Part 1

Rent
Chapter 2

Rent control areas: modifications of the 2016 Act

Information about rent to be included in advertisements

Prospective landlords’ duty to include information about rent in advertisements
22
1
The 2016 Act is modified as follows.
2
After section 17 insert—

Information about rent to be included in advertisements

Prospective landlords’ duty to include information about rent in advertisements: property is not exempt property
17A
1
A person—
a
who proposes to let a property that is not an exempt property in a rent control area (“the advertised property”) on an agreement that may give rise to a private residential tenancy, and
b
who is communicating with another person by way of advertisement in writing with a view to entering into such an agreement,
must include the information mentioned in subsection (2) in the advertisement.
2
The information referred to in subsection (1)—
a
where the advertised property was let previously, is—
i
the rent payable under the previous tenancy,
ii
whether there was a relevant rent increase during the period of 12 months before the date on which the advertisement of the advertised property is published,
iii
if there was such an increase, the date on which the most recent increase took effect,
iv
the rent that the prospective landlord proposes to be payable under the tenancy (but see also subsection (3)),
v
confirmation that the property is in a rent control area,
b
where the advertised property was not let previously, is—
i
the rent that the prospective landlord proposes to be payable under the tenancy,
ii
confirmation that the property is in a rent control area.
3
The information about the rent that the prospective landlord proposes to be payable under the tenancy (which must be included in the advertisement under subsection (2)(a)(iv)) must also mention that this proposed rent may change according to any variation in the consumer prices index before the start of any tenancy (in accordance with section 43G).
4
For the purpose of subsection (2), subject to subsection (5), an advertised property was let previously if—
a
there was a previous private residential tenancy or assured tenancy of property that is the same or substantially the same as the advertised property (“the previous tenancy”),
b
the previous tenancy immediately preceded the proposed let of the advertised property, and
c
the previous tenancy ended no more than 12 months before the date on which the advertisement of the advertised property is published.
5
But an advertised property was not let previously if—
a
the person who is to become the landlord under the proposed tenancy purchased the property with vacant possession, and
b
the proposed tenancy is to be the first private residential tenancy of the property to be granted by that person since the purchase.
6
The Scottish Ministers may by regulations—
a
modify subsection (2) to add or remove information to be included in an advertisement referred to in subsection (1),
b
modify subsection (4) or (5) to adjust the meaning of the expressions included in those subsections.
7
In this section—
- “advertisement” includes any form of advertising whether—
  1. to the public generally,
  2. to any section of the public, or
  3. individually to selected persons,
- “assured tenancy” means an assured tenancy under the Housing (Scotland) Act 1988,
- “consumer prices index” means—
  1. the all items consumer prices index published by the Statistics Board, or
  2. if that index is not published for a month, any substituted index or figures published by the Board,
- “exempt property” has the meaning given by section 17D(1),
- “relevant rent increase”, in relation to the advertised property, means—
  1. an increase in the amount payable in rent under a private residential tenancy or an assured tenancy of a property that is the same or substantially the same as the advertised property (“a relevant tenancy”),
  2. a setting of the amount payable in rent at the start of a relevant tenancy (“tenancy A”) if—
    1. that amount exceeded the amount payable in rent at the end of the relevant tenancy immediately preceding tenancy A (“tenancy B”),
    2. tenancy B ended no more than 12 months before the start of tenancy A, and
    3. tenancy A was not the first private residential tenancy or assured tenancy of the property granted by the landlord under the tenancy following the landlord’s purchase of the property with vacant possession.
8
For the purpose of this section, whether property let (or to be let) under a tenancy is the same or substantially the same as property let under an earlier tenancy is to be determined with reference to a comparison between the description of each property in the terms applying to each tenancy.
.
3
After section 17A (inserted by subsection (2)) insert—

Prospective landlords’ duty to include information about property in advertisements: exempt property
17B
1
Subsection (2) applies where a person—
a
is proposing to let a property that is an exempt property in a rent control area on an agreement that may give rise to a private residential tenancy, and
b
is communicating with another person by way of advertisement in writing with a view to entering into such an agreement.
2
The person must include in the advertisement—
a
a statement that the property is an exempt property,
b
information about the manner in which the property has been confirmed, in accordance with regulations under section 17D(1), as being an exempt property, and
c
any number (including a registration number) associated with the confirmation of the property as an exempt property.
3
In this section—
- “advertisement” has the same meaning as in section 17A,
- “exempt property” has the meaning given by section 17D(1).
.

