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4. The Ability of the Private Rented Sector to Provide Appropriate and Well-Managed Accommodation

Introduction

4.1 As mentioned in chapter 1, the PRS often suffers from unfavourable perceptions. This chapter looks at whether, in fact, the PRS is providing satisfactory housing for tenants and a satisfactory management regime for landlords. It examines various aspects of the sector, including property and management standards, satisfaction of tenants with landlords and vice versa and experience of agents' services. There is also consideration of whether the tenancy regime, particularly short-assured tenancies, is working effectively.

Satisfaction of tenants and landlords with home and management service

PRS tenants are generally satisfied with their landlord, home and neighbourhood

4.2 The review has reported positively about satisfaction levels in the sector, with 85% of tenants saying that they are very or fairly satisfied with their landlord ( TS:48-50). One in twenty tenant households (5%, implying about 10,000 in the sector as a whole) was dissatisfied with the remainder being neither satisfied nor dissatisfied ²⁶ (Table 4.1). Where there was dissatisfaction with landlords or agents, it was largely because of their taking too long to deal with problems. Other key reasons appeared to relate to customer care (for example, not responding to calls or emails or being rude or unhelpful), rents being too high or failure to deal with repairs properly. Tenants did report seeking advice or taking action to rectify the problem, with around half saying that the action had been effective or partly effective ( TS: 49).

4.3 The vast majority of tenants (85%) would also appear to be satisfied with their home. The main reasons quoted for satisfaction were property location (mentioned by 74% of satisfied households) and property condition (mentioned by 57%). Satisfaction levels were similar across urban and rural areas.

4.4 Fewer than one in ten tenants (i.e. fewer than 23,000 in total) was fairly or very dissatisfied with their home. The main reasons for dissatisfaction were repairs - both minor (mentioned by 41% of dissatisfied households) and major (mentioned by 32%).

Table 4.1 Satisfaction with landlord and agent (%)

Source: 2008 Tenants Survey, Q41a and Q42a

4.5 There were lower satisfaction levels amongst particular types of household: for example, satisfaction levels dropped to 72% for lone parents, 75% for couples with children and 75% for recipients of full housing benefit. Although the sample numbers were very small, only 45% of households that had difficulties finding out about their housing rights were satisfied with their home.

4.6 There was little evidence of serious issues occurring on a regular basis. When tenants were asked about problems in their current home, over two thirds said that there were no problems. Of the third of tenants that did cite problems, some were serious (3% of all tenants noted disrepair to heating services and 5% said that the property was not wind or water tight).

4.7 Issues such as harassment or threatened eviction were not mentioned by tenants as current problems. Obviously, these are very serious problems when they occur, but this finding suggests that they are, fortunately, very rare ²⁷. The Scottish Government has worked with the Association of Chief Police Officers in Scotland ( ACPOS), the Convention of Scottish Local Authorities (Co SLA) and the Crown Office to issue guidance to local authorities and police forces, raising awareness of illegal evictions and encouraging information-sharing protocols and other measures to combat such behaviour.

4.8 When asked about satisfaction with their landlord the tenant survey suggests that inappropriate behaviour from landlords is rare, although there were some reports and when it does it happen it is obviously highly distressing for the tenant. Only 6 households complained that landlords/agents entered the property without notice and 4 households said that the landlord/agent used threatening/violent behaviour. 4.9 An NUS report ²⁸ suggests that almost 1 in 5 students had experienced inappropriate behaviour from landlords with this being equally split by gender of students. There is no further information on the nature of inappropriate behaviour available from the survey and this finding is not backed up by the current tenant survey. However it is still of concern. The NUS report recommends that more should be done to raise awareness of the role of landlord registration and the need for tenants to report and evidence improper behaviour.

4.10 Tenants were also asked about problems with any previous tenancies and again most (7 in 10) who had previous experience of the sector had not experienced any serious problems. 2 in 10 had experienced difficulties with repairs; 1 in 15 had experienced problems with tenancy deposits (see Chapter 5), and less than 1 in 20 had been asked to leave by their landlord before they considered their tenancy had ended (it was not possible to tell whether this happened before or after the six month minimum period had expired), or experienced rent increases outwith the tenancy agreement in any of their previous tenancies ( TS:57).

