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Sturgeon sets out plans for private sector rent controls

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Nicola_SturgeonFirst Minister Nicola Sturgeon has laid out plans to introduce new bills to improve security for private tenants, introduce rent controls and abolish the “bedroom tax” as early as possible.

Setting out her government’s legislative programme for the last session of the Scottish Parliament before the 2016 elections, Ms Sturgeon said the new Private Tenancies Bill will improve security for tenants in the private rented sector (PRS) and provide clear rights and safeguards for landlords.

The bill will provide more predictable rents and protection for tenants against excessive rent increases, including the ability to introduce local rent controls for rent pressure areas.

Specifically, the bill will:

  • Introduce a Scottish Private Rented Tenancy to replace the current Assured system

  • Remove the “no-fault” ground for repossession, meaning a landlord can no longer ask a tenant to leave simply because the fixed-term has ended

  • Provide comprehensive and robust grounds for repossession that will allow landlords to regain possession in specified circumstances

  • Provide more predictable rents and protection for tenants against excessive rent increases, including the ability to introduce local rent controls for rent pressure areas

  • Create a more streamlined, clearer to understand tenancy system that is fit for the modern private rented sector

    • Commenting on the announcement, David Melhuish, director of the Scottish Property Federation, said: “We will consider the detail of the bill carefully when it is published but we have been trying to encourage investment into Scotland’s purpose-built rental market for a long time and it has been great to see momentum build over the past few months with some big investments in housing taking place.

    “A clear message we have had from the industry, however, is that the mere prospect of rent controls, could be enough to spook potential investors bring us back to square one again.

    “If the Scottish government wants to increase housing supply, then the introduction of rent controls is not the way to do it.

    “The purpose-built private rented sector has the potential to deliver a large amount of new homes across Scotland, and we should be doing everything we can to encourage investment in this sector rather than regulate this sector before it has had chance to take root.”

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