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A New Tenancy for the Private Rented Sector in Scotland

Thursday, 4th December, 2014

A NEW TENANCY FOR THE PRIVATE SECTOR IN SCOTLAND

In August  2014 a new tenancy was proposed and agreed for Scotland and is under consultation by the Scottish Government until the 28th December 2014. This consultation is still in an early draft and the opinion is the new tenancy will not be introduced until 2016 at the earliest.
 
To prepare for this and ensure we represent all our clients we have been reviewing this with ARLA (Association of Residential Letting Agent) the Scottish Government and attended a meeting with specialist solicitors and trade experts in Edinburgh last week to review all the current proposals and provide advice.
 
The current proposals will see the removal of the short assured tenancy as we know it and the introduction of a new tenancy and the proposals are:

Removal of no faults ground for repossession.
 
The proposals are to remove the discretional grounds for repossession and create 8 New mandatory grounds.
 
The grounds are:
1. Landlord wants to sell the home
2. Mortgage lender wants to sell the home
3. Landlord wants to move into the home
4. Refurbishment
5. Change the use of the home
6. Tenant fails to pay three months rental
7. Tenant is anti social.
8. Tenant has otherwise breached the tenancy agreement
While in an early stage full details of this proposals are not clear however it is our opinion that after the consultation period some grounds will be discretional. The main issue however is that under the current short assured tenancy the landlord can issue notice for various issues with the need to supply proof or evidence and the current proposals will make is more difficult for landlords to gain possession.

Change in the notice to quit.
 
 The notice to quit will be increased for tenants on the basis below 
1. Under 6 six month – 4 weeks notice, 
2. 6 months to 2 years – 8 week noti ce
3. 2 years to 5 years12 weeks notice
4. tenancies over five years 16 weeks notice.
However with the loss of the short assured tenancy it is proposed that the tenants duties to remove at the end of the agreed contractual lease will no longer exist. Under the current proposals the two month rolling clause will be removed so landlords can only issue notice every six months.
 
At Rentolease we believe that an equality of rights is required that will give confidence in assistance for both landlords and tenants and a greater security of tenure for tenants must come with a legal system which supports and enforces landlords right and which is fair, efficient and economic.
 
We are therefore urging all landlords to be involved with this consultation and follow the link below to complete with your views on the tenancy agreement, notice clauses and the lack of flexibility in the rolling clause for both tenants and landlord.
 
 






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