the cap on a case-by-case basis such as if improvements were made to the property: support for a mechanism within these groups ranged from 86% to 98%. A majority of private and social tenants answering (95% and 98% respectively) answered that there should be no such mechanism. https://consult.gov.scot/better-homes-division/rented-sector-reform-landlord-and-tenant/

54 See footnote 52

55 See section on Background, Objective and Rationale of Rent Controls above, as well as Annex B..

56 See section on Background, Objective and Rationale for rent control above, as well as Annex B.

57 Garnham, L., Rolfe, S., Anderson, I., Seaman, P., Godwin, J. & Donaldson, C. (2021) Intervening in the cycle of poverty, poor housing and poor health: the role of housing providers in enhancing tenants’ mental wellbeing, Journal of Housing and the Built Environment, Vol. 37, P1-21.

58 McKee, K., Soaita, A.M. & Hoolachan, J. (2020) ‘Generation rent’ and the emotions of private

renting: self-worth, status and insecurity amongst low-income renters.

59 Soaita, A.M., Simcock, T., & McKee, K. (2022) Housing challenges faced by low-income and other vulnerable privately renting households: An evidence review, CaCHE.

60 For example, the chart in Section 3.3 of RentBetter (2020) Wave 1 Landlord and letting agent survey findings shows that no landlords report raising rents more than once a year, although it is possible that landlords who report following another strategy (e.g. only on change of tenancy, or never), may occasionally raise rent in the first 12 months. It should also be noted that this survey took place before the cost-of-living crisis, which may have affected rent-setting strategy.

61 RentBetter (2022) Research on the impact of changes to the private rented sector tenancy regime in Scotland.

62 P160 of A New Deal for Tenants: Analysis of responses to the consultation exercise: Analysis report.

63 See section 2.5 of A New Deal for Tenants: Draft Strategy Consultation Paper.

64 See p160 of A New Deal for Tenants: Analysis of responses to the consultation exercise: Analysis report.

65 McKee, K., Soaita, A.M. & Hoolachan, J. (2020) ‘Generation rent’ and the emotions of private renting: self-worth, status and insecurity amongst low-income renters, Housing Studies, 35:8, 1468-1487; Harris, J. & McKee, K. (2021) Health and wellbeing in the private rented sector part 1 | literature review, CaCHE; Harris, J. & McKee, K. (2021) Health and wellbeing in UK the private rented sector | Enhancing capabilities Part 2 | Findings from tenant interviews, CaCHE.

66 Hulse, K. and Milligan, V. (2014) ‘Secure Occupancy: A New Framework for Analysing Security in Rental Housing’, Housing Studies, 29 (5).

67 Clair, A. & Hughes, A. (2019) Housing and health: new evidence using biomarker data, Journal of Epidemiology & Community Health.

68 Clarke, A.; Hamilton, C., Jones, M. & Muir, K. (2017) Poverty, evictions and forced moves, Joseph Rowntree Foundation.

69 RentBetter (2020) Wave 1 Basline Report.

70 See section on Implementation costs for the Tribunal for setting up new application routes.

71 In 2022/23 only 37 cases were heard by the Upper Tribunal across all tribunal jurisdictions, not just the Housing and Property Chamber. See Scottish-Tribunals-Annual-Report-2022-2023.

72 The annual caseload estimate was provided by the SCTS to the Scottish Government and is based on 2018-19 data. The SCTS chose 2018-19 due to fluctuations in caseload in subsequent years as a result of the impact of Covid-19 as well as the 2022 Act.

73 Data for 2018-19 is used for consistency with eviction caseload estimates (see footnote 72), and is taken from the Scottish Housing Regulator’s Charter Data All Social Landlords Complete Dataset 2013-14 to 2018-19 (comprising the sum of 24.2.1 Properties recovered because rent had not been paid, 24.2.2 Properties recovered because of anti-social behaviour, and 24.2.3 Properties recovered for other reasons). Note that the number of eviction applications to the court which ultimately result in an eviction or abandonment is a relatively small share of all eviction applications to the court, which accounts for the difference between the court caseload figure of 12,400 and the figures presented here.

74 The review only looked at decisions in 2022-23 that pre-dated the emergency measures under the 2022 Act.

75 Charter indicators and data by outcomes and standards. Latest data is for 2022-23.

76 There were an estimated 2,286 evictions in 2023-24 (part year figures grossed up to a full year) relative to the overall size of the PRS of 320,000 (from 2022 SHS) or 346,816 properties on the SLR in March 2024.

