21 December 2015

The Scottish Government has recently issued The Private Housing (Tenancies) (Scotland) Bill, which proposes substantial changes affecting the Private Rented Sector (PRS).

The Bill replaces short assured and assured tenancies with a new statutory tenancy to be known as a Scottish Private Rented Tenancy (SPRT). The Scottish Government claims that this new agreement is intended to simplify and improve the PRS and to create a system that works well for both Landlord and Tenant.

One topic under debate is the removal of the "no-fault" repossession clause which allows landlords to reclaim their property after a fixed term has ended. The intention is for this to be altered to the effect that landlords will only be able to repossess their property under a set of prescriptive grounds laid out in Schedule 3 of the Bill. This looks to be a key feature of the Bill despite being the subject of criticism from landlords and institutional investors.

The Bill also seeks to simplify notice periods to being one of two periods depending on the duration for which the tenancy has lasted (currently 4 weeks for less than 6 months and 12 weeks for more than six months).

Another controversial topic is the Bill’s intention to provide the Government with a degree of rent control, allowing them to impose restrictions on rent ‘hot spots’ where it is considered that rents are too high and for rent to increase only once a year, with three months’ notice.

This Bill is currently at Stage 1, the evidence gathering stage and bto aims to update you as the Bill progresses through Parliament.

Further information can be found on the Scottish Governments website: click here

Contact: Jane Steel Partner js@bto.co.uk T: 0141 221 8012