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Legislation
Scottish Property – Cairn Legislation Update ( 9th November 2022 )
Scottish Property – Cairn Legislation Update ( 9th November 2022 ) Cost of Living (Tenant Protection) (Scotland) Act 2022 Following our series of blogs on the rent increase and eviction ban, we can confirm that the Cost of Living (Tenant Protection) (Scotland) Act came into force on 28 October 2022. The legislation will be in force until at least 31 March 2023 and can be extended (with parliament agreement) to 30 September 2023 and again to March 2024. Rent increase ban Under the current legislation, any rent increase notices served on or after 6 September 2022 fall under the permitted rate cap of 0%. Meaning a landlord cannot increase a tenants rent on or after this date until the rate cap is either increased or removed. The permitted rate cap does not affect increase notices issued to tenants before 6 September 2022, these are still enforceable under the legislation. There are some options still available to landlords: Landlords can increase the rent between tenancies. Landlords can still increase the rent for Short Assured / Assured tenancies which have a rent increase clause within the lease. The cap does not affect rent increases for these tenancies, regardless of the date the increase was served if there is a rent increase clause within the contract. Landlords can apply to the Rent Service Scotland for an increase up to 3% to cover increases in the ‘prescribed property costs’. Prescribed property costs Prescribed property costs per the legislation are: The interest payable on any mortgage or standard security over the rented property. Any insurance premium you pay which relates to offering the property for rent. For example, landlords’ insurance. Increases in premiums for building or property insurance are not included. Any service charges related to the rented property that the tenant pays towards as part of their rent if this was agreed between you and the tenant as part of the terms of the tenancy. Landlords can apply to Rent Service Scotland to increase the tenants rent to recover up to 50% of the increase to the prescribed property costs above. This application can only be for prescribed costs in the last 6 months prior to the application being made. If Rent Service Scotland is assured that the landlord’s prescribed property costs have increased within the last 6 months and that the increase proposed by the landlord represents no more than 50% of those costs, the rent officer must order a rent increase. The maximum increase in rent permitted through this process is 3%. To apply to increase the rent landlords must complete the government application form, which can be found here: https://www.gov.scot/publications/rent-cap-private-landlord-guidance/documents/ Landlords are required to notify the tenant of their intention to increase the rent before the landlord form is submitted to Rent Service Scotland. The government has also provided wording for this notification which can be found here: https://www.gov.scot/publications/rent-cap-private-landlord-guidance/documents/ The rent increase comes into force 3 months and a day after the landlord issued notice to the tenants of the proposed increase. This legislation has also been written into the Private Residential Tenancy agreement (PRT). Eviction ban Under the legislation, the issuing of notices to end the tenancy is not banned. Landlords are still free to serve notice to end the tenancy if they wish to do so. In most cases, tenants vacate the property during the notice period, it is only when the tenant does not vacate the property that the restrictions may come into effect. If the tenant doesn’t leave at the end of the notice period, the landlord can still apply to the Housing and Property Chamber, First-tier Tribunal for Scotland for a formal eviction order. If and when the eviction order is granted, the legislation places restrictions on Sheriff Officers from enforcing this order and recovering the property for the landlord. The legislation states that evictions cannot be enforced until restrictions are lifted, or the order has been in force for 6 months, whichever is sooner. There are some exceptions to this restriction, which are detailed below. Exempt eviction grounds: The tenant is not occupying the Let Property as his or her only or principal home The tenant has a relevant criminal conviction The tenant has engaged in relevant antisocial behaviour The tenant has associated with a person who has a relevant conviction or has engaged in antisocial behaviour Let Property to be sold by the mortgage lender. The tenancy was granted to an employee and the Tenant is no longer an employee. New grounds have also been included in the PRT under the legislation which are exempt: The Landlord intends to sell the Let Property to alleviate financial hardship. The Landlord intends to live in the Let Property to alleviate financial hardship. The Tenant is in substantial rent arrears (equivalent to 6 months’ worth of rent). The above grounds