4.11 The proportions of PRS households rating the quality of their neighbourhood as very or fairly good has stayed stable over recent years. Slightly less than one half of PRS households rate their neighbourhood as a very good place to live, with a similar proportion rating it as fairly good ( SHS 2005-06). Slightly less than one in ten rate their neighbourhood negatively. Views of PRS tenants about their neighbourhood are better than social renters (where one third rate the neighbourhood as good) but lower than owner occupiers, two thirds of whom rate their neighbourhood as very good. This finding suggests that the PRS is largely providing accommodation in good areas to live.

Landlords have a broadly positive attitude to letting in Scotland

4.12 The willingness of landlords to stay in the PRS will depend to some extent on their views about letting accommodation in Scotland. The Landlords Survey asked a number of attitudinal questions to which landlords replied on a scale from "strongly agree" to "strongly disagree". This showed that, on the whole, landlords had a broadly positive view of letting properties in Scotland. More than three quarters of landlords agreed that tenants generally looked after accommodation, that they paid their rent on time, and that it was easy to fill vacancies. Only one in seven landlords thought that landlords in general had lots of disputes with tenants over the return of deposits and that many tenants behaved in an anti-social way to other tenants and neighbours (full analysis LS:57-61).

4.13 However, some other issues did provoke more mixed responses. There was less agreement from landlords on whether there was an adequate balance of interests between landlords and tenants, with the evidence from focus groups suggesting that landlords feel the law is heavily weighted towards tenants' interests. Also, almost half of surveyed landlords disagreed with the statement that "Landlords are adequately protected by the law against tenants refusing to leave". The review found that this is one of the reasons that landlords prefer six month tenancies to longer ones, since they are concerned about the legal process to obtain possession ( LS:87). This was discussed further in focus groups, where landlords complained about slow court procedures when they sought repossession, and legal costs amounting to more than the loss in rent ( LS:80). These and other issues raised by landlords about the tenancy regime (notice periods etc.) are discussed later.

4.14 On the whole it seems that full-time business landlords and companies are slightly less content than other landlords, particularly around issues such as tenants paying their rent on time, looking after the property and whether there was an even balance of interests between landlord and tenants.

The experience of agents' services is on the whole positive, although there were some areas of concern

4.15 The review found that, while the professional set-up of agents ensures that what is generally considered to be good advice can be given to landlords, levels of tenant satisfaction with agents tend to be lower than that for landlords ( TS:49) and there are occasions when what might be regarded as industry core standards seem to have slipped. For example agents seem less likely to have taken inventories than landlords (56% of tenants in properties managed by agents had an inventory compared to 71% of tenants in properties that are not managed by agents) ( TS:51).

4.16 Landlords saw agents as a good source of advice, with six in ten saying that they had sought help from agents in the last two years and that, in the majority of cases where agents had given advice, the landlords had found that advice to be very or quite helpful ( LS:63). One quarter of landlords who did not themselves use agents to manage their dwellings also sought agents' advice from time to time.

4.17 There was also evidence of areas in which agents' practice is better than landlords' in general. For example, the tenants survey shows that those in "less formal" tenancies - those without a written agreement and those that did not pay a deposit - were much less likely to live in properties managed by an agent. However, evidence also pointed to the need for improvement, with one in six tenants living in properties managed by an agent where they have no written tenancy agreement.

4.18 The tenants survey also found that one in ten households had paid a fee to agents usually to cover administration ( TS:60). Almost all of these fees had been paid in urban areas and a disproportionately high number had been paid by tenants born outside the UK (30% of those paying fees were born outside the UK). The value of fees varied with most paying up to £100 but a significant minority paying more than £200.

4.19 On the whole, tenant satisfaction with agents was quite high though slightly lower when compared to satisfaction with landlords, particularly in terms of the proportion of tenants who were 'very satisfied' with their agent. The review found that agents had an important role in helping tenants access the private rented sector, with around one in four tenants using an estate agent, letting agent or solicitor to access a property. The reasons stated for dissatisfaction with agents were similar to those noted for landlords, although tenants were slightly more dissatisfied with agents taking a long time to return calls or emails and being rude and unhelpful, compared to landlords. In other areas - rent levels, entering property without notice or using threatening behaviour - dissatisfaction was higher with landlords than with agents, though figures for this are very small, suggesting these behaviours are fortunately rare ( TS:49).

Conclusions

4.20 Taken together, the evidence presented here suggests that tenant satisfaction levels in the sector are high: rating of the landlord, agent, home and neighbourhood suggest a sector that in general is meeting customer needs. This suggests that many of the perceptions of private renting as something of a 'Cinderella sector' may be overstated. It is clear that some tenants do have problems, which can be serious, but these appear to be in the minority.

