Scotland’s changing Private
Rented Sector
The new Private
Residential Tenancy
What’s changing in 2017?
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The Private Residential Tenancy
Rent Pressure Zones
Regulation of letting agents
All civil cases in the Private Rented Sector to go to the
Housing and Property Chamber of the First-tier
Tribunal.
• Improving standards in the Private Rented Sector
– Consultation on improving energy efficiency & broadening
the repairing standard
– Statutory guidance on landlord registration for local
authorities
Background and purpose of the
new tenancy
• Sector tripled in size between 1999 and 2015
– @700,000 people live in the sector
– @280,000 registered landlords
• To provide security, stability and predictability
for tenants, balanced by appropriate
safeguards for landlords, lenders and
investors.
Key features of the new tenancy
• A modern open-ended tenancy (no end date).
• 18 comprehensive and robust repossession
grounds.
• Rent can only be reviewed once a year, with 3
months written notice.
• A Scottish Government recommended model
tenancy agreement.
Improvements for landlords
• A streamlined and simpler process.
• New responsibilities for tenants
• 18 new, modernised grounds for eviction,
including new grounds for abandonment and
selling the let property.
• A simplified single eviction notice.
• In rent arrears cases, eviction action can be
taken sooner.
Tenant ending the tenancy
• 28 days notice in writing to end the tenancy
• Notice can only be given once the tenant is
living in the let property – it cannot be given
before the tenant moves in.
• Notice must be given freely and without
coercion.
Landlord ending the tenancy
• Tenants must be given at least 28 days notice
to leave.
• 84 days notice may be required if the tenant
has lived in the let property for more than six
months.
• Landlords must use a specific notice when
asking a tenant to leave – called a ‘Landlord’s
Notice To A Tenant To Leave’.
28 days notice
• Eviction grounds:
– Tenant is no longer occupying the let property
– Tenant has breached a term(s) of tenancy agreement
– Tenant is in arrears over 3 consecutive months on the date
you apply to the Tribunal for an eviction order
– Tenant has a relevant conviction
– Tenant has engaged in relevant anti-social behaviour
– Tenant associates with a person who has a relevant
conviction or has engaged in relevant antisocial behaviour.
Mandatory eviction grounds
• Landlord intends to sell the let property
• Let property to be sold by lender
• Landlord intends to refurbish the let property
• Landlord intends to live in the let property
• Landlord intends to use the let property for non-residential
purpose
• Let property required for religious worker (if property has
previously been used for this purpose)
• Tenant no longer occupying let property
• Tenant has a relevant criminal conviction
Discretionary eviction grounds
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Landlord's family member intends to live in the let property
Tenant no longer needs supported accommodation
Tenant has breached a term of the tenancy agreement
Tenant has engaged in relevant anti-social behaviour
Tenant has associated in the let property with someone who
has a relevant criminal conviction or engaged in relevant
antisocial behaviour
• Landlord has had their registration refused or revoked
• Landlord's HMO licence has been revoked
• An overcrowding statutory notice has been served on the
landlord
Eviction grounds that can be
mandatory or discretionary
• Tenant is in rent arrears over 3 consecutive months
‒ Mandatory if tenant still owes at least a month's rent by the
first day of the Tribunal hearing
‒ Discretionary if tenant owes less than a month's rent (or is no
longer in arrears) by the first day of the Tribunal hearing
• Tenant has stopped being — or has failed to become — an
employee of the landlord
‒ Mandatory if landlord applies for an eviction order within 12
months
‒ Discretionary if landlord applies for an eviction order after
more than 12 months
Rents
• Rents can increase no more than once per
year.
• Tenants must be given 3 months written
notice of any increase (using a certain form)
• Tenants can refer a perceived unreasonable
rent increases to a Rent Officer for rent
adjudication.
• The Rent Officer can vary the rent up or down.
Rent pressure zones (RPZs)
• Local authorities must evidence that rents are
– Rising too much;
– Causing undue hardship to tenants; and
– Increasing pressure on the authority’s housing services
• Ministers will have to be satisfied that the local authority
has evidenced the need for a RPZ and must consult key
stakeholders in the area before reaching a decision.
• Any cap set would be at least CPI+1% (could be higher) and
can last for up to 5 years.
• Landlords can apply to a Rent Officer for an additional
increase amount to reflect any property improvements
made.
Timescale for implementation
Jan to Mar 2017
– finalised model tenancy
agreement and 6 Notice Forms
following consultation.
April onwards
-stakeholder engagement &
awareness raising, developing
rent adjudication processes & rent
pressure zone guidance.
Late summer
– publish model tenancy &
prescribed Notice Forms
October
– regulations laid in Parliament
December onwards
– all new tenancies will be a
Private Residential Tenancy
Further information
Private Residential Tenancy
https://beta.gov.scot/policies/private-renting/
Letting Agent Registration
https://www.mygov.scot/letting-agent-registration/