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Private Rented Sector Legal Recap 2024

Private Rented Sector Legal Recap 2024

As we approach the end of 2024, it is useful to recap on the events of the last 12 months in the private rented sector in Scotland.

Key Changes

On 1 March 2024 new measures were added to the Repairing Standard such that existing duties were increased and/or clarified.  Here is a link to the Scottish Government guidance providing details of the  measures. Supporting documents - Repairing Standard: statutory guidance for private landlords - gov.scot

26 March 2024 saw the introduction of the Housing (Scotland) bill which proposed many significant changes to the private rented sector. In particular, a new system for rent control in certain areas,  limits on how often rent can increase during a tenancy, duties on the First-tier Tribunal for Scotland to consider delays to carrying out an eviction order, and new rights for tenants to request pets or make changes to the property.   We shall have to wait until next year to see what becomes of the bill following its Stage 2 process. 

31 March 2024 saw the expiry of the temporary measures introduced by the Cost of Living (Tenant Protection) (Scotland) Act 2022 signifying the end of the eviction moratorium and the “rent cap” as it was widely known.

On 1 April 2024 we had the introduction of the Rent Adjudication (Temporary Modifications) (Scotland) Regulations 2024  which moved away from open market rent to a new tapering method of rent determination.

On 31 October 2024, in response to feedback from stakeholders, the Housing Minister announced a proposed amendment to the Housing (Scotland) bill whereby the proposed rent control levels will be limited to the Consumer Price Index (CPI) rate of inflation plus 1% with a maximum cap of 6% annually. If approved, the rent cap will apply to rent increases during the term of the tenancy as well as in between tenancies and will only apply in areas where rent controls apply.

Please note that the Bill is yet to be passed by Parliament.

On the horizon in 2025

There have been significant changes to the private rented sector since 2020, not all of which have been welcome.  As we look ahead to 2025, it remains to be seen if a fair balance can be struck between the interests of tenants and the protection of landlords’ property rights.  Private landlords can expect:

  • The Scottish Government to consult on how rent control exemptions could be applied.
  • The Regulations that introduced the new tapering system for rent determination are scheduled to expire at the end of 31 March 2025. It is anticipated these provisions or similar will extend the tapering method beyond that date.

Authors

Claire Mullen