Ministers’ decision on whether to designate rent control area 8 Scottish Ministers’ duty to report 5 (1) The Scottish Ministers, having considered a report from a local authority under section 4 or a further report mentioned in section 5(2), must prepare and publish a report— (a) stating— (i) whether or not they propose to lay a draft of a Scottish statutory instrument containing regulations under section 9(1) designating all or part of the area 10 of the local authority as a rent control area, and 1 (ii) the reasons for their decision, (b) including an explanation of such other matters as the Scottish Ministers consider appropriate. (2) The Scottish Ministers must publish the report prepared by them— 15 (a) as soon as reasonably practicable after receiving the relevant local authority report, (b) in such manner as they consider appropriate. 9 Power to designate rent control area (1) Having considered a report from a local authority under section 4 or a further report mentioned in section 5(2), the Scottish Ministers may by regulations designate all or 20 part of the area of the local authority as a rent control area. (2) But the Scottish Ministers may designate under subsection (1) all or part of the area of a local authority only if they are satisfied that restricting the rate of increase in rent payable under private residential tenancies in the area to be designated— (a) is necessary and proportionate for the purpose of protecting the social and economic 25 interests of tenants in the area, and (b) is a necessary and proportionate control of landlords’ use of their property in the area. (3) Regulations under subsection (1) designating an area as a rent control area must provide that the rent payable under a private residential tenancy of a property in the area that 30 is not an exempt property may not be increased by more than an amount specified in the regulations which may include— (a) a specified percentage (which may be 0%), (b) an amount falling within a specified range, (c) an amount calculated with reference to— 35 (i) one or more specified factors, or (ii) other specified criteria (including a formula). (4) Any regulations under subsection (1) cease to have effect on the expiry of a period of 5 years from the day on which the regulations come into force (unless they are revoked before the expiry of that period). 7 Housing (Scotland) Bill Part 1—Rent Chapter 1—Designation of rent control areas (5) In subsection (3)— “an exempt property” has the meaning given by regulations under section 13(1), “specified” means specified in regulations under subsection (1). 10 Designation of rent control area: consultation 5 (1) Before laying a draft of a Scottish statutory instrument containing regulations under section 9(1) designating an area as a rent control area (“the proposed rent control area”), the Scottish Ministers must consult— (a) the local authority within whose area the proposed rent control area is situated, (b) persons who appear to them to represent the interests of tenants and landlords 10 under relevant tenancies of properties in the proposed rent control area. 1 (2) The Scottish Ministers must— (a) consult the persons referred to in subsection (1) in relation to— (i) the specification of the area forming the proposed rent control area, (ii) the form of the rent control measure being considered for the proposed rent 15 control area, (iii) the level of the rent control measure being considered for the proposed rent control area, (b) allow a period of not less than 8 weeks for any representations to be made in response to the consultation. 20 (3) When laying a draft of a Scottish statutory instrument containing regulations mentioned in subsection (1) before the Scottish Parliament, the Scottish Ministers must also lay before the Parliament a report— (a) setting out the reasons why they consider that the regulations should be made including— 25 (i) the reasons for the specification of the area to be designated as a rent control area, and (ii) the reasons for the form and level of the rent control measure to be introduced for the area, (b) describing— 30 (i) the consultation carried out under subsection (1), (ii) any representations received in response to the consultation, and (iii) the changes (if any) from what was originally proposed as a result of those representations. (4) In this Chapter, a “rent control measure” means a restriction on the amount by which 35 the rent payable under a private residential tenancy of a property in a rent control area may be increased as mentioned in section 9(3). 8 Housing (Scotland) Bill Part 1—Rent Chapter 1—Designation of rent control areas 11 Duty to keep rent control area under review (1) The Scottish Ministers must keep under review the operation of any regulations under section 9(1) in relation to each rent control area. (2) Where the Scottish Ministers consider that a rent control measure applying in a rent 5 control area as provided for in regulations under section 9(1) is no longer necessary or proportionate, the Scottish Ministers must as soon as reasonably practicable lay a draft of a Scottish statutory instrument containing regulations under section 9(1) before the Scottish Parliament to vary or revoke the regulations as they consider appropriate. 