The Scottish Government has launched a consultation on proposed reforms to Private Rented Sector tenancies' in Scotland.

The consultation document proposes the most fundamental change to the private sector tenancy regime in Scotland since the introduction of Assured and Short Assured Tenancies in 1988.The proposals are wide reaching and could have a fundamental impact on the day-to-day operations of the Private Rented Sector throughout Scotland.

The stated aims of the proposed reforms are to improve security of tenure for tenants whilst giving suitable safeguards for landlords, tenants and investors.

Some of the key proposals include:-

(a)  'removal of the no fault' grounds for repossessions which is currently available to all landlords of Short Assured Tenancies. At present landlords can reclaim their property simply because the fixed term has ended.  The consultation document proposes the removal of this right for landlords;

(b) the consultation proposes reducing the number of grounds under which a landlord can repossess their property from the current 17 grounds to 8 grounds. All these grounds would be mandatory (there would be no requirement to satisfy any court or tribunal that it is reasonable to repossess where the terms of the ground are met). The proposed new grounds are:-

(i) a landlord wants to sell the home;
(ii) mortgage Lender wants to sell the home;
(iii) landlord wants to move into the home;
(iv) landlord wants to carry out refurbishment;
(v) change to the use of the home;
(vi) the tenant has failed to pay 3 months? rent;
(vii) the tenant is anti-social; and
(viii) the tenant has otherwise breached the Tenancy Agreement.

(c) The consultation proposes that in future tenancies cannot automatically 'roll over' for a duration of less than the original period of Let. At present many landlords allow for the tenancy to roll over on a monthly basis after the initial period of the tenancy. If the proposal proceeds then landlords would no longer have the right to roll over tenancies on a monthly basis after the initial lease period expires;

(d) the consultation proposes a number of changes to notice periods which landlords and/or tenants must give to terminate the lease. In many cases the period of Notice would be shorter than is required under current legislation;

(e) the consultation proposes to introduce a model Tenancy Agreement which would contain mandatory and discretionary clauses along with guidance that would require to be issued to all tenants in their tenant information pack.

Rent
The consultation document highlights the complex picture of rent setting across Scotland. The consultation does not make any specific proposals with regard to future rent controls, but does seek views on the current rent levels and what action, if any, the Scottish Government should take on rent levels in Scotland and what rent review conditions, if any, should now be considered.

For more information or advice please contact our private rented sector team.