The Scottish Government has today published a new bill which aims to give more security, stability and predictability to tenants renting in the private rented sector (PRS).

The Private Housing (Tenancies) (Scotland) Bill will protect 700,000 people from the prospect of unforeseen and unfair eviction and unpredictability over rent increases, as well as ensuring the sector is attractive to investors, with better management and regulation.

Proposals in the bill include:

Housing minister Margaret Burgess said: “The Scottish Government is committed to ensuring every person in Scotland has a safe and warm place to stay, and that there is a sustainable, long-term solution to addressing housing affordability. This includes investing in house building and modernising the private rented sector, so we have a system fit for today’s tenants and landlords.

“The changes outlined in this bill will give tenants greater security and stability in their home and community. It will also give landlords reassurance that their tenants will treat their property as a long-term home, rather than somewhere temporary.

“The private rented sector is changing. It is now home to a growing number of people in Scotland, and we recognise there are some areas where rents are increasing significantly. It is right and responsible to give local authorities the ability to introduce rent controls in order to ease areas under pressure.

“The range of measures brought forward under this bill will ensure the private rented sector is better managed, simplified and successful, and creates a system that works for everyone.”

The bill forms a key part of the Scottish Government strategy to grow and improve the private rented sector. In response to an action set out in the strategy, Ministers set up an independent Tenancy Review Group which recommended a new tenancy. The introduction of the bill follows two full public consultations, which were undertaken as part of this process and received around 10,000 responses.

Jon Sparkes, chief executive of Crisis, said: “Today’s announcements on tenancy reform are a major step forwards, with Scotland once again taking the lead in protecting people from the devastation of homelessness. As the private rented sector continues to grow, we are delighted that the Scottish Government has put greater protection for tenants at the heart of its housing plans by removing the ‘no fault’ grounds for eviction.

“It is also pleasing to see acknowledgement of the challenge posed by high rents in some areas of Scotland, which can put secure housing out of reach for many. These areas badly need more affordable homes to prevent the housing crisis escalating further.”

To help secure new investment in the private rented sector and help meet the demand for more homes the Scottish Government has agreed to explore the development of a financial guarantee mechanism to stimulate private rented sector expansion in Scotland.

As part of this drive to support growth, Scotland’s chief planner has written to the heads of planning in every local authority to re-emphasise the importance the Scottish Government is placing on boosting the supply of housing across all tenures. He has encouraged local authorities to consider the role PRS homes can play in meeting housing need and demand in their areas.

Subject to an application from a local authority, Ministers will have the ability to introduce local rent controls for sitting tenants in areas under rent pressure. Consultation with landlords and tenants would be part of this process, with Ministers deciding on rent caps for a period of time not exceeding five years.

The main aspects of the provisions are: