New Scottish private residential tenancy in force from 1 December

The new private residential tenancy (PRT) will replace the current 'assured tenancy' regime for all future private sector tenancy lets from this date. The new tenancy is designed to improve security of tenure for tenants and provide appropriate safeguards for landlords, lenders and investors, according to the Scottish government.

PRT was created by the Private Housing (Tenancies) (Scotland) Act, the main provisions of which will also come into force on 1 December 2017. These include limiting rent increases to only one per year with three months' notice, giving local authorities the ability to impose rent controls in areas where there are "excessive" increases in rent and modernising and streamlining the grounds under which a landlord can repossess residential property.

The Scottish government is still to confirm the date on which significant non-legislative reforms to support the private rental sector (PRS) will come into force, including the planned rental income guarantee scheme (RIGS) for new PRS developments, and an 'opportunity document' for potential investors into the build-to-rent sector.

Draft regulations have also been published setting out the statutory terms that will apply to all PRTs from 1 December. They incorporate the new requirement for a written receipt where rent is paid in cash and requirements for the tenant to notify the landlord about other adults living in the let property; as well as making provision for rent increases.

The Scottish government has identified PRS as an important part of its housing strategy, which includes a target of 50,000 new affordable homes by 2021. Although the UK's PRS market is still relatively immature, it is expected to expand significantly in the near future, from a £15 billion to a £50bn market over the next five years according to the British Property Federation.

The Private Housing (Tenancies) Scotland Act was passed by the Scottish parliament in March 2016. Among the biggest changes it makes is the removal of the 'no fault' ground for repossession, which will be replaced with 17 potential grounds for repossession. Any disputes between landlords and tenants will now be dealt with by the new housing and property tribunal chamber, rather than the sheriff court.

Purpose-built student accommodation and accommodation provided by higher and further education providers are excluded from the definition of PRS covered by the new provisions. This has been done to give universities, students and accommodation providers certainty that rooms will be available for each academic year, and to ensure that fixed-term lets can continue to be offered to students.