Scotland's landlords threaten Sturgeon's government with legal action to block rent freeze

Scotland's landlords and sporting estates have threatened Nicola Sturgeon's government with legal action to block her controversial rent freeze as it cleared its first hurdle at Holyrood.

The Scottish Association of Landlords (SAL) said the Cost of Living (Tenant Protection) (Scotland) Bill was "full of holes" that could leave it open to legal challenge, particularly for breaching property rights.

John Blackwood, the industry body's chief executive, said SNP and Green MSPs had chosen to "ram this Bill through" in only three days this week in search of "cheap political headlines".

He accused them of exacerbating a housing crisis "they have created" by failing to encourage enough investment in building homes and warned the rent freeze would deter construction.

His outspoken intervention was echoed by Scottish Land & Estates, representing the country's sporting estates and land managers, which warned the legislation was "a watershed moment that will damage the provision of housing for years to come".

Stephen Young, the industry body's head of policy, said it was also consulting its legal advisors on whether the Bill was "compliant with other legislation".

It is understood he was referring to the European Convention on Human Rights, which states that everyone "is entitled to the peaceful enjoyment of his possessions".

Freeze could make student housing 'financially unviable'

Patrick Harvie, the Tenants' Right Minister and one of two Greens in Ms Sturgeon's government, insisted the legislation "strikes the right balance" and would not breach landlords' rights.

But Scotland's universities also warned any freeze that lasts longer than six months could make their student housing "financially unviable, put jobs at risk and further reduce supply". Glasgow University recently advised students without accommodation not to enrol for their courses.

Although the Bill allows them to evict students convicted of criminal offences or antisocial behaviour, Universities Scotland warned they must also be permitted to oust those who pose a "violent or sexual" risk to others.

The legislation gives Ms Sturgeon's ministers the power to limit rent rises for private, social and university housing backdated from Sept 6 until the end of March next year, with the cap set at zero per cent.

They could also extend the freeze, or vary the cap, over two further six-month periods, meaning the freeze could be in place for a total of 18 months.

Bill will only have three days of scrutiny

Landlords will be banned from pursuing enforcement of eviction legal action if the cost of living crisis means their tenants can no longer afford their rents, except in a limited number of "specified circumstances".

If the surge in interest rates leads to a rise in their mortgage payments, the Bill allows landlords to make an application to a rent officer asking for permission to impose a rise above the cap set by ministers.

But they are only allowed to ask for a rent rise equivalent to "no more than 50 per cent" of the increase in their mortgage interest payments. In addition, any rent rise given the green light must be capped at three per cent.

The Bill was published on Monday evening and will be rushed through Holyrood this week with only three days of scrutiny.

MSPs endorsed the Bill's principles by 88 votes to 29 on Tuesday evening, with only the Tories opposed. Any amendments will be considered on Wednesday and a final vote will take place on Thursday.

Mr Blackwood said: "We know the SNP and Greens will ram this Bill through but that will only result in poor law. We can already see it is full of holes and may well be open to legal challenge, particularly around protection of private property and ownership.”

Mr Young said: "It has reached a stage where it is no longer about landlords’ rights or tenants’ rights – it is about further ill-advised reforms from government that will shatter the ability of the rented sector to function properly and will ultimately dent the supply of housing."

Miles Briggs, the Scottish Tories' Shadow Housing Secretary, warned the Bill would "supercharge the current housing crisis" and could lead to rising homelessness if supply is cut further.

But Mr Harvie said he was satisfied the Bill was "compliant and within devolved competence".

He said: "There are other European countries with a higher level of regulation, and indeed long-standing systems of rent controls, which have an even bigger private rented sector than Scotland."