The Scottish Government website details the reasons behind the tenancy reform in specific detail, so for the avoidance of duplicating the entire content a summary of the proposal’s intentions are as follows:
- Removal of the “no fault” grounds for repossessions which is currently available to all Landlords of Short Assured Tenancies. At present Landlords can reclaim their property simply because the fixed term has ended. The consultation document proposes the removal of this right for Landlords.
- Proposals to reduced the number of grounds under which a landlord can repossess their property from the current 17 grounds to 8 grounds. All these grounds would be mandatory (there would be no requirement to satisfy any court or tribunal that it is reasonable to repossess where the terms of the ground are met). The proposed new grounds are:-(i) a landlord wants to sell the home;
(ii) mortgage Lender wants to sell the home;
(iii) landlord wants to move into the home;
(iv) landlord wants to carry out refurbishment;
(v) change to the use of the home;
(vi) the tenant has failed to pay 3 months’ rent;
(vii) the tenant is anti-social; and
(viii) the tenant has otherwise breached the Tenancy Agreement. - Proposed future tenancies cannot automatically “roll over” for a duration of less than the original period of Let. At present many landlords allow for the tenancy to roll over on a monthly basis after the initial period of the tenancy. If the proposal proceeds then landlords would no longer have the right to roll over tenancies on a monthly basis after the initial lease period expires.
- Proposed number of changes to notice periods which landlords and/or tenants must give to terminate the lease. In many cases the period of Notice would be shorter than is required under current legislation;
- Proposal to introduce a model Tenancy Agreement which would contain mandatory and discretionary clauses along with guidance that would require to be issued to all tenants in their tenant information pack.RentThe consultation document highlights the complex picture of rent setting across Scotland. The consultation does not make any specific proposals with regard to future rent controls, but does seek views on the current rent levels and what action, if any, the Scottish Government should take on rent levels in Scotland and what rent review conditions, if any, should now be considered.
Reading through the proposals, there are a few changes that caught our attention namely:
Grounds for repossession.
- Currently, when a fixed term tenancy has come to an end, the landlord is able to gain possession of the property without the need to give a reason to the tenant. This is referred to as a “No Fault” ground. Under the new proposals, the ability for the landlord to regain possession without reason would be removed. The landlord would need to prove one of the new mandatory grounds, of which there will be 8.
- Under the Housing (Scotland) Act 2014, all civil PRS cases will now be considered by the First Tier PRS Tribunal rather than a sheriff.
Introducing a change to periodic tenancies.
- The current Short Assured Tenancy allows for a tenancy term to become periodic i.e. rolling month by month, after the initial fixed term has ended. This process happens automatically.
- The new proposals would abolish the month by month period and have the agreement roll on for no more than a minimum term of that of the original agreement. So for example, you signed a tenant up to a 6 month let, at the end of the term, the periodic tenancy would revert to a further minimum of 6 months.
- Minimum term of a new tenancy.
- The proposals suggest that landlords must offer a minimum of 6 months however no maximum term has been suggested. Should the tenant only require a tenancy less than 6 months, they will have to make a specific request to the landlord. How they would make this request is a little unclear.
Notice to quit – ending the tenancy.
Currently landlords and tenants must give each other Notice to Quit of between 28 and 40 days or as per the tenancy agreement.
The proposal suggests that the Notice to Quit period will be linked to how long the tenant has lived in the property. Landlords will have to give tenants the following notice:
- Six months or less in the property = four weeks’ notice
- Over six months up to two years in the property = eight weeks’ notice
- Over two years up to five years in the property = 12 weeks’ notice
- Over five years in the property = 16 weeks’ notice
Have your say.
The full consultation (which is open for response until the end of December 2014) can be read at: Scottish Government Consultation