The New Letting Landscape in Scotland

On 1st December 2017 new legislation came into effect that changed the way landlords and tenants enter into lease agreements. From that date, all new tenants moving into rental properties in Scotland have to sign a Private Rental Tenancy Agreement (PRT) instead of a Short Assured Tenancy (SAT) agreement.

The major difference between the agreements is that a PRT agreement has no fixed initial term i.e. 6 or 12 months. Indeed, there is no end date in the lease so a landlord or tenant can end their tenancy at any time, providing they adhere to the statutory notice periods and – in the case of landlords – can demonstrate they have valid eviction grounds.

Please note that the PRT is a model lease produced by the Scottish Government for all landlords to use and is the only residential agreement landlords and tenants can enter into. ACE Property is using this “model” tenancy and adding additional clauses to it to try to protect our clients investments.

There has been much publicity and, some negativity, around the new PRT. In particular, the “no fault clause” existing in the SAT but not in the PRT which some landlords have used to evict tenants has raised concerns. However in our now 13th year of existence, we have used this “no fault clause” on less than 3 occasions so we think the negative consequences have been overblown.

A landlord may end a tenancy at any time after the start date, provided they have valid grounds for eviction and give the correct notice period. 18 grounds are listed and 8 of them are designated as mandatory which means that if the ground exists, the tenant must leave the property. In summary, if the landlord wishes to sell, refurbish, move into, convert to commercial usage, then the tenant must leave the property. A further ground makes it easier to remove a tenant for non-payment of rent than it would be under SAT rules.

Where ACE Property (and other agents of our acquaintance) see a harsher climate is that if a tenant wants to leave, they may do so at any point after the start date, provided they give the landlord 28 days’ notice. They do not have to give a reason. Our view is that while some tenants may move in on day 1 and give notice to leave the next day, they will be in the small minority. As time goes on, the market place will adjust to such issues and we believe that through our strong referencing system and by working closely with other letting agents, we can avoid those tenants looking to exploit this new regulation.

The above is a very short summary (the model lease extends to 36 pages together with an additional 30 pages of notes) of the new letting environment as we see it. All landlords should familiarise themselves with this letting landscape and the following website will help https://beta.gov.scot/publications/private-residential-tenancies-landlords-guide/

To view a model PRT lease, visit https://beta.gov.scot/publications/scottish-government-model-private-residential-tenancy-agreement/

Written by Alan Nash – alan@acepm.co.uk

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website.

You May Also Enjoy

Estate Agents should not all look the same
Estate Agent Talk

How to Become an Estate Agent with No Experience

Breaking into the property industry can seem intimidating – especially if you’ve never worked in it before. But the good news? You don’t need years of experience or fancy qualifications to start a career as an estate agent in the UK. In fact, many successful estate agents started with no background in property at all.…
Read More
buying at auction uk
Estate Agent Talk

9 Advantages of Selling Your House by Auction

Selling your house by auction might seem like a daunting prospect, but it comes with numerous advantages that can make it a highly attractive option. While the traditional method of selling through an estate agent has its place, auctions are increasingly becoming a popular choice for homeowners looking for a swift and reliable sale. Here…
Read More
Breaking News

Majority of Tenants Unsure How Changes Will Affect Them, Says LRG

With major changes to the private rental sector on the horizon, 62% of tenants say they don’t know whether the government’s Renters’ Rights Bill will address their concerns – highlighting a growing need for clearer communication around what the reforms will mean in practice. LRG’s latest Lettings Report shows that while landlords are widely aware…
Read More
Home and Living

Perfume Storage Tips: How to Keep Your Fragrances Fresh

Perfumes are sensitive compositions that can be significantly affected by how they are stored. Proper storage ensures that your favorite fragrances stay fresh and maintain their intended scent profile. In this article, we’ll explore practical, fun, and effective tips to help you preserve your perfumes in perfect condition. Understanding the Sensitivity of Perfumes Perfumes are…
Read More
Breaking News

Renters’ Rights Bill Delay Causing Uncertainty for Tenants and Landlords

Ministers need to tell landlords and tenants when measures in the Renters’ Rights Bill will take effect the National Residential Landlords Association (NRLA) is today warning. The Government pledged last year to abolish Section 21 ‘no explanation’ repossessions and to make other changes to the rental market this summer. With the Bill not scheduled to…
Read More
Breaking News

Breaking Property News 02/04/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   Made Snappy 360 appoints new CEO and Sales Director to accelerate growth in the property technology space Made Snappy 360, the fast-growing proptech company known for its virtual tours and floor plan technology, has appointed industry veteran Mark Beresford-Ward as its new Chief Executive…
Read More