Re-opening the Scottish housing market and supporting tenants

Tenement Flats
Last week saw a bit more clarity regarding the Scottish housing market and further new measures introduced by the Scottish Government to support tenants. Here is our summary of the main points.

Re-opening the Scottish housing market...

A four-phase route map was released on 21 May, with a brief mention in Phase One about the safe reopening of the housing market. The route map gives an indication of the order in which the Scottish Government will carefully and gradually seek to change current restrictions.

The Scottish Government will move into Phase One following the 28 May end-of-cycle review of COVID-19 regulations if the evidence supports that. There is therefore no set date at present, however some news reports suggest 18th June as the likely start of Phase Two and therefore the anticipated date for reopening the Scottish housing market.

Further new legislation introduced to support tenants...

Additional requirements to gain possession:

The legislation will give ministers powers to introduce regulations requiring landlords to comply with pre action requirements before serving notice for rent arrears. This could include a requirement to notify tenants about the terms of the tenancy and what amounts are outstanding. The regulations can also set out steps that landlords must take to try to agree arrangements for repayment of any sums due.

Purpose built student accommodation and 28 days notice for all new tenancies - even if they have not yet started:

Another change introduced by the Bill is that tenants whose landlord is an educational institution or purpose-built-student-accommodation provider can give 7 days’ notice to end an existing tenancy. Tenants can also now give 28 days’ notice to a regular private residential tenancy (PRT) - even if it has yet started. These notice periods apply until the legislation expires on 30 September 2020 (although there is provision for the legislation to be extended beyond this date).

Discretionary Housing Payments:

During the course of debating the Bill the Housing Minister announced that funding for Discretionary Housing Payments will be increased by £5 million to help tenants who are struggling to cover their housing costs.
Landlords and Agents are encouraged to signpost tenants for all possible help they may be entitled to.

1Let will continue to ensure that tenants receive as much help and advice as possible.