Private residential tenancies due for a shakeup
As part of its wider strategy for improving the residential private rented sector, the Scottish Government has been consulting on proposals to change the current system of assured tenancies and short assured tenancies. The aims are to improve security of tenure for tenants and also give safeguards for landlords, tenants and investors. In light of responses received to its first consultation, a second consultation is now published, with more focused proposals on the way forward.
It is clear from the majority responses to the first consultation that the "no-fault" ground for recovery of possession is to be scrapped. In effect this will do away with the short assured tenancy, and a new single Scottish private rented tenancy will be introduced. Under its provisions, if they want to recover possession, landlords will have to establish one of 11 mandatory grounds proposed.
The new grounds proposed are:
- landlord wants to sell the home;
- mortgage lender wants to sell the home;
- landlord or a family member wants to move into the home;
- landlord wants to carry out refurbishment;
- change to the use of the home;
- tenant has failed to pay three consecutive months’ rent (may be discretionary in some cases);
- tenant is antisocial (may be discretionary in some cases);
- tenant has otherwise breached the tenancy agreement (may be discretionary in some cases);
- abandonment by the tenant;
- tenant no longer employed by landlord; and
- home is required for a full time religious worker.
Other proposals that it seems likely will be adopted include:
- scrapping pre-tenancy notices;
- minimum initial period to be agreed, but it can be shorter than six months;
- new notice periods;
- a model tenancy agreement to be produced, with both mandatory and discretionary clauses;
- repossession cases to be heard by a first tier tribunal.
Links:
Analysis of first consultation responses
Second consultation (responses by 10 May 2015)