Setting and variation of rent

Setting and variation of rent
23
1
The 2016 Act is modified as follows.
2
The title of Part 4 (rent) becomes “Rent: properties not in a rent control area (or properties that are exempt properties)”.
3
After the title of Chapter 1 of Part 4 but before the italic heading (“Restrictions on rent increases”) insert—

Application of this Part

Application of this Part
17C
1
This Part applies in relation to a private residential tenancy of a property that—
a
is not in a rent control area, or
b
is in a rent control area but is an exempt property.
2
In this Part, “exempt property” has the meaning given by section 17D(1).

Meaning of “exempt property”
17D
1
In this Part and Part 4A, an “exempt property” means a property that—
a
is of a description specified in regulations made by the Scottish Ministers, and
b
is confirmed as being of that description in accordance with one or more processes specified in those regulations.
2
Regulations under subsection (1) may specify a description referred to in paragraph (a) of that subsection, in relation to a 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,
c
a description of the property according to its type.
3
A process referred to in subsection (1)(b) that is specified in regulations under subsection (1), in relation to a property, may, in particular, include—
a
approval by a person specified in the regulations that the property is of a description referred to in subsection (1)(a),
b
signification in a form specified in the regulations that the property is of a description referred to in subsection (1)(a), which may include the inclusion of the property in a register specified in the regulations.
4
If regulations under subsection (1) provide that a person specified in the regulations is to approve that a property is of a description referred to in subsection (1)(a), the regulations may, in particular, make provision for or in connection with—
a
the procedure to be followed in connection with applications for approval,
b
the form and manner in which applications are to be made (including the documents that are to accompany applications),
c
fees in connection with applications,
d
the duration of approval,
e
the withdrawal of approval,
f
publication of decisions to approve or to refuse to approve applications,
g
appeals against—
i
a decision to refuse approval, or
ii
a decision to withdraw approval,
h
requirements for the landlord of a property to notify any tenant—
i
that an application for approval has been made, and
ii
of the outcome of the application.
5
If regulations under subsection (1) provide that confirmation that a property is of a description referred to in subsection (1)(a) is to be signified by the inclusion of the property in a register specified in the regulations, the regulations may, in particular, make provision for or in connection with—
a
the establishment and maintenance of the register,
b
the procedure to be followed in connection with applications for entry of a property in the register,
c
the form and manner in which applications are to be made (including the documents that are to accompany applications),
d
fees in connection with applications,
e
the period for which a property is to be entered in the register (unless the entry is removed earlier),
f
removal of entries from the register,
g
access to the register by members of the public,
h
appeals against—
i
a decision to refuse to enter a property in the register, or
ii
a decision to remove a property from the register,
i
requirements for the landlord of a property to notify any tenant—
i
that an application for entry of the property in the register has been made, and
ii
of the outcome of the application.
6
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
b
may consult any other person they consider appropriate.
7
The requirement to consult under subsection (6)(a) may be met by consultation carried out before this section takes effect.
.
4
After Part 4 (rent) insert—
Part 4A

Rent: properties in a rent control area (other than exempt properties)
Chapter 1

Initial provisions and restrictions in relation to rent etc.

Application of this Part

Application of this Part
43A
1
This Part applies in relation to a private residential tenancy (in this Part, a “current tenancy”) of a property that—
a
is in a rent control area, and
b
is not an exempt property.
2
In this Part, “exempt property” has the meaning given by section 17D(1).

