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Walker and Sharpe > Latest News > property > Important Updates for Local Landlords and Tenants: Changes Coming from 1st April 2024



Important Updates for Local Landlords and Tenants: Changes Coming from 1st April 2024

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As we look forward to the Easter Bank Holiday Weekend, there are some noteworthy updates to the law relating to private tenancies and evictions in Scotland that landlords and tenants alike ought to be aware of. We have summarised some of the key changes below.

Time to Act: Moratorium on Eviction Orders Ends

The temporary halt on enforcing eviction orders which has been in place since September 2022, courtesy of the Cost of Living (Tenant Protection) (Scotland) Act 2022, is coming to an end. From the 1st of April 2024, landlords will once again have the authority to enforce eviction orders that were previously placed on hold for a period of up to six months under the Act. There were some exceptions to the ban depending on the reason that the eviction order was sought, including some new temporary ‘hardship’ grounds which were also introduced under the Act.

So, what does this mean in practice? Well, if you are a landlord who has obtained an order for eviction during this period but have not yet been able to enforce it due to the ban, this can be enforced by Sheriff Officers on or after 1st April, even if the order was obtained less than 6 months ago. Notices served during this period will remain valid, and pending eviction applications will be processed as usual by the First-tier Tribunal for Scotland (Housing and Property Chamber).

Farewell to Rent Caps: Freedom to Set Rental Rates… Sort of

From 1st April 2024, the rent cap brought in under the legislation will also be lifted. This means landlords will have more flexibility in setting rental rates for their properties. However, this is not an end to restrictions on rent increases altogether. Instead of a fixed cap on rent hikes, a new transition process will be introduced with the aim of achieving fairness and transparency for both landlords and tenants.

Under this new temporary process, when a landlord proposes a rent increase, tenants will have the opportunity to initiate the rent-adjudication process. This involves referring the proposed increase to either a rent officer or the First Tier Tribunal for Scotland (Housing and Property Chamber).

The increased rent will be determined by considering three factors: (1) The landlord’s proposed rent; (2) The open market rent; and (3) The permitted rent, which is calculated based on the difference between the tenant’s current rent and the open market rent. If a tenant applies for their rent increase to be adjudicated, the rent officer or First Tier Tribunal will apply a formula to determine the permitted increase.

This process applies to tenancies within the private rental sector. Rents set by providers of social housing under Scottish Secure Tenancies remain unaffected by these changes.

It’s essential for both landlords and tenants to understand their rights and responsibilities under these new regulations.

If you have any questions or need clarification, don’t hesitate to get in contact with us. Our experienced solicitors are here to provide legal advice tailored to your specific situation.

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