77 See footnote 52

78 Data for year to end September 2023, from Private Sector Rent Statistics, Scotland, 2010 to 2023. Two-bedroom properties are the most common property size in the PRS.

79 Information provided by Legal Services Agency in 2022 found that two valuation reports commissioned by them for this purpose cost £840 and £960.

80 Legal Services Agency (2020) Briefing on reform of the law on damages for unlawful eviction.

81 For example, only four applications relating to illegal eviction were made to the Tribunal in 2021-22.

82 Harris, J. & Marsh, A. (2022) Understanding landlord behaviour in the Private Rented Sector in the UK, CaCHE.

83 RentBetter (2022) Wave 2 Landlord and Letting Agent qualitative research report.

84 Harris, J. Marsh, A. & Cowan, D. (2020) Improving compliance and enforcement in the private rented sector, CaCHE.

85 Harris, J. & Marsh, A. (2022) Understanding landlord behaviour in the Private Rented Sector in the UK, CaCHE.

86Data for year to end September, Private Sector Rent Statistics, Scotland, 2010 to 2023.

87 Private residential tenancy: model agreement.

88 Private residential tenancy model agreement: easy read notes

89 Responsible landlords may at least partially “internalise” the benefits of a pet to their tenant by taking into account that a tenant who is able to keep their pet might be happier and thus more likely to sustain their tenancy, meaning that the landlord can avoid the costs (such as void and redecoration costs) arising from tenancy turnover. They may also be able to charge a higher rent if they permit pets.

90 See for example McCarthy, L. & Simcock, T (2024) Pets and private renting: a rapid evidence review of the barriers, benefits, and challenges and Bulsara, M., Wood, L., Giles-Corti, B. & Bosch, D. (2007) More Than a Furry Companion: The Ripple Effect of Companion Animals on Neighborhood Interactions and Sense of Community, Society & Animals Vol 15 (1).

91 Simcock, T., McCarthy, L., Kara, A. & Brown, P. (2024) “The Financial Impact of Pet Ownership in Rental Properties”.

92 See reference in footnote 91.

93 Simcock, T., McCarthy, L., Kara,A. & Brown,P. (2024) The Financial Impact of Pet Ownership in Rental Properties.

94 See P83 in A New Deal for Tenants: consultation analysis.

95 Morley, C. & Fook, J. (2005) The importance of pet loss and some implications for services, Mortality: Vol 10, No 2.

96 See Hawkins, R.D., Williams, J.M. & Scottish SPCA (2017) Childhood Attachment to Pets: Associations between Pet Attachment, Attitudes to Animals, Compassion, and Humane Behaviour; Hoagwood, E.H, Acri, M., Morrissey, M., Peth-Pierce, R. (2017) Animal-assisted therapies for youth with or at risk for mental health problems: A systematic review, Applied Developmental Science: Vol 21 , No 1; Bryant, B.K. (1990) The Richness of the Child-Pet Relationship: A Consideration of Both Benefits and Costs of Pets to Children, Anthrozoös: Vol 3, No 4.; Marsa-Sambola, F. Williams, J. Muldoon, J., Lawrence. A. Connor, M. & Currie, C. (2017) Quality of life and adolescents’ communication with their significant others (mother, father, and best friend): the mediating effect of attachment to pets, Attachment & Human Development: Vol 19 , No 3.

97 Simcock, T., McCarthy, L., Kara, A. & Brown, P. (2024) “The Financial Impact of Pet Ownership in Rental Properties”.

98 Financial Memorandum.

99 Caseload number for all rules except Rule 111 are based on application statistics. Rule 111 caseload is based on published Tribunal decisions data as it is not possible to disaggregate the application statistics by case type to exclude Repayment Orders on the grounds of rent arrears.

100 Figures for the full year were not available at the time of drafting; therefore part-year figures were annualised.

101 See footnote 52

102 See footnote 97.

103 2 Bedroom Properties - Private Sector Rent Statistics, Scotland, 2010 to 2023.

104 Harris, J. & McKee, K. (2021) Health and wellbeing in UK the private rented sector | Enhancing capabilities Part 2 | Findings from tenant interviews, CaCHE.

