The Scottish Government has launched a consultation on a new type of tenancy for the private rented sector.
The aim is to give tenants better security of tenure.
Two proposals look particularly likely to be controversial – the possibility of rent controls, and scrapping the no-fault ground for repossession.
Under the latter, landlords can currently reclaim their property simply because the fixed term has ended.
This no-fault ground – often said in England to be a prime reason for giving landlords confidence to invest in the private rented sector – would be removed.
The paper also proposes that landlords would have to offer a minimum six months tenancy, but a tenant will be able to request a tenancy shorter than that.
Tenancies would not be able to roll over on a monthly basis after the initial term expired. Instead, they would have to roll over for a duration of at least the original tenancy agreement.
Notice to quit would be significantly lengthened in most cases. Currently, landlords and tenants must give each other notice to quit of between 28 and 40 days.
The consultation is proposing that landlords would have to give tenants: four weeks’ notice for tenants who had been in the property six months or less; eight weeks’ notice for tenants of between six months and two years; 12 weeks’ notice for tenants of between two and five years; and 16 weeks’ notice for tenants of over five years.
The paper also proposes reducing the number of grounds for possession from 17 to eight. All would be mandatory.
A tenant who has not paid three months’ rent, is anti-social or has otherwise breached the tenancy agreement, would be given 28 days’ notice to quit regardless of their length of tenure.
Tenants would be able to give landlords four weeks’ notice if they had lived in the property six months or less, and eight weeks’ notice if they have lived there longer.
On rent controls, the consultation is not specific but indicates concern over rising rents.
By the end of this month, the Scottish Government says it will publish a comprehensive set of data on rents across the country.
The consultation period runs until December 28.
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