Private Sector Tenancy Update

Following publication of the draft Regulations, our earlier blog discussed the expected continuation of the rent cap and eviction moratorium, which have been in place since October 2022.

Last week, the Scottish Parliament passed the Cost of Living (Tenant Protection) (Scotland) Act 2022 (Amendment of Expiry Dates and Rent Cap Modification) Regulations 2023 which will take effect from 1^st April 2023.

Therefore, it is now confirmed the eviction moratorium (in both the social and private rented sector) will remain in place until at least 30^th September 2023 (with scope to extend to 31 March 2024).  As before, landlords remain entitled to serve notice and raise eviction proceedings. The moratorium only delays the enforcement of eviction orders once granted and only applies to particular eviction grounds.

In relation to rent increases, from 1^st April 2023, the rent cap for private sector tenancies will increase from 0% to 3%. This will permit landlords to seek an increase in rent by up to 3% of the existing rental charge. Landlords experiencing increased property costs will also be able to apply to the rent officer for additional increases, which will now be capped at 6% of the current rent.  Please see our earlier blog for more details.

Updated prescribed forms have also been published, which landlords who seek to increase their rents should issue from 1^st April 2023. Whilst rent increase notices can be served from that date, increased rents will not be chargeable until expiry of the relevant notice period. Any increase notices served prior to 1^st April 2023 (whilst the permitted rate remains at 0%) will be invalid.

The updated forms can be accessed here.

If you require specific advice on the impact of the Regulations or clarification as to what form of rent increase notice to issue, please contact our team.