4.21 However, this is not to be complacent about the unacceptable experiences that some tenants have in the sector. Although fewer than 10,000 tenants reported problems with repairs, these can be a serious matter. The other main issue, where tenants reported a problem, was with tenancy deposits (see Chapter 5). Private tenants can enforce minimum standards of repair and maintenance in the properties they let - the Repairing Standard - via the Private Rented Housing Panel (see below under property condition). Tenant awareness of this and other rights, however, has emerged as a key finding of this review and is discussed in Chapter 5.

4.22 It is also encouraging that most landlords have a positive view of their activities. As stated in Chapter 1, the Scottish Government is concerned to achieve a balance in the PRS between regulation to protect tenants and the need to encourage landlords to provide accommodation. We seek to avoid the system being biased towards the rights of either tenants or landlords.

4.23 We take the concerns of landlords seriously, and want to consider with landlord organisations and others whether it might be possible to clarify some of the procedures that are of concern, such as gaining possession of a property if a tenant refuses to leave, or to issue guidance. Clarifying the possession process, and thereby making it easier for landlords to take action when there are problems, may also encourage them to consider granting longer tenancies.

4.24 It is possible that the outcome of the current Scottish Civil Courts Review may lead to reductions in the length and cost of legal actions to gain possession of rented properties and exercise other rights (for landlords and tenants). This review has been established to look at the structure, jurisdiction, procedures and working methods of the civil courts in Scotland, particularly such matters as the cost of litigation; the role of mediation and other methods of dispute resolution in dealing with cases; modern methods of communication and case management; and the issue of specialisation of courts or procedures, including the relationship between the civil and criminal courts. The review will make recommendations for changes that will aim to improve access to civil justice in Scotland and promote early resolution of disputes. We will want to take account of the findings of that review as we work with stakeholders to take forward the issues identified in this research.

4.25 Improving the availability of information about the respective rights and responsibilities of tenants and landlords and about legal processes relating to the PRS (see Chapter 5) should also help to increase understanding of these areas.

4.26 As mentioned in Chapter 2, the Scottish Government will attempt to develop better links with agents, both inside and outside professional bodies, in order to discuss policy developments and ways of improving agents' services.

4.27 We will also consider carrying out further research to understand the role of agents within the PRS, including their relationship with landlords on such matters as control of properties, tenancy management and finance. Such research could inform consideration of the possible need for regulation to be extended to agents, given that they often occupy the same position in relation to tenants as landlords do. There appears to be wide support for regulation of agents, including from many agents themselves and professional bodies representing agents. The regulation of agents was recommended in the UK Government-commissioned Rugg Review of the Private Rented Sector in England, published in 2008 ²⁹. The Scottish Government would expect to discuss any such proposal with the UK Government, given that the regulation of letting agents may fall within the reserved area of consumer protection.

Property condition, disrepair, adaptations and energy efficiency

PRS property condition and disrepair are still largely worse than other tenures

4.28 The PRS currently has greater prevalence of disrepair than the owner-occupied and housing association sectors ( SHCS, 2007). Around six in ten PRS properties experience some disrepair to critical elements ³⁰; and more than one in three PRS properties are considered to have extensive disrepair ³¹ - the worst performance in the tenures considered.

4.29 However, it may be that it is the common property types in the PRS that lead to these difficulties, with property repairs and their organisation more challenging in themselves, rather than the problem being landlords failing to act on repairs and/or tenants failing to report them. Evidence from the SHCS on the presence of disrepair does support this view across common property types. Chart 4.1 shows that pre-1919 flatted properties in the PRS are no more likely to be in disrepair ³² than owned properties across all measures with the exception of disrepair to a critical element. Figures for post-1982 flatted properties show a similar trend, with 39% of PRS properties showing disrepair compared to 40% of owner occupiers and only 1% of PRS showing extensive disrepair compared to 7% of owner occupiers.

4.30 Only with pre-1919 detached homes does the PRS appear to be in poorer condition then other tenures for the same type of property with 59% of PRS properties in extensive disrepair compared to 33% of owner occupied. Pre-1919 detached homes tend to be more prevalent in rural areas and hence this finding does have a rural aspect to it.

