Rent controls and abolition of ‘no fault’ ground for possession confirmed in Scottish Bill

The Scottish Government has published its new housing Bill which will introduce rent controls and abolish the “no fault” ground for repossession.

The Private Housing (Tenancies) (Scotland) Bill will mean, if passed, that tenants can no longer be asked to leave simply because the tenancy has ended.

Landlords will not be able to reclaim their properties on a “no fault” basis but will have to use one of the other grounds for possession.

In addition, rent increases will be limited to only one per year, with three months’ notice.

The Bill also gives local councils the right to implement rent controls in certain areas.

These would be where there have been “excessive” rises in rents, and where there is concern about the effect on tenants and the wider housing market.

A local authority would be able to apply for rent controls, with ministers making the decision. Consultation with landlords and tenants would be part of this process, with ministers deciding on rent caps for a period of up to five years.

Housing minister Margaret Burgess said: “The changes outlined in this Bill will give tenants greater security and stability in their home and community.

“It will also give landlords reassurance that their tenants will treat their property as a long-term home, rather than somewhere temporary.

“The private rented sector is changing. It is now home to a growing number of people in Scotland, and we recognise there are some areas where rents are increasing significantly. It is right and responsible to give local authorities the ability to introduce rent controls in order to ease areas under pressure.

“The range of measures brought forward under this bill will ensure the private rented sector is better managed, simplified and successful, and creates a system that works for everyone.”

The new grounds for possession, broadly, are:

• Landlord intends to sell.
• Property to be sold by lender.
• Landlord intends to refurbish.
• Landlord or family member intends to live in property.
• Landlord intends to use for non-residential purpose.
• Property required for religious purpose.
• No longer an employee.
• No longer a student (staying in student accommodation).
• Not occupying let property.
• Breach of tenancy agreement.
• Rent arrears.
• Criminal behaviour.
• Anti-social behaviour.
• Landlord has ceased to be registered.
• HMO licence has been revoked.
• Overcrowding statutory notice.

The new Bill is supported by the likes of housing charities Shelter and Crisis, but landlords and agents have voiced grave concerns.

Scottish agent Rettie said that introducing rent controls, even if relatively “soft”, will be seen as the thin end of the wedge.

Director of research Dr John Boyle said this would lead to disinvestment in the sector. He also criticised the Scottish Government for introducing a Bill not based on proper evidence.

Originally posted here.

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