Key definitions in this Part

Meaning of property that is “previously let” and the “immediately preceding tenancy”
43B
1
In this Part, a reference to the property let under a current tenancy as having been previously let is a reference to a property that—
a
is the same or substantially the same as the property that was let under the immediately preceding tenancy, and
b
is not an excluded property as mentioned in subsection (2).
2
For the purpose of subsection (1), the property let under the current tenancy is an excluded property if—
a
it was purchased by the landlord under the tenancy with vacant possession, and
b
the tenancy is the first private residential tenancy of the property granted by the landlord since the purchase.
3
In this Part, a reference to the immediately preceding tenancy is, in relation to a current tenancy, a reference to a private residential tenancy or an assured tenancy that—
a
immediately preceded the current tenancy, and
b
ended no more than 12 months before the start of the current tenancy.
4
The Scottish Ministers may by regulations modify this section to adjust the meaning of the expressions included in this section.

Meaning of “relevant rent increase”
43C
1
In this Part, “relevant rent increase”, in relation to a current tenancy, means—
a
an increase in the amount payable in rent under a previous private residential tenancy or an assured tenancy of a property that is the same or substantially the same as the property let (or to be let) under the current tenancy (“a relevant tenancy”),
b
a setting of the initial rent under a relevant tenancy (“tenancy A”) if—
i
that initial rent is an amount exceeding the final rent under the relevant tenancy that immediately preceded tenancy A (“tenancy B”),
ii
tenancy B ended no more than 12 months before the start of tenancy A, and
iii
the property let under tenancy A is not an excluded property as mentioned in subsection (2).
2
For the purpose of subsection (1), property let under tenancy A is an excluded property if—
a
the property was purchased by the landlord under tenancy A with vacant possession, and
b
tenancy A was the first private residential tenancy or assured tenancy granted by the landlord since the purchase.

Meaning of “permitted rate”
43D
1
In this Part, the “permitted rate” means the lower of—
a
CPI% plus one percentage point (but see subsection (3)), and
b
6%.
2
In this section—
- “consumer prices index” means—
  1. the all items consumer prices index published by the Statistics Board, or
  2. if that index is not published for a month, any substituted index or figures published by the Board,
- “CPI%” means the percentage increase or decrease (rounded to the nearest 0.1%) in the consumer prices index, calculated by reference only to—
  1. the latest index, and
  2. the index published for the month which was 12 months before that to which the latest index relates,
- “the latest index”—
  1. in a case of setting the initial rent under the current tenancy, means the last index published before the day on which the tenancy starts,
  2. in a case of a rent-increase notice, means the last index published before the day on which the notice is given to the tenant.
3
If the total percentage determined under subsection (1)(a) is less than 0%, it is to be treated instead as if it were 0%.

Meaning of “permitted rate”: further provision
43E
1
The Scottish Ministers may by regulations modify section 43D to substitute a different economic index for the one for the time being mentioned there.
2
The Scottish Ministers may by regulations modify section 43D to—
a
substitute a different percentage point for the one for the time being specified in subsection (1)(a) of that section,
b
substitute a different percentage for the one for the time being specified in subsection (1)(b) of that section.
3
The Scottish Ministers may make regulations under subsection (2) only if they consider that the modification is necessary to ensure that restrictions imposed by this Part on the rent payable under private residential tenancies of properties in a rent control area (other than exempt properties) are—
a
necessary and proportionate for the purpose of protecting the social and economic interests of tenants in the area, and
b
a necessary and proportionate control of landlords’ use of their property in the area.
4
Before laying a draft of a Scottish statutory instrument containing regulations under subsection (1) or (2) before the Scottish Parliament, 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.