also apply to Short Assured and Assured tenancy agreements, however the notice periods differ slightly per the terms of the lease. Landlords need to provide evidence to the Tribunal of the eviction ground being used / demonstrate their financial hardship. These could include: a letter of advice from an approved money advisor, local authority debt advice service, independent financial advisor or from a chartered accountant. an ‘affidavit’ stating that you are intending to sell the let property or to live in the let property. This is a particular type of statement which is sworn under oath There are other types of evidence which landlords can provide to the Tribunal to demonstrate financial hardship, such as: Information detailing your income Details of the things you are responsible for paying Any outstanding debts or payments which you need to make Information to show that you are not able to cover the essential things you have to pay for because you do not have enough money coming in Information to show that you are often unable to make any essential payments or repayments which you are required to make Information to show that you are having to borrow money in order to pay your bills Information to show that you are only able to make essential payments by selling things you own Information to show that you are on a formal debt management plan Information to show that you are bankrupt Information to show that you are unable to meet the costs of maintaining or repairing the let property to meet the standards you are required by law to meet as a landlord The Tribunal will consider all relevant information in the case, including any evidence or information provided to them, and decide whether it is reasonable to evict the tenant. For any eviction applications submitted to the Tribunal before 28 October 2022, these should still be heard as normal, and the eviction should be enforceable under the legislation as long as notice was served on the tenant prior to 6 September 2022. Our qualified and knowledgeable staff at Cairn are always on hand to support landlords with any queries they may have regarding rent increases or evictions during this ban. With the ever changing legislation being implemented on private residential landlords, it is imperative that landlords employ reputable and qualified agents to manage their properties in Scotland. This will ensure legislation is being followed and that the most recent and correct advice on how to manage tenancies is being received. At Cairn, we have fully qualified and friendly staff waiting to assist landlords with management of their properties, we also have an in-house Compliance Manager who is both ARLA and LETWELL qualified to assist landlords with more difficult tenancy issues. Please do not hesitate to contact us to obtain further information on our management services.
Meet The Team
Meet The Team – (Fiona Herbin – Associate Director)
Meet The Team – (Fiona Herbin – Associate Director) Describe your role in one sentence at Cairn? As Associate Director, I oversee all letting valuations for the Glasgow Branch; meeting new clients, helping our existing landlords grow their portfolios whilst also hitting our company monthly/annual targets! What is your proudest business achievement/moment? Getting promoted to Associate Director from Branch Manager has been a career highlight. Having previously managed the team, I am also very proud of our Edinburgh division’s outstanding performance and continual growth since it’s 2019 acquisition. How has your industry changed in the last decade? We’ve all felt the impact of legislation increases and the introduction of Private Residential Tenancy. These challenges have had a massive impact on Letting agencies and Landlords but have ultimately been in our client’s best interests. Give us an interesting fact about yourself. I am a keen traveller, visiting over 26 countries in the last 10 years including a three month sabbatical from Cairn to travel. What is the best piece of business advice you have been given ? Always challenge yourself and put yourself forward for opportunities. What advice would you give your 18 year old self? Wear sunscreen and take care of those teeth! Who are your heroes inside and outside of business ? My business hero is Yvon Chouinard, the owner of Patagonia who donated his entire company to fight climate change. Outside of business, it has to be my husband who safely delivered our baby boy at home under the guidance of a 999 operator on speakerphone! What qualities do you most admire in others ? Integrity and enthusiasm go a long way in my book. How do you unwind out of work There’s no better way to unwind than snuggling up to my chihuahua on the sofa and binging a crime drama series! Favourite book/CD/DVD? I don’t get to read as often as I’d like, but always enjoy a good thriller. Lewis Capaldi is currently on repeat on my Spotify and Home Alone 2: Lost In New York is a classic I love to rewatch every year. Where is your favourite place in Scotland? My family love to visit St Andrews, especially at Christmas time.
