Today the Fair Rents (Scotland) Bill was introduced to the Scottish Parliament. The aim of the Bill is to change the law in Scotland by amending the Private Housing (Tenancies) (Scotland) Act 2016 and to improve the way that rents are set in the private rented sector, with further support for low income tenants and to help reduce poverty and hardship.
The Bill will set a cap on any rental increases and allow tenants to apply for a fair rent to be set, which will be considered based on the condition of the property, the décor, the energy efficiency and other issues.
Here’s a summary of the proposals in the Bill:
Summary of the proposals in the Bill:
- A cap in Scotland on rent increases for Private Residential Tenancies (PRT) at no more than the annual Consumer Prices Index (“CPI”) plus 1 %.
- Tenants will have a PRT with the right to apply for a fair rent to be determined once in any 12 month period.
- Private landlords are required to disclose the rents they charge for each property when they register or renew their registration on the Scottish Landlord Register.
- Scottish Ministers must publish a statement on the impact of the Bill within three years from the commencement of the proposed legislation.
- Scottish Ministers will be able to vary the additional percentage to be applied to CPI in the fair rent CPI cap either upwards or downwards, including a negative percentage.
- Fair rent determination by a rent officer of the First Tier Tribunal cannot be increased from the proposed rent figure that is being appealed against.
- The rents registered in the Landlord Register will be in the public domain.
The Bill will be introduced by May 2021. Talk to us at Newton Letting to discuss this proposal and how it may affect you as a landlord.