Chart 4.1 The proportion of pre-1919 tenements in any, extensive or critical disrepair by tenure

Source: Scottish House Condition Survey, 2003-2006

4.31 The problem of undertaking repairs in flatted properties with a mix of ownership is well documented and was strongly presented by landlords in the review. They argued that local authorities should look for more successful ways of enforcing communal repairs on all owners of tenements, including by paying the cost for those unwilling to accept their share and taking a legal charge on their flat ( LS:74).

4.32 In addition, some landlords spoke of the way some tenants treated their tenancy deposit as an advance payment on the last month's rent and hence left without paying rent for their last month. If there had been damage, the landlord was left with no funds from the deposit to do the repairs ( LS:80). Some limited evidence of this was found from the tenant survey where 4% said that they had previously withheld their last months rent ( TS:59).

4.33 The implementation this year of the maintenance provisions in the Housing (Scotland) Act 2006 is expected to address some of these problems. A local authority will be able to place a maintenance order on a house or group of houses, such as a tenement, where there are problems with a lack of maintenance. The owners will have to produce and implement a maintenance plan. If they fail to do so, the local authority may carry out the work, recover its costs from the owners, and place a repayment charge on the house of any owner who does not pay. If an owner does not contribute to the cost of works (whether there is a maintenance order or not), the local authority may pay the missing share where the owner is unable to do so, cannot be found, or it is unreasonable to require that owner to pay. This supports the provisions of the Tenements (Scotland) Act 2004, which set out default positions on agreeing and paying for repairs, where title deeds are deficient.

4.34 Many of the problems of disrepair in tenements could be avoided if a competent property manager were in place to organise inspections and repair and maintenance work. The Scottish Government announced in 2008 that it will support the establishment of a national property manager accreditation scheme, which will allow house owners to appoint an accredited property manager, in the knowledge that they should meet certain standards. It is expected that, once a scheme is in place, it will reduce problems of disrepair in the common parts of residential buildings.

4.35 The forthcoming implementation of the new local authority powers to deal with sub-standard houses in the Housing (Scotland) Act 2006 is likely to lead to more houses in disrepair, including tenements, being tackled. The Scheme of Assistance, which is being introduced at the same time, will allow local authorities to provide a range of assistance, from advice through to loans or grants, to owners, including landlords, when work notices are served on sub-standard houses and in a range of other circumstances, defined by the local authority, when work is done on houses.

4.36 In terms of tenants' views, around one-fifth had had problems with repairs in a previous tenancy, and minor or major repairs were a key problem where there was dissatisfaction with the current home. Similarly, one of the key issues where tenants had problems with landlords or agents was the time taken to undertake repairs ³³.

4.37 The review found that the majority of tenants knew who to contact if an emergency repair was required, but around one in twenty did not know who to contact and a similar proportion was resigned to the fact that nothing would be done about the problem ( TS:55).

4.38 In September 2007 a new Repairing Standard for the private rented sector was introduced, extending the statutory standards of repair that are required. This covers the house being wind and watertight, as well as the state of internal installations, fixtures and fittings, and the safety of furniture supplied. Whereas tenants previously had to take court action to enforce the landlord's repairing obligations, which many found too daunting, the Repairing Standard is enforced by the tenant through the Private Rented Housing Panel, an easier and faster route. These changes should improve conditions in the sector, by encouraging landlords to undertake repairs and empowering tenants to take action where necessary.

The evidence suggests that tenants have a positive experience in obtaining adaptations to their PRS home

4.39 In December 2006 a Right to Adapt for private tenants was introduced. This means that, if a tenant needs to adapt the house to meet the needs of a disabled occupant, whose main or only residence it is, the landlord can only refuse consent, or impose conditions, on reasonable grounds. Reasonable conditions may include a requirement to re-instate the property.

4.40 The Tenants Survey found that around one in ten PRS tenants had a disability or limiting long-term illness that affected their ability to carry out normal everyday activities. Only around a third of these said that they required an adaptation to their home and in most of these cases the required changes had been made with the landlord's or agent's co-operation ( TS:51). This issue was not specifically covered in the Landlords Survey and was not considered a significant problem by landlords in the focus groups. The Scottish Government is encouraged by this finding.

Although smoke detectors, fire alarms and gas safety certificates appear routinely supplied, coverage is still not universal in the sector

4.41 The review found that almost all households with three or more adults (no children) had a smoke detector/fire alarm. This household type will include flat sharers and people living in HMOs, where the risk of fires and injury through fires is likely to be the greatest and where HMO licensing conditions require a higher level of fire safety measures. Fire safety measures in HMOs are now enforced by the Fire and Rescue Service. Since September 2007 the Repairing Standard has required all privately rented houses to have smoke alarms fitted; new and replacement alarms must be hard-wired. However, just eight in ten tenants without written tenancy agreements had a smoke detector/fire alarm ( TS:55).

