Scotland’s changing Private Rented Sector The new Private Residential Tenancy

What’s changing in 2017? The Private Residential Tenancy Rent Pressure Zones Regulation of letting agents All civil cases in the Private Rented Sector to go to the Housing and Property Chamber of the First-tier Tribunal. Improving standards in the Private Rented Sector Consultation on improving energy efficiency & broadening the repairing standard Statutory guidance on landlord registration for local authorities

Background and purpose of the new tenancy Sector tripled in size between 1999 and 2015 @700,000 people live in the sector @280,000 registered landlords To provide security, stability and predictability for tenants, balanced by appropriate safeguards for landlords, lenders and investors.

Key features of the new tenancy A modern open-ended tenancy (no end date). 18 comprehensive and robust repossession grounds. Rent can only be reviewed once a year, with 3 months written notice. A Scottish Government recommended model tenancy agreement.

Improvements for landlords A streamlined and simpler process. New responsibilities for tenants 18 new, modernised grounds for eviction, including new grounds for abandonment and selling the let property. A simplified single eviction notice. In rent arrears cases, eviction action can be taken sooner.

Tenant ending the tenancy 28 days notice in writing to end the tenancy Notice can only be given once the tenant is living in the let property – it cannot be given before the tenant moves in. Notice must be given freely and without coercion.

Landlord ending the tenancy Tenants must be given at least 28 days notice to leave. 84 days notice may be required if the tenant has lived in the let property for more than six months. Landlords must use a specific notice when asking a tenant to leave – called a ‘Landlord’s Notice To A Tenant To Leave’.

28 days notice Eviction grounds: Tenant is no longer occupying the let property Tenant has breached a term(s) of tenancy agreement Tenant is in arrears over 3 consecutive months on the date you apply to the Tribunal for an eviction order Tenant has a relevant conviction Tenant has engaged in relevant anti-social behaviour Tenant associates with a person who has a relevant conviction or has engaged in relevant antisocial behaviour.

Mandatory eviction grounds Landlord intends to sell the let property Let property to be sold by lender Landlord intends to refurbish the let property Landlord intends to live in the let property Landlord intends to use the let property for non-residential purpose Let property required for religious worker (if property has previously been used for this purpose) Tenant no longer occupying let property Tenant has a relevant criminal conviction

Discretionary eviction grounds Landlord's family member intends to live in the let property Tenant no longer needs supported accommodation Tenant has breached a term of the tenancy agreement Tenant has engaged in relevant anti-social behaviour Tenant has associated in the let property with someone who has a relevant criminal conviction or engaged in relevant antisocial behaviour Landlord has had their registration refused or revoked Landlord's HMO licence has been revoked An overcrowding statutory notice has been served on the landlord

Eviction grounds that can be mandatory or discretionary Tenant is in rent arrears over 3 consecutive months Mandatory if tenant still owes at least a month's rent by the first day of the Tribunal hearing Discretionary if tenant owes less than a month's rent (or is no longer in arrears) by the first day of the Tribunal hearing Tenant has stopped being — or has failed to become — an employee of the landlord Mandatory if landlord applies for an eviction order within 12 months Discretionary if landlord applies for an eviction order after more than 12 months

Rents Rents can increase no more than once per year. Tenants must be given 3 months written notice of any increase (using a certain form) Tenants can refer a perceived unreasonable rent increases to a Rent Officer for rent adjudication. The Rent Officer can vary the rent up or down.

Rent pressure zones (RPZs) Local authorities must evidence that rents are Rising too much; Causing undue hardship to tenants; and Increasing pressure on the authority’s housing services Ministers will have to be satisfied that the local authority has evidenced the need for a RPZ and must consult key stakeholders in the area before reaching a decision. Any cap set would be at least CPI+1% (could be higher) and can last for up to 5 years. Landlords can apply to a Rent Officer for an additional increase amount to reflect any property improvements made.

Timescale for implementation Jan to Mar 2017 April onwards Late summer October December onwards – finalised model tenancy agreement and 6 Notice Forms following consultation. -stakeholder engagement & awareness raising, developing rent adjudication processes & rent pressure zone guidance. – publish model tenancy & prescribed Notice Forms – regulations laid in Parliament – all new tenancies will be a Private Residential Tenancy

Further information Private Residential Tenancy https://beta.gov.scot/policies/private-renting/ Letting Agent Registration https://www.mygov.scot/letting-agent-registration/