Bill published for Scots private rented sector
The Scottish Government bill to reform the private rented housing sector has been introduced to the Scottish Parliament.
The Private Housing Tenancies (Scotland) Bill would replace the present fixed term short tenancy agreement with an open ended private residential tenancy, while limiting rent increases to one per year and providing for local authorities implementing rent controls in areas where there are "excessive" increases. Tenants would have to be given three months' notice of any increase.
Landlords will no longer have the ability to regain possession of their property simply because the tenancy has reached its end date, but will have to establish one of a number of grounds for repossession, including intention to sell or refurbish, lender repossession, use for themselves or a family member, rent arrears, breach of the tenancy agreement, criminal or antisocial behaviour, non-occupation by the tenant, or the landlord ceasing to be registered.
Notice periods will be linked to how long the tenant has lived in the property, and can be shortened in specified circumstances.
The rent control powers would involve a local authority applying to ministers to introduce local rent controls for sitting tenants in areas under rent pressure. Consultation with landlords and tenants would be part of this process, with ministers deciding on rent caps for a period of time not exceeding five years.
Scottish Government strategy is to grow and improve the private rented sector. In response to an action set out in the strategy, ministers set up an independent Tenancy Review Group which recommended a new tenancy. The introduction of the bill follows two full public consultations, which were undertaken as part of this process and received around 10,000 responses.
Housing Minister Margaret Burgess said: “The changes outlined in this bill will give tenants greater security and stability in their home and community. It will also give landlords reassurance that their tenants will treat their property as a long-term home, rather than somewhere temporary.
“The private rented sector is changing. It is now home to a growing number of people in Scotland, and we recognise there are some areas where rents are increasing significantly. It is right and responsible to give local authorities the ability to introduce rent controls in order to ease areas under pressure.
“The range of measures brought forward under this bill will ensure the private rented sector is better managed, simplified and successful, and creates a system that works for everyone.”
To help secure new investment in the private rented sector and help meet the demand for more homes, the Government has agreed to explore the development of a financial guarantee mechanism to stimulate private rented sector expansion in Scotland. Scotland's Chief Planner has also written to every local authority to encourage them to consider the role private rented sector homes can play in meeting housing need and demand in their areas.