Meaning of other terms
43F
1
In this Part—
- “assured tenancy” means an assured tenancy under the Housing (Scotland) Act 1988,
- “final rent”, in relation to a tenancy, means the amount that was payable in rent at the end of the tenancy,
- “initial rent”, in relation to a tenancy, means the amount that is (or is to be) payable in rent at the start of the tenancy,
- “previous rent increase”, in relation to a current tenancy, means—
  1. a setting of the initial rent under the current tenancy that exceeds the final rent under the immediately preceding tenancy, or
  2. a relevant rent increase.
2
For the purpose of this Part, whether property let under a tenancy is the same or substantially the same as property let under a previous tenancy is to be determined with reference to a comparison between the description of each property in the terms applying to each tenancy.

Restriction on setting of initial rent by landlord

Restriction on setting of initial rent by landlord
43G
1
This section applies if the property let (or to be let) under a current tenancy was previously let.
2
If there was a relevant rent increase during the period of 12 months before the start of the current tenancy, the initial rent under the current tenancy may not be more than the final rent under the immediately preceding tenancy.
3
If there was not a relevant rent increase during the period of 12 months before the start of the current tenancy, the initial rent under the current tenancy may not be more than the final rent under the immediately preceding tenancy as increased by the permitted rate.

Restrictions on rent increases

Method by which rent may be increased
43H
The rent payable under a current tenancy may be increased only in accordance with Chapter 2.

Frequency with which rent may be increased
43I
1
The rent payable under a current tenancy may not be increased—
a
if the let property was previously let—
i
on the first occasion after the setting of the initial rent under the current tenancy, unless the most recent previous rent increase took effect more than 12 months previously,
ii
thereafter, more than once in a 12 month period,
b
if the let property was not previously let—
i
during the first 12 months of the current tenancy except in such circumstances as may be prescribed by the Scottish Ministers in regulations,
ii
more than once in any other 12 month period.
2
For the purpose of subsection (1)(a)(ii) or (b)(ii), where the last rent increase resulted from an order of a rent officer or the First-tier Tribunal, the 12 month period is to be regarded as commencing on the date on which the rent would have been increased in accordance with section 43L(4) had a referral to a rent officer not been made.

Restrictions on other charges and diligence

No premiums, advance payments, etc.
43J
1
Sections 82, 83 and 86 to 90 of the Rent (Scotland) Act 1984 apply in relation to a current tenancy as they apply in relation to a tenancy of the kind to which those sections refer.
2
But—
a
section 83(5) of that Act is to be ignored,
b
the date mentioned in section 88(1) of that Act is to be read as if it were the date on which this section comes into force.

Restriction on diligence
43K
Except with the leave of the First-tier Tribunal, no diligence is to be done in respect of—
a
the rent due by a tenant or former tenant under a current tenancy,
b
any liability of a tenant or former tenant arising under section 43U.
Chapter 2

rent variation instigated by landlord’s notice

Rent-increase notice given by landlord

Landlord’s power to increase rent by no more than the permitted rate
43L
1
The landlord under a current tenancy may increase the rent payable under the tenancy by giving the tenant a notice in accordance with this section (“a rent-increase notice”).
2
But the landlord under a current tenancy may not increase the rent payable under the tenancy by more than the permitted rate.
3
The rent-increase notice must––
a
specify––
i
the rent that will be payable once the increase takes effect,
ii
the day on which the increase is to take effect,
iii
the reasons for the rent payable under the tenancy being increased, and
b
fulfil any other requirements prescribed by the Scottish Ministers in regulations.
4
The rent increase takes effect on the effective date, unless before that date—
a
the landlord intimates to the tenant that the notice is rescinded,
b
the tenant makes a referral to a rent officer under section 43N(2), or
c
the tenant applies to the First-tier Tribunal under section 43S(1).
5
For the purpose of subsection (4), the effective date is the date of the later of—
a
the day specified in the notice in accordance with subsection (3)(a)(ii), or
b
the day after the day on which the minimum notice period ends.
6
In subsection (5)(b), “the minimum notice period” means the period that—
a
begins on the day the notice is received by the tenant, and
b
ends on the day falling—
i
three months after it began, or
ii
whatever longer period after it began as the landlord and tenant have agreed between them.
7
In subsection (6), the reference to a period of three months is to a period that ends in the month that falls three months after the month in which it began, either—
a
on the same day of the month as it began, or
b
if the month in which the period ends has no such day, on the final day of that month.