4.42 Seven in ten tenants in properties with gas appliances said that their landlord had a valid gas safety certificate. Tenants who were dissatisfied with their home or landlord/agent were much less likely to say that there was a valid certificate. A very small proportion of tenants said their property did not have a valid certificate, although this was considerably higher among the tenants dissatisfied with their home or landlord/agent. It is of particular concern that one quarter of tenants said they did not know whether there was a valid gas safety certificate, when they should have been given a copy, and the proportion was still higher for some types of tenant - in particular, people who were born outside the UK and tenants who deal mainly with an agent (for both groups, one in three households).

Energy efficiency and fuel poverty are particular challenges for the sector

4.43 A related challenge for the sector is energy efficiency. Private rented housing is much more likely to be rated "poor" on the National Home Energy Rating ( NHER) scale than either social rented or owner-occupied properties, with around one in six PRS properties rated poor ( SHCS, 2007). Again, this may be more of a function of the common types of PRS properties in Scotland, rather than a problem particular to private renting, although the extent of poor-rated PRS properties is noteworthy.

4.44 Similarly, more than a quarter of those living in the private rented sector were in fuel poverty in 2007 ( SHCS, 2007). One in ten private rented households (about 19,000) was living in extreme fuel poverty - more than twice the level of those in the social sector. Tackling fuel poverty in the PRS has been a key issue for student groups in particular.

Conclusions

4.45 The measures mentioned above - the Repairing Standard, the other maintenance and repair provisions in the 2006 Act, and the property manager accreditation scheme - are designed to deal with disrepair in the private rented sector or in private housing generally. However, the Repairing Standard has been in effect for little over a year and the other provisions have not yet been implemented. The Scottish Government considers that these measures should be given time to operate effectively.

4.46 There is a particular need to raise awareness among both tenants and landlords of the Repairing Standard requirement for smoke alarms, as part of the improved dissemination of information discussed in Chapter 5. It would also be desirable to raise awareness of the gas safety requirements among tenants and landlords. The Scottish Government encourages local authorities to advise and assist tenants and landlords in relation to these matters, as part of their general duty to offer advice and assistance to landlords and tenants. In particular, local authorities should consider helping vulnerable tenants with applications to the Private Rented Housing Panel.

4.47 The Scottish Government is concerned to increase energy efficiency in all housing, including the private rented sector, which we recognise includes a disproportionate number of dwellings with poor energy efficiency. There are some recent developments and forthcoming changes which should lead to improvements in the sector.

4.48 It has been argued that private landlords have less incentive than owner-occupiers to carry out energy efficiency improvements, since it is the tenants who pay the fuel bills and therefore benefit from better energy efficiency. However, there may be, to some extent and particularly in areas of high supply, a market incentive to carry out such measures to attract tenants, especially when fuel prices are high. The implementation of the Energy Performance Certificate ( EPC) is one such market pressure. From January 2009, an EPC showing the energy efficiency of the property must be provided to prospective tenants before a house is let. EPCs should raise awareness of energy efficiency among tenants as well as giving them more information, and landlords should be encouraged by this to upgrade their properties to make them more marketable.

4.49 Although the Repairing Standard does not explicitly address energy efficiency, it does include requirements for the landlord to ensure that the house is wind and water-tight and that installations for space heating and heating water are in a reasonable state of repair and proper working order. A forthcoming development - the addition of "satisfactory thermal insulation" to the criteria of the Tolerable Standard, which applies to all houses - will have an effect on some of the least energy efficient properties in the PRS, although it will require only a fairly basic level of insulation. Tenants may be able to enforce the Tolerable Standard criteria through the Repairing Standard, which includes the general requirement that the house should be "in all other respects reasonably fit for human habitation."

4.50 Landlords and agents accredited by Landlord Accreditation Scotland ( LAS) are required to meet the Scottish Core Standards for Accredited Landlords, one of which relates to energy efficiency, insulation and heating. This states that the property should provide a satisfactory level of thermal insulation, incorporating, "where necessary and practical", such measures as draught insulation of doors and windows (or secondary or double glazing); lagging of immersion heaters and hot water pipes; cavity wall insulation; and loft insulation to a depth of 250mm. There are also requirements relating to heating and an energy efficient hot water supply.

