PRIVATE HOUSING (TENANCIES) BILL PUBLISHED IN SCOTLAND

The latest tenure reform bill for Scotland was published this month, and sets out the legislation required to follow through with proposals that increase the security of tenure for private tenants.

The Private Housing (Tenancies) Bill has been offered as the necessary steps required to provide more stability and predictability to those renting in the private rented sector (PRS). It is a bill that focuses on housing affordability and is a commitment to ensuring that all Scottish people have a ‘safe and warm place to stay’.

Although generally considered a step in the right direction in the protection of tenants, there have been certain concerns raised within the sector that investment in property may be directly affected as a result. Included in the bill are proposals to invest in house building though, and a promise to create a structure that allows both tenant and landlord to work in equal partnership throughout the tenancy, with a system that accommodates them both.

What this means in terms of the Private Housing (Tenancies) Bill is a streamlined system that removes the confusion of pre-tenancy notices, creates a more modern model for repossession and makes tenancy agreements accessible and easy to interpret. Tenants will have the security of knowing that the end date of their tenancy doesn’t necessarily mean an end to living in the property, and landlords that they have the ability to repossess should they intend to sell or move in. Everything is geared towards reassuring tenants that they have stability and that landlords have a tenant who considers their property a long term home.

Additional measures include a limit to rent increases to once a year, with three months’ notice as a minimum. Combined with this will be rent controls, giving local authorities the capability to ease the pressure on certain areas and readdress the balance of their local housing system. Housing Minister Margaret Burgess, the Scottish MP behind the bill, has declared that the changes to be implemented ‘will ensure the private rented sector is better managed, simplified and successful’, creating ‘a system that works for everyone.’

What worries opposition to the bill is that the private rented sector’s rapid growth has led to it accounting for 14% of all households in Scotland. Although security for tenants is a highly sought after change, there is also the need for balance so that landlords continue to invest in the scheme and provide housing for families across the country. One area that many feel will need clarification is the grounds for repossession, legislation that will need to be clearly set out to investors. Another is more transparency on how rental caps will be introduced, and how student tenancies will be dealt with in the same system.

As with all changes to legislation that are introduced in Scotland, letfirst make sure to fully understand, interpret and relay the information we obtain to our landlord partners. Should you feel worried or confused by the rules introduced in the Private Housing (Tenancies) Bill, or would simply like to find out more about how the changes will affect you and your property, then speak to us at letfirst for clarification and advice throughout the process.