Expected to commence in December 2017, the Scottish Government's new tenancy regime will replace the current system of assured/short assured tenancies in favour of Private Residential Tenancies (PRTs).

The Scottish Association of Landlords (SAL) has been lobbying Holyrood for clarity on the impact the incoming legislation will have on existing tenancies. In response, the government has confirmed that no existing tenancies will be affected and will continue to be governed by the existing legislation until they are terminated by the landlord or tenant.

The new PRT legislation does not allow for a fixed period to be agreed for the tenancy. Tenants can end the lease at any time on giving 28 days' notice. Landlords are required to give 28 or 84 days' notice (depending on how long the tenancy has been in place for) and can only end the lease if one of 18 grounds for possession in the legislation apply. The legislation will also delegate power to local authorities to apply for an area to be made a rent pressure zone, limiting annual rent increases.

The new PRT regime is still a work in progress with secondary legislation yet to be finalised and approved by parliament. SAL is keeping pressure on the government to clearly define how the legislation and documentation will work in practice.

This update is an extract from the latest issue of our magazine, Deposits in Scotland, the new magazine for everyone in the Scottish private rented sector. You can view or download Deposits in Scotland for free on our website.