105 Soaita, A.M., Simcock, T., & McKee, K.; CaCHE (2022) Housing challenges faced by low-income and other vulnerable privately renting households: An evidence review.

106 RentBetter (2022) Wave 2 - Final-Report.

107 Simcock, T. (2022) Living in Scotland’s private rented sector: a bespoke survey of renter’s experiences, CaCHE.

108 The full breakdown is as follows: 45% of respondents strongly agreed that their landlord would be open to them personalising the let property, 35% tended to agree and 13% tended to disagree and 7% strongly disagreed.

109 Garnham, L., Rolfe, S., Anderson, I., Seaman, P., Godwin, J. & Donaldson, C. (2021) Intervening in the cycle of poverty, poor housing and poor health: the role of housing providers in enhancing tenants’ mental wellbeing, Journal of Housing and the Built Environment, Vol. 37, P1-21.

110 Soaita, A.M., Simcock, T., & McKee, K. (2022) Housing challenges faced by low-income and other vulnerable privately renting households: An evidence review, CaCHE.

111 Simcock, T., McKee, K., Harris, J.; James, G. and Soaita, A.M. (2022) What do lower income tenants in Scotland’s private rented sector want to see from a new rented sector?, CaCHE.

112 p90 of A New Deal for Tenants: consultation analysis.

113 Rolfe, S. McKee, K. Feather, J., Simcock, T. & Hoolachan, J. (2022) The role of private landlords in making a rented house a home; International Journal of Housing Policy, DOI: 10.1080/19491247.2021.2019882; Hiscock, R. Kearns, A. MacIntyre, S. & Ellaway, A. (2001) Ontological Security and Psycho-Social Benefits from the Home: Qualitative Evidence on Issues of Tenure, Housing, Theory and Society: Vol 18, No 1-2.

114 Financial Memorandum.

115 2021/22 Statistical Report - Annual Reports | Housing and Property Chamber

116 See footnote 52

117 2 Bedroom Properties - Private Sector Rent Statistics, Scotland, 2010 to 2023 - gov.scot (www.gov.scot)

118 Such concerns were also noted in the RentBetter (2022) Wave 2 Landlord and Letting Agent qualitative research report; examples given included painting over radiator valves or smoke detectors. Landlords also expressed concerns about not wanting their property to be changed because it contained valuable period features, or because it was only being rented out for a short time before reverting to a family home or the owners.

119 RentBetter (2022) Wave 2 – Final Report.

120 Garnham, L., Rolfe, S., Anderson, I., Seaman, P., Godwin, J. & Donaldson, C. (2021) Intervening in the cycle of poverty, poor housing and poor health: the role of housing providers in enhancing tenants’ mental wellbeing, Journal of Housing and the Built Environment, Vol. 37, P1-21.; Soaita, A.M., Simcock, T., & McKee, K. (2022) Housing challenges faced by low-income and other vulnerable privately renting households: An evidence review, CaCHE.

121 See section on Tenancy Deposit Schemes in discussion on measures relating to keeping a pet.

122 Review of Tenancy Deposit Schemes in Scotland.

123 Edgar, B. Williams, N. McMahon. L. & McAvoy, S. (2017) Sustaining Tenancies Following Domestic Abuse, Women’s Aid.

124 See paragraph 19 of the Private Housing (Tenancies) (Scotland) Act 2016 - Policy Memorandum.

125 Characteristics of the homeless population - Homelessness in Scotland: 2022-23.

126 Sharp, N. (2008). What’s yours is mine. The different forms of economic abuse and its impact on women and children experiencing domestic violence, Refuge.

127 Scottish Government Working Group Report (2020) Improving Housing Outcomes for Women and Children Experiencing Domestic Abuse.

128 Pre-action requirements are a number of steps social landlords are required to take to ensure they have exhausted all attempts to resolve rent arrears with a tenant before taking action to evict – see Section 14A of the 2021 Act. Social landlords must satisfy the court that all the pre-action requirements have been complied with before court action for eviction can begin. Pre-action requirements do not currently require specific consideration of the effect of domestic abuse on the accrual of rent arrears.

129 RentBetter (2022) Wave 2 Landlord and Letting Agent qualitative research report.

130 Harris, J & Marsh, A. (2022) Understanding landlord behaviour in the Private Rented Sector in the UK, CaCHE.

131 Table 8.5 (on P67), which shows that the other top 6 themes were: no impact (81), will comply (52), don’t know or undecided (23), pass on costs to tenants (17) and stricter tenant selection criteria (4).