Meet The Team
Meet the Team ( Gemma Waters – Compliance & Legislation Manager )
Meet the Team ( Gemma Waters – Compliance & Legislation Manager ) Describe your role in one sentence at Cairn? I am responsible for ensuring our office, staff and clients meet the ever changing compliance and legislation within the letting industry. I also support both branches to ensure that our offices operate efficiently and implement procedures and systems to allow staff professional growth and development. What is your proudest business achievement? Obtaining my ARLA and CIH qualifications How has your industry changed in the last decade? The property industry has changed massively over the last decade. For lettings, the most notable change was the introduction of the PRT which removed the old SAT style of lease agreement and placed more restrictions on landlords. Landlords are still feeling the aftermath of the pandemic with changes to evictions, and more recent changes in legislation to rent increases. What’s a typical day for you? A typical day would involve checking the Scottish Association of Landlords and ARLA websites for changes to legislation, undertaking staff training, procedural updates, implementing new systems and acting as a general support to all members of staff. Give us an interesting fact about yourself? I am very passionate about animals and have volunteered for several animal charities over the years including the SSPCA. What advice would you give your 18 year old self? You get what you work for. Keep working hard, stay focused and most importantly have fun doing it! Who are your hero’s inside and outside of business? My personal hero is my gran who is the kindest, strong, and most loving women I have ever met. In business, I admire those who go over and above, have a strong work ethic and who take pride in what they do. What qualities do you most admire in others? I admire people who are selfless, honest, hard working and loyal. How do you unwind out of work? Family time, family time and more family time! Favourite book/CD/DVD? ‘All I see is you’ is my favourite book (at the moment). Tennessee Whiskey for my song and Pulp Fiction / The First Wives Club for my movie (depending on my mood!). Where is your favourite place in Scotland? Rothesay, this was a great favourite for family holidays when I was little and holds a lot of precious memories for me.
Meet The Team
Meet the Team ( David Rowand – Managing Director )
Meet The Team – David Rowand – Managing Director Describe your role in one sentence your role at Cairn. – As MD, I sleep eat and breathe Cairn as the owner you never switch off, my role is to ensure the business is meeting its strategic targets set out by the management team. What is your proudest business achievement ? – Proudest business achievement is surviving the financial crisis in 2008. How has the industry changed in the last decade ? – I think for all SME’s it has been a turbulent time between covid and government changes and continually biased landlord legislation it has not been easy. Give us an interesting fact about yourself ? – I am a keen rugby enthusiast though some people may not find that interesting. I played for Scotland at school level but had a head injury scree-running at school and ended up in hospital for a month, I did return to rugby thereafter, but a further knee injury put paid to my professional career. What is the best piece of business advice you have been given ? – always employ people who are better than you. What advice would you give your 18 year old self ? – I would tell myself to slow down it’s not a race it’s a marathon. Who are your hero’s in and out of business ? – Doddie Weir is real inspiration to me he has been so courageous in his fight with MND and the fact he has highlighted this awful illness is fantastic. What qualities do you most admire in others ? – Selfless caring people who go the extra mile to help to someone. How do you unwind at work ? – I truly unwind when I play golf or when I am watching rugby. Favourite Book / CD/DVD – Any easy holiday read / Anything Soul / Funk / Bond Where is your favourite place in Scotland ? – I love Dumfries & Galloway and I have a family connection to the area which makes it even more special.