4.51 The Scottish Government wants to encourage and support further work on energy efficiency in the PRS. For example, we have allowed private landlords to access Energy Saving Scotland - Small Business Loans, which provides small and medium-sized businesses with interest-free loans from £1,000 to £100,000 to help finance a wide range of energy-saving measures.

4.52 There is a tax incentive in the form of the Landlord's Energy Saving Allowance ( LESA). This allows private landlords to claim a tax allowance of up to £1,500 per property when they install energy efficiency measures. The allowance can be claimed against income tax or corporation tax. The eligible installations are loft, cavity wall, solid wall, hot water system and floor insulation, and draught proofing. Using LESA means that a private landlord can improve a property (and its EPC) at a reduced cost (depending on the marginal rate of tax paid). The Scottish Government encourages landlords to make use of this allowance.

4.53 We are concerned that private landlords should be aware of the assistance that is available to them. We will be providing guidance to the sector through our Energy Saving Scotland Advice Network. Discussions with landlord organisations confirm that LESA is not widely known about, so we are discussing with the Energy Saving Trust ( EST) plans to publicise it. EST also plans, with Scottish Government support, to advise landlord organisations and individual landlords how they can access funding from the Carbon Emissions Reduction Target ( CERT) to make energy efficiency improvements. Options include working with local authorities to disseminate information via the landlord registration database. We have begun discussing with LAS the possibility of laying greater stress on the energy efficiency requirements for members of the accreditation scheme and drawing attention to the financial support available, and we are considering other possible methods of raising awareness among private landlords generally. We are working with EST, the Scottish Association of Landlords and the Scottish Rural Property and Business Association to clarify the best way to target our support.

4.54 Private tenants may be eligible for assistance in installing energy efficiency measures under the new Energy Assistance Package that will replace the Warm Deal and the Central Heating Programmes from April 2009. This can provide tenants with help with their incomes, through a benefit and tax credit check, with their fuel bills through a tariff check and with accessing energy efficiency improvements to the home through both the energy companies' insulation programmes, and, for the most fuel poor, additional help from the Scottish Government for insulation and heating measures. The Right to Adapt prevents private landlords from unreasonably preventing the installation of energy efficiency measures as part of the Energy Assistance Package (for all tenants, not just where there is a disabled occupant).

4.55 The Scottish Government will be consulting in 2009 on further measures to reduce emissions from Scotland's existing housing stock. The consultation will put forward a number of policy options aimed at contributing to the Scottish Government's ambitious climate change targets, and will consider ways in which homes can be made more energy efficient. This will include consideration of the energy performance of properties in the private rented sector, in view of its proportionately poorer performance in relation to energy efficiency.

Tenancy regime

The tenancy regime appears to be operating satisfactorily

4.56 The review has concentrated on the short assured tenancy ( SAT), which is by far the most common rental contract in the PRS. The Landlords Survey found that only 6% of tenancies were assured tenancies ³⁴. Security of tenure in the PRS is an area that some organisations, such as housing advice agencies, are concerned about. As discussed in Chapter 1, one of the concerns is that the tenancy regime places tenants in a vulnerable position when they try to seek redress for any problems with their let ³⁵. However, the review has found a low incidence of tenants being asked to leave and that the tenancy regime for short assured tenancies on the whole works well, meets most needs, and does not require major change, although there are some areas where improvements would be beneficial ( TS:70-71 and LS:42-43). As discussed earlier, issues such as harassment or threatened eviction were not mentioned by tenants as current problems.

4.57 The review found that more than nine in ten tenants said that they had a written and signed tenancy agreement and almost all said that they had a copy of the agreement. However, one in fourteen tenants (implying about 16,000 in total) reported that they did not have a written and signed tenancy agreement. It is perhaps also important to note that 13% of landlords said that they did not know what type of tenancy they offered, probably because this area is handled by agents, but even so it shows a low level of concern about the management of their properties. Around 8% of tenants said that they did not know what type of tenancy agreement they had despite most of these being signed written agreements.

