The private rented sector makes up a small proportion of all housing in Scotland, but it is an important part of the market. In some areas private renting provides a significant amount of permanent housing, elsewhere it is a vital short-term solution for people at various stages in their lives.
In 2007, the Scottish Government announced in Firm Foundations, that it would undertake an extensive review of the private rented sector.
This review, which includes externally commissioned research and analysis, as well as a range of analytical work carried out within the Scottish Government, has been completed. The Private Rented Strategy Group (PRS) was established to take forward the review. Details of the group's membership and minutes can be found here.
The Scottish Government aims to encourage a thriving private rented sector, which provides good quality and well managed accommodation, and in which both landlords and tenants understand their rights and responsibilities.
Initiatives to promote this include:
- Landlord registration: private landlords must register with their local authority to ensure that minimum legal requirements are met.
- Voluntary landlord accreditation promotes best practice in management standards in the private rented sector. The Minister for Communities and Sport announced in 2007 that the Scottish Government would provide start-up funding for a national voluntary landlord accreditation scheme, Landlord Accreditation Scotland, open to private landlords and letting agents across Scotland.
- Mandatory licensing of Houses in Multiple Occupation applies to houses or flats occupied by three or more unrelated people who share bathroom or kitchen facilities.
- The Repairing Standard increases legal requirements on repair and maintenance in the private rented sector, which tenants will be able to enforce more easily through the Private Rented Housing Panel.
- Provisions in the Housing (Scotland) Act 2006 would allow the establishment of schemes for safeguarding tenancy deposits. The Scottish Government is examining with stakeholders the merits and cost effectiveness of various approaches to safeguarding tenancy deposits before considering how to proceed. Information on Safeguarding Tenancy Deposits and minutes of the Working Group meetings are available to view on this website.
All private renting is subject to legislation, which varies depending on the particular circumstances of the tenancy or occupancy agreement. A number of leaflets on tenancy issues are available on this site, together with copies of forms required in connection with Assured and Short Assured Tenancies. More advice for tenants and landlords is provided on the Scottish Government's Better Renting website.
The Rent Registration Service sets 'fair rents' for pre-1989 Regulated Tenancies and provides information on rents to help determine Housing Benefit applications. The rent under other (post-1989) tenancies is for the landlord and the tenant to agree. If the landlord wishes to increase the rent during a tenancy, either the landlord or the tenant has a right to apply to the Private Rented Housing Panel to fix a market rent.
Housing Benefit and Local Housing Allowance are administered by local authorities on behalf of the Department for Work and Pensions (DWP). Please see its website for more information.