Modification of rent-increase notice by parties
43M
1
This section does not apply in relation to a current tenancy if the permitted rate is 0%.
2
Anything specified in a rent-increase notice in accordance with section 43L(3)(a) may be modified by agreement between the landlord and tenant under the current tenancy.
3
But the landlord and the tenant may not modify a rent-increase notice under subsection (2) so as to increase the rent payable under the current tenancy by more than the permitted rate.
4
A modification made to a rent-increase notice by virtue of subsection (2) ceases to have effect if the notice subsequently prompts a referral to a rent officer under section 43N(2).

Tenant’s referral of rent-increase notice to rent officer

Tenant’s right to refer rent-increase notice to rent officer
43N
1
If a tenant who has received a rent-increase notice considers that the proposed increase in the rent payable under the current tenancy is more than the permitted rate, the tenant must notify the landlord in writing of the tenant’s view before the end of the day falling 30 days after the tenant receives the notice.
2
The tenant may make a referral to a rent officer for the area in which the let property is situated seeking a decision under section 43O in relation to the rent-increase notice if, before the end of the day falling 21 days after the landlord receives notification from the tenant under subsection (1), either—
a
where the permitted rate is 0%, the landlord has not notified the tenant in writing that the rent-increase notice has been withdrawn, or
b
in any other case, the landlord and the tenant have not agreed to a modification of the rent-increase notice so as to increase the rent payable in respect of the let property by no more than the permitted rate.
3
A referral to a rent officer under subsection (2) must be––
a
in the prescribed form,
b
accompanied by the prescribed fee (if any),
c
intimated by the tenant to the landlord in the prescribed manner, and
d
made before the end of the day falling 42 days after the landlord receives notice from the tenant under subsection (1).
4
In subsection (3), “prescribed” means prescribed by the Scottish Ministers in regulations.

Rent officer’s power to set rent
43O
1
Where a rent officer receives a referral under section 43N(2), the rent officer is to decide whether the rent specified in accordance with section 43L(3)(a)(i) in the rent-increase notice would be an increase in the rent payable under the current tenancy of more than the permitted rate.
2
If the rent officer decides under subsection (1) that the rent specified in the rent-increase notice would be an increase in the rent payable under the current tenancy of no more than the permitted rate, the rent officer must make an order stating that from the effective date the rent payable under the tenancy is the rent specified in the rent-increase notice.
3
If the rent officer decides under subsection (1) that the rent specified in the rent-increase notice would be an increase in the rent payable under the current tenancy of more than the permitted rate, the rent officer must make an order stating—
a
where the permitted rate is 0%, that the rent-increase notice has no effect,
b
in any other case, that from the effective date the rent payable under the current tenancy is the rent determined by the rent officer.
4
The rent determined by the rent officer under subsection (3)(b) must be the rent payable under the current tenancy as increased by the permitted rate.
5
For the purpose of subsections (2) and (3), the effective date is—
a
where the rent officer makes the order 14 days or more before the original effective date, the original effective date,
b
otherwise, the first payment date falling at least 14 days after the day on which the rent officer makes the order.
6
In subsection (5)—
- “original effective date” means the date on which the rent would have been increased in accordance with section 43L(4) had the referral to the rent officer not been made under section 43N(2),
- “payment date” means a date on which a rent payment falls to be made in accordance with the terms of the current tenancy.