Buy To Let, Glasgow, Investment, Property Finance
Property Investment In Glasgow: Where To Spend Your Money in 2025
Interested in property investment in Glasgow? Here Cairn profiles the most popular areas of the city. Investing in buy-to-let in Glasgow is a no-brainer. A bustling, modern European city with a vibrant student population, a thriving economy, vital transport links, and huge rental demand, Scotland’s largest city represents a golden opportunity for property investors. But where should you spend your money in 2025? Let’s explore Glasgow in a little more detail. Why Invest in Glasgow Property? Glasgow Fast Facts Population: 635,640 (2024) House Price Avg: £186,000 (2024) Monthly Rent Avg: £1190 (2024) Rental Yield Avg: 5% (the UK average is 3.6%) Around a third of Scotland’s entire population lives in or around Glasgow. The city itself has a population of 635,640 (as of 2024), while the Greater Glasgow area is home to around 1.8 million. The sheer number of people in this part of Scotland makes property investment in Glasgow very attractive — and for two reasons in particular: 1. There’s a Huge Demand for Rental Properties According to research by Admiral, demand for rental properties in Glasgow far outstrips supply, with 998 prospective renters for every 100 available rental properties. Only Salford (1,076 people for every 100 rental properties) has a higher tenant demand in the UK. For comparison, Edinburgh came fourth in Admiral’s list, with 535 potential renters for every 100 available properties. This demand has seen the average Glasgow rent climb to £1190 PCM, while the average time to let is only 31 days. Bottom line? If you invest in a buy-to-let property in Glasgow, it probably won’t be empty for very long. 2. Business is Booming Glasgow isn’t just home to almost two million people. It’s also the beating heart of Scotland’s economy. According to Invest Glasgow, the city region generates 34% of all Scottish jobs and plays host to one of the fastest-growing technology investment hubs in the UK. Beyond that, leading industries include public health, hotels, restaurants, distribution, banking & finance, insurance, transport, and communication. Glasgow’s workforce is diverse, highly educated, and bringing home, on average, £30,000 a year. So, not only is there a huge demand for rental properties in Glasgow, that demand is being driven by desirable, professional tenants. Property Investment In Glasgow — Area By Area Wondering where to invest in Glasgow buy-to-let property? Here are 5 key areas worth exploring. 1. The City Centre Average house price: £214,590 Home to both traditional properties and modern new-builds, Glasgow’s city centre boasts plenty of choices, no matter your target market. Although many people working in the centre prefer to live outside of its boundaries, many more call it home. This is especially true of Glasgow’s student population. The fashionable Merchant City is worth a look if you’re hoping to rent to young professionals, while areas like Townhead, Charing Cross, and Cowcaddens are all within walking and public transport distance of the city’s universities. 2. The West End Average house price: £286,000 The best West End estate agents rarely have trouble letting properties in this stunning part of the city. Popular with young families thanks to its green space, young professionals thanks to its transport links, and students, thanks to its bars, cafes, and proximity to Glasgow University, demand for rental properties here is through the roof. Of course, this level of demand has a knock-on effect, with many of the properties in the West End among the most expensive in Glasgow. But if you find something that works for your budget, you could be onto a winner. Consider areas like Hillhead, Kelvinside, Dowanhill, Yorkhill, and Partick for any of the target markets mentioned above. 3. The East End Average house price: £188,000 Home to Dennistoun, recently named the 8th coolest neighbourhood in the world (the WORLD!), the East End of Glasgow is chock-full of character. From the iconic red sandstone tenements to thriving independent businesses, the East of the city is particularly popular with students and young families. Thanks to regeneration activities brought about by the 2014 Commonwealth Games, the East End is beginning to catch up with other parts of the city after years of neglect. Yet it remains cheaper than the city centre and the West End, so you could nab yourself a buy-to-let bargain. 4. The Southside Average house price: £219,000 When you venture south of the River Clyde, you’ll find a mixed bag of property investment opportunities. A traditionally industrial area of the city, riverside regeneration has brought a modern feel to many areas, while others remain affected by social problems. Areas like Govan, Ibrox, and the Gorbals offer a variety of affordable property types boosted by vital transport links. Meanwhile, the likes of Shawlands, Newlands, Queens Park, and Langside have a trendy vibe popular with young families and professionals. These properties are pricier, but always in demand. 5. Bearsden and Milngavie Average House Price Bearsden: £437,258 Average House Price Milngavie: £356,551 Although technically in Greater Glasgow, Bearsden (G61) and neighbouring Milngavie (G62) remain popular with families and professionals alike. With great schools and handy transport links, these commuter towns offer a divine slice of Scottish suburbia, while also linking the outskirts of the city to Loch Lomond, the Trossachs, and the West Highlands. Larger houses in these parts tend to be more expensive than in other parts of Glasgow, although several affordable housing developments have been introduced over the past few years. Cairn: Property Investment In Glasgow Whether you’re looking east, west, south, or central, you’ll have plenty of choice in Glasgow. Do you want to learn more about investing in buy-to-let properties in the city? Get in touch with our property investment experts today. We’re here to help!