132 See Landlord divestment response section in Annex A. BRIA engagement – Summary of responses.

133 Harrington, N, Gibb, K, Smith, R & Marsh, A. (2023) The impact of regulatory reform on the private rented sector, CaCHE.

134 Martin, C et al, (2022) Regulation of residential tenancies and impacts on investment, AHURI.

135 Harris, J. & Marsh, A. (2022) Understanding landlord behaviour in the Private Rented Sector in the UK, CaCHE.

136 See section on Other potential areas of cost impact in discussion of rent control.

137 Gibb, K., Soaita, A.M.& Marsh, A. (2022) “Rent control: A review of the evidence base, CaCHE; see P25.

138 Whitehead, C. & Williams P. (2019) From ideas to reality: longer term tenancies and rent

stabilisation – principles and practical considerations, Residential Landlords Association; see P20.

139 Free entry is not possible in the Scottish social rented sector – social landlords (which must be not-for-profit bodies) must register with the Scottish Housing Regulator and comply with the social sector regulatory framework. Thus considerations relating to intra-UK trade are not relevant to this sector.

140 As set out in the Scottish Firms Impact Test section, in relation to the social sector provisions, a social sector landlord is required to be registered with the Scottish Housing Regulator and thus the provisions relating to the social sector do not apply to landlords based in the rest of the world.

141 Rented sector reform: landlord and tenant engagement questionnaire - analysis report and Rented sector reform: landlord and tenant engagement questionnaire - analysis of email responses.

142 Similarly, even in the absence of rent controls, a larger portfolio distributed across a wider geography reduces a landlord’s exposure to falls in market rents in local areas.

143 See the sections on Rent Control, Potential cumulative impacts of and Competition Assessment.

144 Section 48, Housing (Scotland) Act 2014.

145 Under Section 48, Housing (Scotland) Act 2014 and Section 85, Antisocial Behaviour etc. (Scotland) Act 2004 respectively.

146 Housing (Scotland) Bill Financial Memorandum.

147 Kholodilin, K. (2020) Long-Term, Multicountry Perspective on Rental Market Regulations, Housing Policy Debate, Vol.30, Issue 6.

148 Gibb, K. & Marsh, A. (2022) Rent control: principles, practicalities and international experience, CaCHE.

149 Sisson, A., & Bowyer-Pont, P. (2023). Regulating rents: international examples & experience. Sydney, Shelter NSW & Tenants Union of NSW.

150 Gibb, K. & Marsh, A. (2022) Rent control: principles, practicalities and international experience, CaCHE.

151 Whitehead, C. & Williams, P. (2018) Assessing the evidence on Rent Control from an

International Perspective, LSE/ Residential Landlords Association.

152 Whitehead, C. & Williams, P. (2018) Assessing the evidence on Rent Control from an

International Perspective, LSE/ Residential Landlords Association; Gibb, K., Soaita, A.M.& Marsh, A. (2022) “Rent control: A review of the evidence base, CaCHE; see P25.

153 Gibb, K. & Marsh, A. (2022) Rent control: principles, practicalities and international experience, CaCHE.

154 Gibb, K., Soaita, A.M.& Marsh, A. (2022) “Rent control: A review of the evidence base, CaCHE.

155 Gibb, K., Soaita, A.M.& Marsh, A. (2022) “Rent control: A review of the evidence base, CaCHE.

156 Whitehead, C. & Williams, P. (2018) Assessing the evidence on Rent Control from an

International Perspective, LSE/Residential Landlords Association; Gibb, K., Soaita, A.M.& Marsh, A. (2022) “Rent control: A review of the evidence base, CaCHE; Jenkins, B. (2009) Rent Control: Do Economists Agree?, Econ Journal Watch, Vol. 6, Iss. 1, Arnott, R. (1995) Time for Revisionism on Rent Control?, Journal of Economic Perspectives, Vol. 9, No.1.

157 Scanlon, K, & Whitehead. C. (2014) Rent stabilisation: Principles and international experience, Report for London Borough of Camden.

158 LSE-International-Evidence-on-Rent-Control-Report-2018-Final.pdf

159 Coffey, C., Hogan, P.J., McQuinn, K. o'Toole, C. & Slaymaker, R. (2022) Rental inflation and stabilisation policies: international evidence and the Irish experience, ESRI Research Series No.136.

