Yesterday we received some clarification from the First Minister about the eviction ban and rent freeze. Some details have still to be finalised but we now know the following:
Rent Increase Freeze
This is expected to take the form of a rent cap set at 0% from 6th September 2022 until at least 31st March 2023. Effectively it means rents can’t be increased during this period for active tenancies but it does not apply to levels of rent set during void periods.
Two things to note though:
- Rent increase notices issued before 6th September are expected to be enforceable as normal and
- There may be safeguards put in place to allow rent increases in exceptional cases where landlords can demonstrate extreme financial hardship.
Evictions Ban
It is expected landlords will still be able to serve notice to end the tenancy through the normal steps and, if the tenant doesn’t vacate, landlords can apply to the First Tier Tribunal for an eviction order and the tribunal can grant an eviction order. However, the eviction order will not be enforceable until after 31st March 2023 at the earliest.
There may be exceptions to this for criminal or antisocial behaviour, repossession by a mortgage lender or where the property has been abandoned by the tenants. It is possible further exemptions will be added and it is hoped rent arrears may be one exception added at a later date.
So, is it worth serving notice to leave? Yes it is. If you serve notice to your tenants and they don’t leave, you can apply to the tribunal for an eviction order. This doesn’t happen overnight and at least, you will have the order to present to Sheriff Officers on 1st April 2023. If the eviction ban is extended beyond 31st March 2023 then each individual order would be subject to a maximum delay 6 months. This means if the eviction ban is not lifted on 31st March 2023, then an eviction order issued in December 2022 could be enforced in June 2023.
Final thoughts
Is this the start of rent caps being introduced? Is it coming in under the guise of a temporary rent freeze set at 0% and will it gradually be increased rather than ended entirely? And will the eviction ban become additional time on the notice to leave? Will there be a required period of notice, then an application to FTT to grant an eviction order, then a set period prior to instructing Sheriff Officers to serve the eviction order? In my opinion I think yes to both. I think it’s highly unlikely either of these measures will be brought to an end and, as we saw with Covid recovery legislation, they will be tweaked about a bit but brought into permanent legislation in some form adding extra steps for landlords and agents and lengthy uncertainty for tenants. It remains to be seen and I hope I’m proved wrong.