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

2. 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

3. 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.

4. 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.

5. 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.

6. 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.

7. 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’.

8. 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.

9. 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

10. 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

11. 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

12. 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.

13. 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.

14. 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

15. Further information Private Residential Tenancy
Letting Agent Registration