12 Variation of rent controls in existing rent control area: consultation 10 (1) This section applies where the Scottish Ministers propose to amend a rent control measure 1 specified in regulations under section 9(1) that applies in relation to an existing rent control area. (2) Before laying a draft of a Scottish statutory instrument containing regulations under section 9(1) before the Scottish Parliament to provide for that amendment, the Scottish 15 Ministers must consult— (a) the local authority within whose area the existing rent control area is situated, (b) persons who appear to them to represent the interests of tenants and landlords under relevant tenancies of properties in the existing rent control area. (3) The Scottish Ministers must— 20 (a) consult the persons referred to in subsection (2) in relation to— (i) any revised form of the rent control measure being considered for the existing rent control area, (ii) any revised level of the rent control measure being considered for the existing rent control area, 25 (b) allow a period of not less than 8 weeks for any representations to be made in response to the consultation. (4) When laying a draft of a Scottish statutory instrument containing regulations mentioned in subsection (2) before the Scottish Parliament, the Scottish Ministers must also lay before the Parliament a report— 30 (a) setting out the reasons why they consider that the regulations should be made including the reasons for any revised form or level (or both) of the rent control measure to be introduced for the rent control area, and (b) describing— (i) the consultation carried out under subsection (2), 35 (ii) any representations received in response to the consultation, and (iii) the changes (if any) from what was originally proposed as a result of those representations. 9 Housing (Scotland) Bill Part 1—Rent Chapter 1—Designation of rent control areas Properties exempt from or subject to modified restrictions 13 Properties exempt from rent control area restrictions (1) The Scottish Ministers may by regulations define, for the purpose of section 9(3), what is an exempt property. 5 (2) Regulations under subsection (1) may define a property as an exempt property by reference to such matters (or a combination of matters) as the Scottish Ministers consider appropriate including, in particular— (a) a description of the circumstances relating to the landlord of the property, (b) a description of the circumstances relating to the tenant of the property, 10 (c) a description of the property according to its type. 1 (3) Before laying a draft of a Scottish statutory instrument containing regulations under subsection (1), the Scottish Ministers— (a) must consult persons who appear to them to represent the interests of tenants and landlords, and 15 (b) may consult any other person they consider appropriate. 14 Properties subject to modified rent control area restrictions (1) The Scottish Ministers may by regulations make provision for or in connection with a landlord of a specified property under a private residential tenancy— (a) to increase, with approval from such person as may be specified in the regulations, 20 the rent payable under the tenancy by an amount that is more than the amount that would otherwise be permitted in the area in which the property is situated by regulations under section 9(1), (b) to increase, without such approval, the rent payable under the tenancy by an amount that is more than the amount that would otherwise be permitted in the 25 area in which the property is situated by regulations under section 9(1). (2) In subsection (1), “a specified property” means a property defined in regulations under that subsection by reference to such matters (or a combination of matters) as the Scottish Ministers consider appropriate including, in particular— (a) a description of the circumstances relating to the landlord of the property, 30 (b) a description of the circumstances relating to the tenant of the property, (c) a description of the property according to its type. (3) Regulations under paragraph (a) of subsection (1) may, in particular, specify the process by which a landlord may seek approval from a decision maker (such as a rent officer or the First-tier Tribunal) to increase the rent payable under the tenancy by an amount 35 referred to in that paragraph. (4) Regulations under subsection (1) may modify an enactment, so far as it relates to a specified property, for or in connection with— (a) the method by which a landlord of a specified property may increase the rent payable under a private residential tenancy of a property in the area, 10 Housing (Scotland) Bill Part 1—Rent Chapter 1—Designation of rent control areas (b) any review or appeal— (i) in connection with such an increase, or (ii) of a decision relating to such an increase. (5) Before laying a draft of a Scottish statutory instrument containing regulations under 5 subsection (1), the Scottish Ministers— (a) must consult persons who appear to them to represent the interests of tenants and landlords, and (b) may consult any other person they consider appropriate.