New residential tenancy reform in Scotland

Landlords will need to take note as new residential tenancy reform in Scotland is set to come into place by the end of this year.

First introduced in Scottish Parliament on October 7th 2015,the Private Housing (Tenancies) (Scotland) Bill was passed on March 17th 2016 and received Royal Assent the following April. Within the bill are regulations that are set to overhaul parameters of the Short Assured tenancy and the assured tenancy agreements, the most commonly used agreements in the private rented sector. Despite this major change, many landlords are unaware of the impending changes. There are a few notable differences between the structure of current tenancy agreements and those that will be acceptable going forward – so just how much do you know about how to design your tenancy agreements for 2018?

What are the differences?

There are a number of rules that will change once the Bill is implemented:

  • Open ended tenancies – which will continue indefinitely after the initial duration, until terminated by notice from the landlord on one of the prescribed grounds or notice from the tenant.
  • Landlord no longer has right to terminate just because the duration set out in the tenancy has ended. Minimum initial duration 6 months – but the prospective landlord and tenant can fix a shorter or longer initial duration.
  • New compulsory clauses and no notices require to be served by landlord before tenancy begins. Rents cannot be increased more than once per year – and tenant has a right to challenge if he considers that the proposed new rent is above market rate.
  • Rent controls can be imposed by the Scottish Ministers on certain areas, at the request of a local authority – if rents in those areas are so high that the local authority is coming under increasing pressure to provide housing or to subsidise the cost of housing

Contact us today to ensure you remain compliant as the new changes take effect.

For more information visit: http://www.gov.scot/Topics/Built-Environment/Housing/privaterent/government/Tenancy-Review