Edinburgh, Landlords, Letting
Edinburgh Letting: New Landlords, Read This
Discover everything you need to know about Edinburgh letting for first-time landlords. Some people become landlords by accident. They move in with a partner and want to hang on to their property. Or they relocate for work and don’t want to sell their home. So, they decide to rent it out. Others are more deliberate, viewing buy-to-let as a sensible long-term investment. No matter how you’ve arrived at your decision to let out your Edinburgh property for the first time, this post is for you. Here, we lay out the steps you need to take before you become a landlord, and what you need to do once you’ve found your tenants. New to Edinburgh letting? What you need to do before renting out your home Before you even contemplate putting your home up for rent, you need to make sure your mortgage lender allows it. If you have a standard residential mortgage, you’ll have to ask for “consent to let,” which is where your lender will give you permission to rent out your property with a residential mortgage. This is usually for a set amount of time. Otherwise, you’ll need to switch to a buy-to-let mortgage. If you don’t have a BTL mortgage and you try to rent your property on a residential mortgage without consent to let, you run the risk of breaching your contract. And if that happens, it could result in your lender demanding instant repayment of the full mortgage balance! Once you have the mortgage sorted, the next step is to amend your insurance policy to include landlord insurance. Having tenants living in your property can affect your liability. You must also register as a private landlord with the Scottish Landlord Register. Everyone named on the title deeds must do so. Failure to register is a criminal offence and can result in a fine. You can register as a landlord here. Finally, if you’re planning on renting to three or more unrelated people, this will be classed as a house of multiple occupancy (HMO). HMOs require an additional licence. Learn more about Edinburgh HMOs here. Found your tenants? Here’s what you need to do next First, it’s important to note that there’s a lot of responsibility that comes with being a landlord. If you’d rather take a hands-off approach, working with a local property management company (like Cairn) can be a big help. Learn more about our management services here. However, if you want to try your hand at being a DIY landlord, there are several things you’ll need to do: Conduct all viewings of the property Get references for all tenants Take deposits and move funds from tenants Ensure all compliance is in place for the tenants’ move-in (safety certificates/maintenance/cleaning) Conduct inventory Create the correct tenancy agreement and ensure all parties sign it Meet with your tenants and give them a tour of the property. Show them how to switch off the electricity, how to reset a blown fuse, and how to switch off the water supply in an emergency — plus anything else specific to your property. Once you’ve received your tenant’s deposit, you’ll need to place it into a Tenancy Deposit Scheme within 30 working days of the start of the tenancy. You should also notify your tenant in writing which scheme is holding their deposit. Finally, you should notify the local authority and the property’s utility providers that a tenant is moving in (and that you no longer live there) so that the Council Tax account and energy accounts can be updated. You should also let your tenant know that you’ve done this. Of course, your responsibilities as a landlord don’t end there. Throughout the tenancy, you must: Respond to reactive maintenance/emergency out-of-hour issues (weekends and evenings) Conduct periodic inspections of the property Handle tenant complaints Handle neighbour complaints Collect rent/chase rent if in arrears And at the end of the tenancy, you must: Conduct a move-out inspection Handle deposit deductions/deposit disputes Re-advertise the property and start the process all over again If this seems like too much to handle, we have friendly and qualified staff here at Cairn ready to help you with the management of your property. Whether it was accidental or on purpose, if you’re entering the world of Edinburgh letting as a landlord, Cairn can help. We can look after everything to make sure you remain compliant and your tenant enjoys a safe and happy experience. Contact us here to learn more.
