Changes in Scotland’s Private Rented Sector

Since September 2022, there have been regulations in place to control rent increases and safeguard against evictions for privately let residential properties, established under the Cost of Living (Tenant Protection) (Scotland) Act 2022. However, effective April 1st, 2024, these restrictions, including the 3% rent increase cap, will be lifted.

To mitigate the risk of significant rent hikes, pending parliamentary approval, the process for rent adjudication will be temporarily adjusted for one year, starting April 1st, 2024. This adjustment aims to provide a fair approach to resolving rent disputes during this transitional period.

Here’s what landlords need to know about rent reviews in April:

Private residential tenants can dispute a rent increase, with disputes reviewed by Rent Service Scotland or the First-tier Tribunal.

Rent will be determined based on the lowest of three figures: the open market rate, the rent requested by the landlord, and a comparator based on the difference between the market rate and the current rate.

Proposed regulations necessitate the use of a rent taper formula if a tenant applies for rent adjudication:

• If the rent increase is 6% or less than the market rent, the landlord can increase the rent by the proposed amount.

• If the gap between the market rent and the current rent exceeds 6%, the landlord can increase it by 6% plus 0.33% for each percent that the gap exceeds 6%. The total rent increase cannot exceed 12%.

Read the Rent Adjudication (Temporary Modifications)(Scotland) Regulations 2024 here..

As demand for rented property rises, many privately let properties with existing tenants now have below-market rent due to the 3% cap in place since 2022. This is likely to lead to widespread rent increases across the country, although the full impact on the market remains to be seen.

Before these restrictions are lifted, further changes are set to take effect on March 1st, 2024, with new measures being added to the Repairing Standard, which applies to all privately let residential properties and Short Term Lets. These include:

• Safe Kitchens

• Fixed Heating System

• Safe Access to Common Parts

• Consent to Work on Common Parts

• Safe and Secure Common Doors

• Residual Current Devices

• Properties must be free of lead pipes, or a water quality test must be carried out.

• Other fuels, such as oil installations, must meet the same repair standards as gas and electricity installations.

For full information regarding the changes to the Repairing Standard, click here. While many properties will already meet these additional requirements, there is a risk, primarily to older tenancies, that may not meet the new requirements, necessitating additional works.

For further discussions on how these changes affect your property, please contact our professional letting agents at Bell Ingram.

Bell Ingram Announces Promotion of Rhona Booth

Bell Ingram, leading land and property management specialist, is pleased to announce a significant milestone within the organisation with the promotion of Senior Associate Rhona Booth to the position of Forfar Office Manager, effective April 1, 2024.

Rhona’s elevation to this pivotal role reflects her unwavering dedication, extensive expertise, and profound understanding of the Angus and Perthshire farming communities, positioning her as the ideal choice to lead the Forfar office into a new era of success.

With 20 years of experience as a highly accomplished RICS Chartered Surveyor and Registered Valuer, Rhona has been an invaluable asset since joining Bell Ingram in 2020. Her exemplary skills in estate and farm management, coupled with her strategic acumen, have consistently driven business growth and forged enduring relationships with clients and partners alike.

Rhona’s unparalleled knowledge and extensive network within the Angus farming community are standout qualities that will undoubtedly contribute to the continued expansion and prosperity of the Forfar office. Her deep understanding of the local landscape, combined with her established relationships, will be instrumental in solidifying Bell Ingram’s presence in the region and enhancing service delivery to clients.

Bell Ingram’s Forfar office is situated in the heart of the Angus’ agricultural community and provides a full spectrum of advice to clients on farm valuation, land management, farm sales and opportunities surrounding renewables.

While assuming the day-to-day responsibilities of managing the Forfar office, Rhona will collaborate closely with Senior Partner Malcolm Taylor, who will retain overall control. Malcolm’s strategic guidance will complement Rhona’s local expertise, ensuring an approach that maximises Bell Ingram’s impact in the region.

Mark Mitchell, Managing Partner at Bell Ingram, said: “Rhona’s commitment to our company’s goals, coupled with her proven track record, makes her the ideal choice for this role. I have full confidence that under Rhona’s leadership, the Forfar office will achieve new heights of success.”