Landlord coalition file petition for review of rent freeze and eviction ban

A group of landlords associations is seeking a judicial review at Scotland’s highest court over the decision to freeze rents and ban evictions.

The Scottish Association of Landlords (SAL), Scottish Land and Estates (SLE) and Propertymark filed a petition at the Court of Session on Friday, seeking judicial review of the emergency legislation passed last year aimed at tackling the cost of living crisis.

The Cost of Living (Tenant Protection) (Scotland) Act was fast-tracked through Holyrood over three days, capping rent rises at 0%, with some landlords able to apply for increases of 3% to cover building costs.

The legislation also banned evictions from being enforced in Scotland until the end of March.

But on Thursday, tenants rights minister Patrick Harvie announced the extension of the eviction ban until September 30 and, while the rent cap will be lifted from 0% to 3% in the private rented sector, the freeze will be scrapped for social landlords, who reached an agreement with ministers that increases would be below inflation.

In a nine-page submission to the Court of Session, signed by Lord Davidson of Glen Cova KC – a former Advocate General for Scotland – the groups argue the legislation has led to “a material adverse impact on the income and capital of landlords renting property in Scotland”.

They further complained the legislation offered no contribution to landlords to deal with the adverse impact and that the timescales were arbitrary.

The document also argued that the Act violated Article 14 of the European Convention on Human Rights – written to offer protection from discrimination.

A spokesman for the Scottish Government said: “We recognise the role of the private rented sector in providing homes for let, and acknowledge that some costs have been rising for landlords as well as tenants.

“The emergency legislation passed by Parliament requires us to keep measures under regular review.

“So, subject to the approval of Parliament, we intend to allow landlords in the private sector to increase rents by up to 3%, or alternatively to apply to Rent Service Scotland for an increase of up to 6% to help cover defined cost increases associated with their let property.

“We are not aware of a legal action being served on the Scottish Ministers challenging the Cost of Living (Tenant Protection) (Scotland) Act 2022.”

John Blackwood, the chief executive of SAL, said the result of the legislation had been “just as concerning as we predicted”, with landlords being forced to sell properties reducing the housing supply.

“While the Scottish Government sees fit to raise council and housing association tenants’ rents, so social landlords can do repairs and improvements, they fail to realise that private landlords are faced with similar financial pressures,” he said.

“The ministerial statement in Parliament last week, and yesterday’s announcement, make it perfectly clear the Scottish Government plans to continue with eviction ban and rent increase restrictions in the private rented sector beyond 31 March.

“Landlords have had enough.

“We must stand united to protect our property rights by challenging this unfair legislation in court.”

Sarah Jane-Laing, the chief executive of SLE, said the Scottish Government had sought to “unfairly penalise” private landlords, adding: “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.”

Propertymark CEO Nathan Emerson added: “The private rented sector has been clearly singled out with complete disregard for the positive impact it provides.

“It is vital that we ensure that the residential property sector in Scotland is investible and that is why we have been left with no choice but to formally object to these measures with the Court of Session in Scotland.”