Legislation
Compliance Update – Electrical Installation Condition Reports
Compliance Update – Electrical Installation Condition Reports On 28th March 2022, changes were made to the wiring regulations that electrical inspectors must follow when conducting electrical installation condition reports (EICR’s). This change falls under ‘Amendment 2’ of the 18th Edition of the Wiring Regulations, BS7671:2018: https://www.niceic.com/18th-part-2 Changes were implemented originally with a 6-month grace period and became mandatory on 28th September 2022. These mandatory changes impact the way in which electricians code items during an EICR inspection. The two most notable changes are: All consumer units in every property must have Surge Protection Devices (SPD) installed. SPD’s provide protection against sudden spikes in voltage known as transient over-voltages. They safeguard the electrical installation from this, which consists of the consumer unit, wiring and accessories. SPD’s also provide protection to vulnerable equipment with sensitive electronic circuitry, such as computers, fire fighting systems and emergency lighting. Arc Fault Detection Devices (AFDDs) must now be installed in higher risk residential buildings, including: HMOs High rise flats Care homes Other properties where there is an increased risk of fire The AFDD is a circuit breaker which uses microprocessors to identify the presence of dangerous electrical arcs and disconnect the circuit affected. They are installed onto the consumer unit and are more sensitive than conventional circuit protection devices. As a result of this change to regulations, landlords may now note that their EICR checks are coming back as ‘unsatisfactory’ if the consumer unit fails and needs replaced, as all consumer units now require the appropriate SPD to be present. Any consumer units installed without the appropriate SPD would be classified as ‘non-compliant’, therefore it is mandatory that these works are undertaken if noted on the EICR. Similarly, the electrician will determine if the property is ‘higher risk’ (such as an HMO) and may mark the EICR certificate as ‘unsatisfactory’ because an AFDD is required as another level of protection. It is again mandatory that these works are undertaken if noted on the EICR. We appreciate that this could result in quite substantial costs for landlords to comply, therefore Cairn is working hard in the background to get the best deals on cost possible for our landlords with our approved and qualified contractors. Please be assured that you are in the best hands, however, should you have any questions regarding this, please do not hesitate to contact our friendly and qualified letting team, who will be more than happy to assist. Gemma Waters ( MARLA ) Operations, Compliance & Training Manager 18th October 2022
Meet The Team
Meet the Team ( Paul Shields – Finance Director )
Meet The Team – Paul Shields – Finance Director Describe your role in one sentence at Cairn? I am responsible for the company’s long-term financial health and growth. I also look to establish strategies that will earn profits, oversee accounting operations, and produce accurate income and expenditure reports for the other Directors. What is your proudest business achievement? Helping steady our business after the financial crisis in 2008. The property sector went through a very turbulent time back then, but we managed to steer through the difficulty and come out the other side stronger than ever. How has your industry changed in the last decade? The Property industry has changed dramatically over the last 10 years. For letting there has been numerous new letting legislation changes introduced which in the main have been good and have taken most of the rogue landlords and agents out the market. For Sales, with soaring house prices over the last decade, it has made it almost impossible for first time buyers to get on the property ladder. Give us an interesting fact about yourself? Before my hectic family life, I used to write short fictional stories. Hopefully one day I’ll get back to it once family life settles down. What is the best piece of business advice you have been given? When business opportunities come your way, always say yes! Then worry about how to do it later. What advice would you give your 18 year old self? Always remember that there is no failure. There are just ways you’ve figured out how not to do something so stop being so hard on yourself and keep moving forward. Who are your hero’s inside and outside of business? In business, I admire anyone who puts everything on the line and comes through the other side a success. Outside of business, anyone who dedicates their time to giving back or helping others. Selfless people. What qualities do you most admire in others? Qualities I look for in a person are loyalty, accountability, humility, and anyone who welcomes change. How do you unwind out of work? Long walks with the dog and red wine! Favourite book/CD/DVD? A Christmas Carol (Dickens) / Any 80’s CD / Schindler’s List Where is your favourite place in Scotland ? Anywhere in the East Coast. If I had to choose one, then Elie with St. Andrews a close second.