160 Gibb, K. & Marsh, A. (2022) Rent control: principles, practicalities and international experience, CaCHE.

161 Rented sector reform: landlord and tenant engagement questionnaire - analysis report.

162 Gibb, K. & Marsh, A. (2022) Rent control: principles, practicalities and international experience, CaCHE.

163 Soaita, A.M., Gibb, K. & MacLennan, D. (2019) Housing wealth inequalities in Scotland: an evidence review, CaCHE; Shelter (2016) Research Report: Survey of Private Landlords.

164 Soaita, A.M., Gibb, K. & MacLennan, D. (2019) Housing wealth inequalities in Scotland: an evidence review, CaCHE.

165 RentBetter (2022) Wave 2 Landlord and Letting Agent qualitative research report; Harris, J. & Marsh, A. (2022) Understanding landlord behaviour in the Private Rented Sector in the UK, CaCHE.

166 Rented sector reform: landlord and tenant engagement questionnaire - analysis report.

167 Gibb, K. & Marsh, A. (2022) Rent control: principles, practicalities and international experience, CaCHE.

168 Coffey, C., Hogan, P.J., McQuinn, K. o'Toole, C. & Slaymaker, R. (2022) Rental inflation and stabilisation policies: international evidence and the Irish experience, ESRI Research Series No.136.

169 Gibb, K., Soaita, A.M.& Marsh, A. (2022) “Rent control: A review of the evidence base, CaCHE.

170 Whitehead, C. & Williams, P. (2018) Assessing the evidence on Rent Control from an

International Perspective, LSE/Residential Landlords Association.

171 Whitehead, C. & Williams P. (2019) From ideas to reality: longer term tenancies and rent

stabilisation – principles and practical considerations, Residential Landlords Association.

172 Whitehead, C. & Williams, P. (2018) Assessing the evidence on Rent Control from an

International Perspective, LSE/Residential Landlords Association.

173 Gibb, K., Soaita, A.M.& Marsh, A. (2022) “Rent control: A review of the evidence base, CaCHE

174 See for example, The Guardian (14 September 2023) Loophole in Scotland’s rent controls sees new tenants facing largest rises in UK.

175 In their response to a call for evidence relating to the operation of the 2022 Act, a landlord organisation suggested that “landlords behaviours are changing with many now raising rents significantly between tenancies, when they may not otherwise have done so.” See paragraph 5.12 of Scottish Government (2023), Cost of Living (Tenant Protection) (Scotland) Act 2022: first report to the Scottish Parliament.

176 For example, the rent data which feeds into the ONS Price Index of Private Rents (PIPR) rental data in England and Wales is collected for both new and existing tenancies; in Scotland it is predominantly for advertised new lets, with only a small proportion based on existing lets data; and in Northern Ireland, it is for newly-advertised lets. As a result, the ONS states that “[c]aution is advised when comparing Scotland's estimates with other areas in England and Wales and within Scotland. This is because of differences in data collection and housing policy (in-tenancy rent price increases are currently capped in Scotland) across the UK.”

177 It should be noted that this data may be affected by the degree of market coverage that Zoopla has in different parts of the UK.

178 The rent cap under the 2022 Act applied to rent increase notices served as from 6 September 2022. Given the minimum notice period of 3 months, this applies to rent increases which took effect as from 6 November 2022, and therefore data for October 2022 serves as a baseline prior to the impact of the legislation.

179 There were certain limited circumstances where a higher increase was permitted, first up to 3% and subsequently up to 6%.

180 See Table 1.26 in Scottish Household Survey (2022) Annual Report – Housing Tables.

181 See footnote 174.

182 Sisson, A., & Bowyer-Pont, P. (2023). Regulating rents: international examples & experience. Sydney, Shelter NSW & Tenants Union of NSW.

183 Gibb, K. & Marsh, A. (2022) Rent control: principles, practicalities and international experience, CaCHE.

184 Whitehead, C. & Williams P. (2019) From ideas to reality: longer term tenancies and rent stabilisation – principles and practical considerations, Residential Landlords Association; see P20.

185 It is possible that due to behavioural responses, the market rent for a given year which follows a period of rent capping would be different to the market rent for that year if the rent had never been capped.