An appeal has been made to ‘Individuals and businesses working in the private rented sector’ to help fund a legal challenge to Scotland’s current rent freeze and ban on repossessions.
This will come in the form of a judicial review is to be held later this month with ‘a more substantive hearing’ in May.
‘Bringing a judicial review is expensive, with the initial review likely to cost more than £60,000 in legal costs and court fees’, the Scottish Association of Landlords has told its members. None of the organisations involved in this case have the resources to challenge the Scottish Government alone, it said.
Consequently a crowdfunding campaign has been mounted by a coalition of organisations from across the UK’s private rented sector, including SAL, the National Residential Landlords Association, PropertyMark and Scottish Land and Estates.
They argue that the Scottish Government’s rent cap and eviction moratorium, introduced as an ’emergency’ step needed to combat the cost of living crisis, was unjustified and should not have been enacted without proper prior consultation.
The measures were intended to remain in place for a minimum of six months, with the ability to extend for a further 12 months. But, say the landlord organisations, the Scottish Government has already extended the legislation to 30 September 2023, ‘and we believe is likely to extend it further to 31 March 2024’.
The rent controls apply irrespective of tenants’ and landlords’ individual financial position, on the assumption that all tenants are vulnerable and all landlords can withstand increasing costs.
The law does not make any distinction or provide relief based on different circumstances of landlords; between larger, institutional companies that might be able to shoulder increased costs and individual landlords who might not.
And the eviction ban delays the addressing of matters such as arrears which adversely impact landlords’ cash flow culminating in a reduction in capital value.
‘Renters across Scotland are being hit by policies which undermine the supply of the very homes they need’, said NRLA chief executive Ben Beadle. ‘It is deeply worrying that such damaging and short-sighted policies can be developed without proper consultation with stakeholders.
‘I urge all those wanting sensible policy that works for both renters and responsible landlords to support the campaign’.
For SAL, chief executive John Blackwood said it was his organisation’s job is to stand up for members. ‘Over the years we have been able to do that in a constructive manner with the Scottish Government and, as a result, have secured changes which have improved the private rented sector in Scotland.
‘However, arbitrary rent freezes and eviction bans discriminate against private landlords, reduce investment and harm both landlords and tenants, while making it harder to solve Scotland’s housing crisis.
‘With pressure being placed on landlords by governments throughout the UK, now more than ever, landlords all over the country need to work together in ensuring our voice is heard’.