Landlords, Legislation
Legislation Update – Answers for Landlords
Legislation Update – Answers for Landlords Rent increase and eviction ban Scotland Following our last blog on the rent increase and eviction ban issued on 6th September 2022, Cairn have been working hard in the background to obtain answers for landlords on how this will work in reality. We have received update today that The Cost of Living (Tenant Protection) (Scotland) Bill has now been published: Cost of Living (Tenant Protection) (Scotland) Bill 2022: overview – gov.scot (www.gov.scot) Overview of Bill The Scottish Government have produced this Bill, as it is believed that people who rent in Scotland are the most at risk of poverty due to the financial crisis. The emergency measures have been implemented to: Protect tenants with the cost of living crisis by stabilising housing costs Lessen stresses and impacts on the wellbeing of tenants by evictions being banned. Give tenants more time to find alternate accommodation when facing eviction Reduce unlawful evictions and also raise the level of damages paid to a tenant by the landlord if unlawfully evicted. If passed, the Bill intends to place an immediate ban on rent increase notices and a moratorium on evictions until at least 31st March 2023. Wording has also been included to allow legislation to be extended by two further periods of six months with Parliamentary approval. However, there is a requirement for legislation to be examined and reported on, every 3 three months to ensure that the Bill is proportionate and reflects the changing economic crisis. Rent increase ban The emergency legislation aims to set a permitted rate of rent increase, known as the ‘rent cap‘. The cap will be set to zero from 6th September 22 to at least 31st March 23. However, the Scottish Government do have the powers to vary this cap to take into consideration the economic crisis on a wider scale which we sincerely hope will be investigated, as it is not only tenants whom are struggling from the current crisis. The cap applies to any rent increase proposed on or after 6th September 22 and no rent increase can be issued whilst the cap of zero is in place. This legislation does not affect rent changes/increases between tenancies. The legislation does take into consideration the impact the cost crisis is having on landlords and has been updated to allow landlords to apply to a Rent Officer to increase the rent to cover some of the ‘prescribed costs‘ in the preceding six months. Prescribed costs are mortgage interest payments (for the let property) and landlord insurance (other than buildings or contents insurance) / service charges which the tenant is responsible for per the terms of the lease which the landlord has had to pay. The landlord will be required to provide evidence to the Rent Officer and where authorised, the landlord would be able to increase the rent by the lower of 50% of the increase in the ’prescribed costs‘ in the preceding six months, or 3% of the current rent level. Landlords and tenants will also have the ability to appeal the Rent Officers decision via the First-tier Tribunal for Scotland. Rent increases issued before 6th September 2022 It has been confirmed in the legislation that rent increase notices issued before 6th September 22, will still be enforceable after the required 3 month notice period to the tenant. However, tenants also has the right to apply to the Rent Officer to challenge any notices issued if they believe the increase has been set at an unfair level. Eviction ban The moratorium will stop enforcement action for induvial evictions over the next 6 months. However, safeguards have been implemented to allow enforcement of evictions in certain circumstances, these include: Cases of antisocial behaviour and criminal behaviour Cases of abandonment Substantial rent arrears (where at least 6 months worth of rent is owed at the point the eviction order is issued) Eviction applications submitted / orders issued before 6th September 2022 If an eviction order is granted before this legislation comes into force, or if a landlord has submitted an application for eviction with the Tribunal before the legislation comes into force, the case will not be affected by the moratorium. This also applies to an eviction notice issued to the tenant before 6th September 22 as these should still be enforceable in line with current legal requirements. Increases damages for unlawful evictions These changes have been implemented to discourage landlords from conducting unlawful evictions and if passed, seek to increase the award to tenants to the maximum amount of 36 months worth of rent. There is also a requirement being placed on the Tribunal to notify the relevant authorities (Police / local authority / landlord registration), that an order has been made against the landlord. With the ever changing legislation being implemented on private residential landlords, it is imperative that landlords employ reputable and qualified agents to manage their properties in Scotland. This will ensure legislation is being followed and that the most recent and correct advice on how to manage tenancies is being received. At Cairn, we have fully qualified and friendly staff waiting to assist landlords with management of their properties, we also have an in-house Compliance Manager who is both ARLA and LETWELL qualified to assist landlords with more difficult tenancy issues. Please do not hesitate to contact us to obtain further information on our management services.
