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On the general question of personalisation, I met the Dogs Trust before I was a minister and, knowing that a housing bill would be coming up, the trust raised that issue. It said that it can be helpful for an elderly person, or for someone who cannot get out of their home because of illness, to have a dog as a companion. That was raised two and a bit years ago, before I was a minister, and I think that it is really important.

I have visited the Scottish Association of Landlords to talk about the matter. Procedure is the key thing and must be in place. Is the pet a wee Chihuahua or a great Dane? I might be exaggerating, but the dog has to be appropriate to the size of the property. To me, the onus should be on the tenant to look at that, but we are trying to be as flexible as possible. We will see what that looks like in more detail when the regulations come in.

Regarding landlords, it is all about making sure that they are aware of the procedure and that they have the ability, within reason, to say, for example, that you cannot have a great Dane in a one-bedroom flat. It is about recognising the importance of people having pets as companions and striking the balance. That is a key thing.

Thank you, convener and members of the committee, and good morning. Thank you for the opportunity to set out the vision for the Housing (Scotland) Bill and, in particular, how the measures can help us to build on our existing protections to deliver a private rented sector that works for tenants and landlords, and plays a part in eradicating child poverty.

I understand that the committee intends to provide its stage 1 report in the coming weeks, and I am grateful for your time today. In my evidence to the Social Justice and Social Security Committee on 27 June and 5 September, I highlighted key measures in parts 5 and 6 of the bill on homelessness prevention duties, domestic abuse and fuel poverty. In this meeting, I will focus on the actions that we are taking on other measures in parts 1 to 4 of the bill, such as rent control; increased eviction protection; rights for tenants to request a pet and not be unreasonably refused; and rights for private tenants to make changes to a rented home.

The legislation as introduced builds on the strong housing rights that already exist for people in Scotland, with its renewed focus on supporting tenancies to be sustained, which in turn will lead to less pressure on housing supply. The package of reforms as set out in the bill are, therefore, focused on helping to ensure that people have a safe, secure and affordable place to live. The measures in the bill introduce changes that are positive for both tenants and responsible landlords—for example, by reforming how civil damages for unlawful eviction are calculated; enabling unclaimed tenancy deposit funds to be used for the benefit of private rented sector tenants; and providing a mechanism for joint tenants to end a tenancy in cases when there is no mutual agreement. Due to time constraints, I will not talk about those and the other issues in the bill in detail, however, I am happy to answer any questions that the committee has.

I will turn first to rent control. As I set out in my letter to the committee, I remain committed to delivering our vision for a fairer, well-managed private rented sector that works in the interests of tenants and landlords, and supports on-going investment in rented housing. The bill as introduced sets out the framework for how rent control will be delivered, and I have continued to listen to stakeholders’ views on the benefits of providing more clarity on how rent control would apply. In particular, we have considered the need to set out how rent increases will be capped in areas in which rent controls will apply. To support that, I will lodge amendments at stage 2 that set out how the rent cap will apply in rent control areas. That will provide clarity for all, including tenants, landlords and investors. It will build on the provisions that are already set out in the bill to deliver rent controls, which will involve the designation of rent control areas on a geographically specific basis, supported by a local assessment process, which will be carried out by local authorities. That is to ensure that measures can be tailored to the prevailing rent conditions in a localised area and respond to changing circumstances.

Rent control areas will be designated through affirmative regulations with a requirement for consultation ahead of the regulations being laid. The bill already sets out that a rent control area can be designated only when it is necessary and proportionate for the purpose of protecting the social and economic interests of tenants in that area, and when it is a necessary and proportionate control of a landlord’s use of their property in that area. Furthermore, a rent control area can be designated for only a fixed time period of five years. Redesignation beyond the set period would require to be on the basis that further assessment shows that that would be required. The bill also allows ministers to provide for circumstances in which the rent cap does not apply or in which rent may increase by more than the rent cap.

Secondly, the bill places duties on the tribunal and courts to consider whether there should be a delay to the enforcement of an eviction. That action responds to concerns about the potential negative impact of the timing of an enforcement of an eviction on tenants and the fact that there are certain circumstances and times of year during which being evicted can be particularly problematic. The bill sets out specific factors that the tribunal and courts may take into account when deciding whether it is reasonable to delay an enforcement, such as seasonal pressures, periods of religious significance, exam periods, or where more time is required to access suitable alternative accommodation. The measures recognise that there are certain types of eviction where it would rarely be reasonable for the enforcement to be delayed. Therefore, the bill includes exemptions from the duty for certain repossession grounds such as antisocial conduct, criminal convictions, domestic abuse and vacant and abandoned properties.

