The latest news to affect the property market – and what it means
As average monthly rent in the UK hits a record high, and demand outstrips supply in many areas the rental market has been under the microscope. Now in Scotland it’s the subject of change too.
On 7th October the Private Housing (Tenancies) (Scotland) Bill was introduced at Holyrood, its aim to create a place ‘to call home’ for those renting in Scotland while maintaining the Scottish market as one attractive to investors.
The bill seeks to give local authorities the power to introduce rent controls in areas where rent is steeply increased. This should ease financial pressure on tenants and will be especially valuable in hotspots like Edinburgh and Aberdeen. It also limits rent increases to one per year, with a three month notice period prior to any raise to allow tenants to budget accordingly.
By giving tenants security it also offers landlords assurance that rental properties will be treated with the respect of a long term home. The bill also addresses the contentious issue of revenge evictions.
No Fault Eviction
So called revenge evictions attracted debate earlier this year. It’s another issue which the Bill seeks to redress by abolishing no fault eviction (where landlords can repossess a property at the end of a tenancy, simply on the grounds that the original period has ended).
Counterbalancing these changes are more progressive repossession grounds for landlords in rent arrears cases, and where the landlord wishes to sell a property.
The Scottish parliament has taken a huge step by bringing this bill to parliament. While we’re sure it will have an interesting journey through parliament it’s reassuring to be working toward a system fit for purpose in 2015.