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I supported the national outcome on housing before I became minister. It was discussed by various groups, and its importance for housing has been recognised, with discussions about what the outcomes will actually look like. Indeed, it is still under discussion at the moment. I am happy to write back to the committee about that, as it is important.

Data will be an important aspect of rent controls and of determining what comes through on a local basis, as well as nationally. That goes back to the point about the nuanced approach. What levels of investment are coming through for mid-market rent, build to rent and other forms of investment in the housing sector? I think that that is measurable.

Like for any bill, we need to evaluate how effective the measures have been—through rent controls and rent increases, and through the levels of investment being made. We will write back to the committee with more details about the national outcome.

I have engaged extensively with stakeholders since the bill was published, as I did before then. When I took over responsibility for the bill from Mr Harvie, I reviewed what had been previously proposed. It was key for me to set out a bill that still protected people, where they need protection, from rent increases. That is the main point of the bill, which we indicated in the programme for government last week. The need for investment is also important, whether that is in the mid-market rent sector or the build-to-rent sector. We are engaging with stakeholders extensively on that and will continue to do so. There is no doubt that we need investment in order to build homes.

As we know, Government funding, whether it is in the United Kingdom or Scotland, is extremely tight at the moment and institutional investment will not replace the need for it. Although I hope that Government funding will expand and grow, we need investment in the sector, whether that is in the mid-market rent or the build-to-rent sectors. In the programme for government, we talked about the commitment to growing investment fund MMR stock.

About nine months ago, I also set up a housing investment task force, which brought together investors, banks, local authorities and the likes of the Scottish National Investment Bank and the Scottish Futures Trust, to look at how we can get more money into the sector. Rent controls have been part of those discussions. There are also other ways in which we can try to get money into the sector, and I am committed to making sure that we get investment into housing.

I take on board what investors have said, but I hope that what we achieve through the bill will allow investment to come into Scotland. There has already been investment, but we need more. Lots of developments need an all-tenure approach. Sometimes that will be done through local government and funding will be provided by local authorities and registered social landlords, but we also need institutional investment for that. In the bill and through what we are proposing with rent controls, I hope that we can strike that balance.

I think that that problem is much broader than the private rented sector. The Construction Industry Training Board published a study six to nine months ago that broke Scotland down into 10 areas and identified the resources in those areas, including the workforce, operating companies and colleges. I continue to meet Graeme Dey to discuss how we fund colleges and construction courses. I have had further discussions with the CIH about how we professionalise the construction sector and ensure that those in it are as qualified as possible, and I asked the trade body to produce a paper on that, which we have recently received. We are working with the body on how we expand qualifications and are looking at what else needs to be done in the sector to ensure that it has enough qualified people and that it attracts them because, traditionally, the housing sector has not done that, but there are great opportunities for people.

As we know, there have been issues because of Brexit, which has reduced the size of the workforce. We need to ensure that we try to get people into the construction sector. The issue of visas for the sector has been raised with the UK Government. It is not just affecting housing. If we look at the growth in renewables, for example, having spoken to colleagues in that sector, I know that there is a real demand for construction work for that. We are looking at a number of solutions to try to ensure that the sector is up to the level that it needs to be at with recruitment and for future training. I think that the average age for people who are working in the construction sector is 60, or near enough. We cannot go on like that; if we look at the demographics, we see that we will run out of people. It is a challenge, but we are approaching it in different ways.

I think that we are looking at the first quarter of next year—that is the task force’s target. I am happy to write to the committee on that point. However, the minutes are online, so they can be looked at.

Correct me if I am wrong, but I understand that your report is due out at the end of October.

I would think that it would be around that time, or not too far off. Again, I am happy to come back to the committee when the amendments are lodged to have that discussion and take that further.

There are two ways to look at that. First, there would have to be data to back that up.

Secondly, it is the right of the minister to look at that and say whether they would impose rent controls in an area. If a local authority says that it wants to look at rent controls, the minister at the time can say that they do not agree with that, so the rent controls would not just come in. There is flexibility for the Government and the minister to look at that and say that they do not think that there is a case for rent controls at that particular time. The key thing is that it has to be backed up by data. There would be discussions—it is not something that would happen overnight. It would have to go out for broader consultation. The key thing is that the minister would have the right to say whether rent controls could be brought in, depending on the local circumstances at that particular time. A local authority might want to do it, but the minister might not agree and would have to give reasons for that. The ability to look at that goes both ways.

Again, I think that Yvette Sheppard talked about such circumstances. First, as she touched on, there would be an option for us to go back if we think that the data is not sufficient. If that is still the case when the data comes back, we would have to take it as an individual circumstance, but I think that the minister has the ability to do what you said. There are a number of points before we even get to that regarding whether the data that the authority provides backs up sufficiently what it proposes. That is where issues of broader local consideration come in.

I do not know whether Yvette wants to add anything other than what was added before. Again, there is the procedure of looking at the data that comes forward to work out whether we think that the data that the authority has collected is sufficient and sufficiently supports what it proposes.

It might be the other way round—the authority might come forward and say that it does or does not recommend a rent control area. There are different circumstances. I do not know whether Yvette wants to add anything to what she added before.

I will try to keep them short.

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.