4.58 The SAT, which runs for a minimum of six months, is popular with both landlords and tenants. Almost all landlords surveyed as part of the review made use of six-month SATs, as they were seen to offer valuable flexibility in managing properties. Most tenants also did not want longer formal security, with a majority preferring six month tenancies or less, although some households - recipients of housing benefit, older tenants, and rural tenants - were more likely to express a preference for a longer minimum tenancy (Chart 4.2). Although there was a clear difference by age there was no difference in preference on length of tenancy by households type. For example families with children were no more likely to want a longer or shorter tenancy than other households.

4.59 The preference for a longer tenancy was strongly related to the length of time the tenant had been living in the sector, with those living in the sector for longer periods of time generally preferring the comfort of a longer tenancy. For example 36% of the respondents that said that they would prefer a longer minimum tenancy had lived in their home for more than two years whereas 55% of those favouring a retention of the six month tenancy had lived in their current home for less than one year.

Chart 4.2 Tenants' views on minimum length of PRS tenancies

Source: 2008 Tenants Survey

4.60 The review found that the high level of turnover in the sector largely reflects the decisions of tenants rather than landlords - around eight in ten tenancies were brought to an end by the tenant ( LS:45-46). Of the remainder, around one in ten was ended by the landlord. The landlord did not know about the remaining one in ten, suggesting these were properties managed by an agent. Only 1% of tenancies were ended with a court order (which implies about 1,000 cases each year). The tenants survey similarly found that only a small number of tenancies were ended by landlords serving notice, though in some cases the notice periods given by landlords were reported as being very short, at just one or two weeks ( TS:59). While most tenants did tell their landlord they were going to leave, around one in ten did not and the tenants survey also found cases of tenants withholding their last month's rent. These practices cause landlords a number of problems, including difficulties carrying out and affording repairs, and covering unnecessary void periods.

4.61 In terms of tenancies ending, the review found that, although there would appear to be a relatively low incidence of tenants being asked to leave rather than choosing to leave, and that a majority of tenants felt they understood their rights in relation to their landlord seeking possession, landlords had concerns about their ability to take action against tenants who refused to leave. When asked, only one in five landlords felt that the law adequately protected them against tenants in these circumstances ( LS:80). Landlords also said they had problems seeking repossession through court orders, expressing extensive criticism of the lengthy procedures in accessing court hearings, with court costs often outweighing the loss of rent. There were particular problems with a perceived lack of clarity in the law about notice periods, which landlords felt needed to be addressed. Gaining access to carry out repairs where a tenant refuses entry was also reported as problematic ( LS:78). Landlords also reported problems ascertaining if tenants had actually vacated a property and gaining repossession in such cases of abandonment, and complained that statutory agencies were 'hiding' behind Data Protection Act legislation, preventing them from finding out information about their current or former tenants.

Conclusions

4.62 The evidence points to a tenancy framework that appears to be working satisfactorily, with many of those who want to stay in the sector for longer periods of time often able to do so. The review has, however, highlighted key issues which may lead to tenancies breaking down and the Scottish Government believes that policy development should focus on these issues and look at how tenancies can be sustained. The main issues are, for landlords, rent arrears, gaining access to carry out repairs and regaining possession, and, for tenants, getting repairs done and tenancy deposits. Tenant concerns with repairs and tenancy deposits are discussed elsewhere.

4.63 It is clear that there needs to be more awareness, particularly on the part of landlords, of possession procedures. This is a notoriously complex area. The Scottish Government will investigate whether guidance on this could be produced as part of the improved dissemination of information discussed in the next chapter, and will also consider whether it would be possible to clarify the process. As discussed previously, clarifying the possession process, and thereby making it easier for landlords to take action when there are problems, may also encourage them to consider granting longer tenancies.

4.64 We will also look at the question of landlords gaining access to carry out repairs and to deal with abandonment by tenants, to see if there could be any means of improving the processes. We will also consider whether any guidance or other practice could help with the issue of rent arrears, possibly by taking forward further research in this area.

4.65 As mentioned previously, the current Scottish Civil Courts Review may lead to reductions in the length and cost of legal actions to gain possession of rented properties and exercise other rights.

4.66 Finally, although the incidence of landlords asking tenants to leave is currently relativelylow at one in ten, it should be noted that evidence for the review was gathered in the period up to October 2008 and financial circumstances may have caused changes since then. In particular, repossessions and evictions (whether consequent on repossessions or simply resulting from landlords' financial situation) may increase as a result of increasing economic difficulties. However, the section 11 requirement (referred to in Chapter 6) for private landlords to inform local authorities when they take court action to evict a tenant should help local authorities to take action to prevent homelessness from arising in such circumstances.

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