Finally, on personalisation and keeping a pet, the bill also introduces a statutory framework for private residential tenants to make certain changes to their home and to keep a pet. There will be a right for tenants, including social tenants, to ask to keep a pet and not be unreasonably refused.

With regard to personalising a rented home, there will be different categories of change. Category 1 changes will not require a tenant to request permission for a change; category 2 changes must be requested, but cannot be unreasonably refused by a landlord. Details of the types of changes under each category will be set out in secondary legislation and will be subject to further consultation.

In relation to personalisation and pets, the bill sets clear timescales for requests to make changes, and regulates how disputes will be managed; for private rented sector cases, that will be done through the First-tier Tribunal for Scotland.

Overall, the measures in the bill are part of our vision for the rented sector in Scotland—we aim to improve affordability and strengthen tenants’ rights, while helping to sustain tenancies for the benefit of tenants and landlords.

I continue to listen to the information that stakeholders share and I will bring forward the amendments at stage 2 that I referred to, once we have had the opportunity to consider in further detail how the options will take account of the interests of tenants and landlords, while also encouraging investment.

My officials and I look forward to answering any questions that members might have on these parts of the bill.

When I spoke to the Social Justice and Social Security Committee about homelessness prevention, we touched on the fact that we contacted local authorities to ask about costs and they gave their best estimates at that time. Colleagues and local authorities have had detailed discussions about what implementation will look like and when the measures will be phased in. That is the important part. The focus of that is not to have additional resource implications for local authorities—I think that Ms Gosal mentioned that. Our discussions with local authorities include asking what additional resources would be required, including for data collection, and discussions are on-going. The financial memorandum provides an estimate, and an updated memorandum will be provided at the end of stage 2.

It is safe to say that discussions are on-going. We have to ensure that the resource is in place around homelessness prevention measures and gathering data on rent controls, because we cannot put any additional pressures on local authorities. As I said, there are on-going discussions, and at stage 2 there will be an updated financial memorandum to reflect that. I do not know whether any colleagues want to mention anything in relation to resource discussions.

I am happy to discuss that in more detail. In principle, it is something that we would consider. The Scottish Association of Landlords has discussed unscrupulous landlords. You mentioned that we are talking about only a small number of people, but how do we ensure that there is not an impact? You are right: the EPC is an important part of how information is provided, and the association recognises that. The association has to make sure that it is limiting the number of landlords such as that who are in place. There could be a carrot-and-stick approach, and the stick would be to include measures on that in the legislation.

I would be happy to talk about that in more detail, convener. I do not know whether Charlotte McHaffie or Catriona MacKean want to comment.

I am keen to look at that more broadly outwith the bill. I have met the Scottish Association of Landlords on a number of occasions, and we have another meeting coming up. One of the key issues is that there has to be a tripartite agreement and almost a strategic approach. That includes not just the Scottish Government, landlords and investors but local authorities. In discussions with local authorities, we are trying to work with them to understand what the private rented sector looks like in Glasgow and in Edinburgh and what other roles it has in other parts of Scotland. When I have meetings with local authorities, I always ask them about the role of their private rented sector.

I have a meeting with John Blackwood and the Scottish Association of Landlords to talk about what that approach looks like. How do we get a closer relationship between the Government, the rented sector and local authorities? We will explore that and see what we can do there. The private rented sector is an incredibly important part of striking the balance with housing, but it is different in every part of Scotland, so it needs slightly different approaches. That is an important aspect.

I will talk about the specifics of the bill. It is important to recognise the private rented sector—I will touch on MMR and BTR in a wee second.

First, the private rented sector is important. We have had discussions with the City of Edinburgh Council and Glasgow City Council and it is fair to say both councils know that they need to work more closely with the PRS in a strategic approach. I would like and would encourage deeper discussions on the role of the PRS in Edinburgh, Glasgow and other parts of Scotland and for that to be part of local housing strategies, and we have written to local authorities about that.

The second consideration is how we ensure that the sector grows, and that needs to be recognised in the bill. The bill tries to strike a balance between what is proposed for rent control and the need to bring in investment. Investment might look like a landlord who currently owns one property buying another; or someone who owns five or 10 properties looking at doubling up. I have said to the SAL that I want to see people coming back into the sector. The latest data shows that numbers have slightly increased. Anecdotally, having spoken to the councils in Edinburgh and Glasgow, I know that they have found that landlords who own single properties are selling up but they are selling those properties to landlords who have a bigger portfolio, such as five, 10 or 15 properties. The number of landlords is probably decreasing and the number of properties in the sector is slightly increasing. At the moment, there is a slight lag, but that is the data that is coming through on that. That is recognised.