Rent officer’s power to correct order
43P
1
A rent officer may, within 14 days of making an order under section 43O(2) or (3), remake the order for the purpose of curing an error in the original order made under that subsection.
2
The effective date of the remade order is to be specified in accordance with subsection (2) or (3) of section 43O as though it were an order made under either of those subsections.
3
Where an order is remade under this section—
a
the original order is of no effect,
b
other than in subsection (1), references in this Part to an order made under section 43O(2) or (3) are to be read as references to the remade order,
c
if a request for review of the original order has been made under section 43Q(1), the review is to be regarded as having been made against the remade order.

Right of review to another rent officer
43Q
1
Where a rent officer has made an order under section 43O(2) or (3) in relation to the rent payable under a current tenancy, the landlord or the tenant may request a review of the order by a different rent officer.
2
A request for a review of an order under subsection (1) must—
a
be made before the end of the day falling 14 days after the order is made,
b
be in the prescribed form,
c
be intimated by the landlord or the tenant (as the case may be) to the other party to the tenancy by sending a copy of the request to the other party.
3
Requesting a review under subsection (1) renders the order being reviewed of no effect.
4
In subsection (2), “prescribed” means prescribed by the Scottish Ministers in regulations.

Other rent officer’s power to set rent
43R
1
Where a rent officer receives a request for a review under section 43Q(1), the rent officer is to decide whether the rent specified in accordance with section 43L(3)(a)(i) in the rent-increase notice prompting the referral to the first rent officer under section 43N(2) would be an increase in the rent payable under the current tenancy of more than the permitted rate.
2
If the rent officer decides under subsection (1) that the rent specified in the rent-increase notice would be an increase in the rent payable under the current tenancy of no more than the permitted rate, the rent officer must make an order stating that from the effective date the rent payable under the current tenancy is the rent specified in the rent-increase notice.
3
If the rent officer decides under subsection (1) that the rent specified in the rent-increase notice would be an increase in the rent payable under the current tenancy of more than the permitted rate, the rent officer must make an order stating that from the effective date the rent payable under the current tenancy is the rent determined by the rent officer.
4
The rent determined by the rent officer under subsection (3) must be the rent payable under the current tenancy as increased by the permitted rate.
5
For the purpose of subsections (2) and (3), the effective date is—
a
where the rent officer makes the order 14 days or more before the original effective date, the original effective date,
b
otherwise, the first payment date falling at least 14 days after the day on which the rent officer makes the order.
6
In subsection (5)—
- “original effective date” means the date on which the rent would have been increased in accordance with section 43L(4) had the referral to the rent officer not been made under section 43N(2),
- “payment date” means a date on which a rent payment falls to be made in accordance with the terms of the current tenancy.
7
Where the rent officer makes an order under subsection (2) or (3), the order under section 43O(2) or (3) to which the request for review under section 43Q(1) relates is of no effect.

Tenant’s application to First-tier Tribunal relating to rent-increase notice

Tenant's right to apply to First-tier Tribunal in relation to rent-increase notice
43S
1
A tenant under a current tenancy of a property that was previously let who has received a rent-increase notice on the first occasion under the tenancy may apply to the First-tier Tribunal for determination of whether—
a
a previous rent increase took effect less than 12 months before the day on which the increase is to take effect (as specified in the notice in accordance with section 43L(3)(a)(ii)),
b
the initial rent under the tenancy (that is proposed to be increased by the rent-increase notice) was not set in accordance with section 43G(2) or (3) (as the case may be).
2
A tenant may make an application under subsection (1) only if—
a
the tenant has notified the landlord in writing before the end of the day falling 30 days after the tenant receives the rent-increase notice as to why the tenant considers that the circumstances mentioned in paragraph (a) or (b) (as the case may be) of subsection (1) are met, and
b
before the end of the day falling 21 days after the landlord receives notification from the tenant under paragraph (a), the landlord and tenant have not agreed to a modification of the rent-increase notice as mentioned in subsection (3).
3
The modification referred to in subsection (2)(b) is—
a
where the tenant considers that the circumstances mentioned in subsection (1)(a) are met, a modification so that the increase in rent is to take effect 12 months or more after the most recent previous rent increase took effect,
b
where the tenant considers that the circumstances mentioned in subsection (1)(b) are met, a modification so that the increase in the rent payable is based on increasing an amount of rent that is set in accordance with section 43G(2) or (3) (as the case may be).
4
An application to the First-tier Tribunal under subsection (1) must be—
a
intimated by the tenant to the landlord in the prescribed manner, and
b
made before the end of the day falling 42 days after the landlord receives the notice from the tenant in accordance with subsection (2)(a).
5
In subsection (4), “prescribed” means prescribed by the Scottish Ministers in regulations.

