Ministers propose private sector tenancy shakeup
Radical changes to landlords' and tenants' rights in the private rented sector are proposed in a new Scottish Government consultation published today.
New Tenancy for the Private Sector puts forward a new private tenancy in place of the prsent assured and short assured tenancy arrangements. It aims to balance the rights of tenants, landlords, lenders and investors when many landlords have become landlords because they were unable or reluctant to sell their property, the buy-to-let sector continues, and there is also the significant potential for, and growing interest from, new institutional investors in the sector.
Developed from the work and report findings of the Private Rented Sector Tenancy Review Group, set up by Ministers in September 2013, the proposals affect tenancy length, security of tenure, periods of notice and grounds for repossession, among other matters.
Landlords would have to offer a minimum tenancy of at least six months (though a tenant could request a shorter period), with no maximum prescribed. A tenancy could not "roll over" for less than the original term. The no-fault ground of repossession after six months would be removed, and the current 17 grounds for recovering possession by court order, some of them discretionary, would be replaced by eight grounds, all mandatory, including the landlord wanting to sell or move into the house.
Notice to quit will be linked to how long the tenant has lived in the property, though where there has been failure to pay rent, antisocial behaviour by the tenant or other breach of the agreement, it will always be the minimum 28 days. Tenants will have to give eight or four weeks' notice, depending whether they have been in the property more or less than six months.
There are no specific proposals on rent levels, but a comprehensive analysis of current levels will be published later this month and the paper invites views on action the Government should take.
Housing Minister Margaret Burgess said: “If tenants have more security in their tenure, they may feel more confident in asserting their rights and flagging any concerns about their rented property without fear of eviction. In addition to this, if tenants know they can only be asked to leave their home on certain specified grounds, they will have a greater feeling of security.
“But equally a new tenancy system provides an opportunity to improve the private rented sector for landlords. We can tackle some of the longstanding issues they face, like problems around recovering the possession of their property and rent arrears. These changes could give landlords more reassurance in the system."
She added: “Our vision is for Scotland’s private rented sector to be an attractive and affordable housing option for anyone who wishes to live in it.
“Reforming the tenancy system is an important part of achieving this vision. By creating a new and simplified system we will have better property management, while tenants and landlords will be provided with more clarity and understanding of what the tenancy agreement means for them.”
Click here to view the consultation. The deadline for responses is 28 December 2014.