There are a couple of other things. If a local authority says that it has a requirement for rent controls and comes to ministers, there is also the opportunity to review the matter then. If there is a change in circumstance, for example, rent controls can be revoked. It is not that they are in place for five years and cannot move. There is an opportunity to discuss them and to have flexibility.

One question is whether we can give that clarity through rent controls. If they are a local authority’s responsibility, there is flexibility to change them if circumstances change. However, we have to balance how we get into MMR and BTR.

Obviously, we recognise that MMR—housing associations—is an important part of the sector. In Glasgow, for example, because the council is a non-stockholding authority, RSLs have a really important part in how MMR stock is developed. Again, we have listened to what Glasgow City Council is saying and we will consider that. It is the same with Edinburgh. There are a number of housing models, not just RSLs. The question is how they deliver.

There is that wider discussion. Local housing allowance obviously has a part to play in the matter. There have been discussions with the UK Government previously and there are discussions now about what the role of LHA is. That is an important part of the matter.

We are trying to encourage BTR. We have churn in properties in Edinburgh and Glasgow. That is turning round. We also need to recognise not just the role of BTR in housing—it is important because it increases supply—but its role in bringing investment into Scotland and in construction jobs, as well as the gross value added that it brings into Scotland.

We have picked up on the importance of those things in the discussions about BTR and MMR that we have had with stakeholders and with individual landlords through the Scottish Association of Landlords, for example. On the other hand, we have to make sure that rent controls are there to protect people who need them. The challenge for me with the bill is in striking the right balance. I think that we are moving in the right direction, and I appreciate the point that you make about it being a framework bill.

I am happy to come back to the convener to discuss amendments and any changes in detail when those come through, but it is important to get the right balance. It is a tough ask in a complex market. It is not that one size fits all, but that is what we hope to achieve. I am happy to come back to the committee at the appropriate stage to discuss those matters.

I mentioned Edinburgh and Glasgow because when we look at rent increases we see that they are areas that have been under pressure. I think that that is down to supply and demand, and to much broader measures. I talked about how we might bring forward strategic sites in Edinburgh and Glasgow. We have had discussions in Edinburgh and Glasgow on that; for example, I asked the Edinburgh city region body to produce a report on the eight strategic sites there and to say what is required to bring them forward and the time for that, because the quicker we can increase supply, the better. That is basic economics around supply and demand. Glasgow is similar—a broader approach will be taken through looking at the city region.

When you look at rent increases in different parts of Scotland, you sometimes see rent increases that are quite low. I have visited parts of Scotland—for example, Inverclyde—that have that opposite problem. Therefore, the local approach is really important. I am not saying that the controls need to be in Edinburgh and Glasgow—that is not a Government target. I gave those as examples because they are the areas where large rent increases have been identified.

Obviously, we would consult the Convention of Scottish Local Authorities and the local authorities on what that looks like, and we would look at the data behind that to be sure about what is taken forward. The process has to be done in consultation with local authorities and based on the data. As I have mentioned, we need to do a little more on the data and to work with local authorities on that. For example, I talked about the size of the PRS in Edinburgh and Glasgow. I would like to see closer collaboration between local authorities, the PRS and the Government on what the sector looks like, its opportunity to grow and its role in tackling homelessness. How do we incentivise people to come back into the PRS? That is a much broader approach.

There is also a need to consult the local community on what rent controls actually look like. However, we need to have flexibility in the system, based on what is required in Edinburgh and in Glasgow. A rent control area will be set out for a period of time, but if we find that the data changes over the period, the rent controls might not stay in place. If there are changes in the economy, we will have the flexibility to remove the rent controls at those times.

I gave Edinburgh and Glasgow as examples because those are the areas where the largest rent increases have been.

I am happy to discuss that in more detail. In principle, it is something that we would consider. The Scottish Association of Landlords has discussed unscrupulous landlords. You mentioned that we are talking about only a small number of people, but how do we ensure that there is not an impact? You are right: the EPC is an important part of how information is provided, and the association recognises that. The association has to make sure that it is limiting the number of landlords such as that who are in place. There could be a carrot-and-stick approach, and the stick would be to include measures on that in the legislation.

I would be happy to talk about that in more detail, convener. I do not know whether Charlotte McHaffie or Catriona MacKean want to comment.

That has been recognised as a key issue. I visited a rent deposit scheme to see the work that it does, and I was impressed by the way that it tries to return deposits to the best of its ability. Unclaimed deposits represent a substantial amount of money, and that is one of the key issues that it discussed with me. It is important to have the necessary contact information. It made the point that, sometimes, it has only one telephone number or email address and that, if somebody changes that, it suddenly cannot get hold of them. People get to the end of their tenancy, move on and forget about their deposit.

I was going to mention that. Of course, we would be happy to take part in that.