First-tier Tribunal’s powers on an application under section 43S(1)
43T
1
Subsection (2) applies where the First-tier Tribunal receives an application under section 43S(1)(a) in relation to a rent-increase notice given under a current tenancy.
2
If the Tribunal determines—
a
that any previous rent increase took effect less than 12 months before the original effective date, the Tribunal must make an order that the rent-increase notice is of no effect (and accordingly the rent payable under the current tenancy is unchanged),
b
that any previous rent increase took effect 12 months or more before the original effective date, the Tribunal must make an order stating that from the effective date the rent payable under the current tenancy is the lower of—
i
the rent specified in the rent-increase notice in accordance with section 43L(3)(a)(i), and
ii
the rent payable under the tenancy as increased by the permitted rate.
3
Subsection (4) applies where the First-tier Tribunal receives an application under section 43S(1)(b) in relation to a rent-increase notice given under a current tenancy.
4
If the Tribunal determines—
a
that the initial rent under the current tenancy (that is proposed to be increased by the rent-increase notice) was not set in accordance with section 43G(2) or (3) (as the case may be), the Tribunal must make an order stating that from the effective date the rent payable under the tenancy is the rent determined by the Tribunal,
b
that the rent payable at the start of the current tenancy (that is proposed to be increased by the rent-increase notice) was set in accordance with section 43G(2) or (3) (as the case may be), the Tribunal must make an order stating that from the effective date the rent payable under the tenancy is the lower of—
i
the rent specified in the rent-increase notice in accordance with section 43L(3)(a)(i), and
ii
the rent payable under the tenancy as increased by the permitted rate.
5
In determining the rent under subsection (4)(a), the First-tier Tribunal may not determine that the rent payable under the current tenancy from the effective date is more than the base rent as increased by the permitted rate.
6
For the purpose of subsection (2) or (4), the effective date is—
a
where the Tribunal makes the order 14 days or more before the original effective date, the original effective date,
b
otherwise, the first payment date falling at least 14 days after the day on which the Tribunal makes the order.
7
In this section—
- “base rent” means the amount of rent that would have been payable from the start of the current tenancy had the rent been set in accordance with section 43G(2) or (3) (as the case may be),
- “original effective date” means the date on which the rent would have been increased in accordance with section 43L(4) had the referral to the First-tier Tribunal not been made under section 43S(1),
- “payment date” means a date on which a rent payment falls to be made in accordance with the terms of the current tenancy.

Matters arising from referral to rent officer or application to First-tier Tribunal

Tenant’s liability for underpaid rent
43U
1
This section applies where––
a
the rent payable under a current tenancy has been changed by an order made under—
i
section 43O(2) or (3),
ii
section 43R(2) or (3), or
iii
section 43T(2)(b) or (4)(a) or (b),
b
the effective date stated in the order (“the actual effective date”) falls later than the date on which the rent would have been increased in accordance with section 43L(4) had a referral to a rent officer not been made under section 43N(2) or, as the case may be, had an application to the First-tier Tribunal not been made under section 43S(1) (“the originally proposed effective date”), and
c
the rent payable from the actual effective date (“the new rent”) is more than the rent payable immediately before that date (“the old rent”).
2
On the date the order is made the tenant becomes liable under this subsection to pay the landlord the difference between––
a
the amount that would have been payable in rent between the originally proposed effective date and the actual effective date had the new rent been the rent payable from the originally proposed effective date, and
b
the amount that should have been paid in rent during the same period (whether or not it was actually paid).
3
Subsection (4) applies if, at the end of the day falling 28 days after a tenant’s liability under subsection (2) arose, that liability is (in whole or in part) still outstanding.
4
For the purposes of paragraph 12 of schedule 3, the liability mentioned in subsection (3) is to be regarded as a sum that fell to be paid by way of rent on the day the liability arose.
5
In this section, a reference to a period between two dates includes both of those dates.

