Further private tenancy proposals published for views

A second set of proposals for a new legal regime for private rented housing, fleshing out some of the details of the prevous consultation, has been put out for views by the Scottish Government.

Published last October (click here for report), the proposals involve a new tenancy in place of the present assured and short assured tenancy arrangements, with different "roll over" rules and fewer grounds for repossession. The new paper takes account of feedback and analysis from the first consultation and addresses issues raised in response.

Despite concerns that it will undermine investment in the sector and make landlords more selective when choosing tenants, ministers are standing by their intention – backed by over 80% of respondents –  to give private tenants greater security, citing the extent to which the sector now provides long term housing for many people, including families with children. However they propose to add three further grounds for repossession, including abandonment of the tenancy and the fact that the landlord no longer employs the tenant. They also continue to support the introduction of a model tenancy agreement for all private sector lets.

Regarding the term of the tenancy, concession have been made to flexibility in that, if the tenant requests, it should be possible to enter a lease for less than the current six month minimum. It is also no longer proposed that, if not terminated, a tenancy should automatically be continued for not less than the original term: instead, once the initial period has expired, the tenancy would continue indefinitely, with both the tenant and landlord beng able to give notice to end it at any time, with a notice period depending on length of residence (and whether certain fault grounds apply), but not more than 12 weeks in the case of the landlord and eight weeks in the case of the tenant. Further detail is also given of how the proposed repossession grounds would work.

The previous consultation asked whether controls were needed on rent levels and rent reviews. Current thinking is against general controls on rent, but specific provisions being introduced to give tenants safeguards against unjustified and excessive increases – which could, for example, be used as a means to evict them – and greater predictability on when rents will increase. Rent reviews should take place no more than once every 12 months, and with at least 12 weeks' notice of a change in rent. If a tenant considers a proposed increase would take their rent well over rents charged for comparable properties in the area, they should be able to refer the increase for adjudication, for example to the First-tier Tribunal, which will take over jurisdiction in tenancy cases from the sheriff court.

A further question is asked whether specific measures may be justified to protect tenants from excessive increases in "hot-spot" areas.

Click here to view the consultation. The deadline for responses is 10 May 2015.