Withdrawal of referral or request for review by rent officer or application to First-tier Tribunal
43V
1
This section applies—
a
where a referral to the rent officer made under section 43N(2) is withdrawn by the tenant,
b
where—
i
a request for a review by another rent officer made under section 43Q(1) is withdrawn by one party, and
ii
either—
A
the other party has not requested a review in respect of the tenancy in question, or
B
any request for a review by the other party has been withdrawn, or
c
where an application to the First-tier Tribunal made under section 43S(1) is withdrawn by the tenant.
2
The order maker must make an order under section 43O(2) or (3), section 43R(2) or (3), or section 43T(2)(b) or (4)(a) or (b) (as the case may be), stating that from the effective date the rent payable under the current tenancy concerned is the lower of—
a
the rent specified in the rent-increase notice, and
b
the rent payable under the tenancy as increased by the permitted rate.
3
Where the order maker is another rent officer in relation to the making of an order under section 43R(2) or (3), an order may not be made by virtue of subsection (2) until the expiry of the period within which a request for a review made under section 43Q(1) may be made.
4
In subsection (2)—
- “order maker” means—
  1. in the case of the making of an order under section 43O(2) or (3), the rent officer,
  2. in the case of the making of an order under section 43R(2) or (3), another rent officer,
  3. in the case of the making of an order under section 43T(2)(b) or (4)(a) or (b), the First-tier Tribunal,
- “the rent-increase notice” means the rent-increase notice that, as the case may be—
  1. prompted the referral to the rent officer,
  2. led to the request for review by another rent officer, or
  3. led to the application to the First-tier Tribunal.
Chapter 3

Power of First-tier Tribunal to require landlords to pay penalty or compensation

Power of First-tier Tribunal to require landlords to pay penalty or compensation
43W
1
The Scottish Ministers may by regulations make provision for or in connection with the conferral of powers for the First-tier Tribunal to make an order requiring a landlord to whom subsection (2) applies to pay—
a
a financial penalty, or
b
a compensation payment to the tenant in question.
2
This subsection applies to a landlord against whom any of the following orders has been made—
a
an order of a rent officer made under section 43O(3),
b
an order of a rent officer made under section 43R(3),
c
an order of the First-tier Tribunal under section 43T(2)(a),
d
an order of the First-tier Tribunal under section 43T(4)(a).
3
Regulations under subsection (1) may, in particular, make provision for or in connection with—
a
the maximum amount (not exceeding £1,000) of a financial penalty or a compensation payment that may be imposed by the First-tier Tribunal by virtue of subsection (1),
b
the person to whom any financial penalty is payable,
c
matters to be taken into account by the First-tier Tribunal in determining the amount of a financial penalty or compensation payment imposed by the First-tier Tribunal,
d
the arrangements for payment of a financial penalty or compensation payment,
e
appeals against the imposition, or the amount, of a financial penalty or compensation payment,
f
enforcement relating to the payment of any financial penalty or compensation payment imposed by an order of the First-tier Tribunal.
4
Before laying a draft of a Scottish statutory instrument containing regulations under subsection (1) before the Scottish Parliament, 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.
5
The requirement to consult under subsection (4)(a) may be met by consultation carried out before this section takes effect.
.
S. 22 not in force at Royal Assent, see s. 86(2)
S. 23 not in force at Royal Assent, see s. 86(2)