Rents Frozen In Scotland From Today

AJRBADGER

Will this legislation usurp what is written in contract?

I rented my place in January before Covid to move in with my girlfriend. I was stung with a bad tenant who refused to pay when our government passed the Covid Scotland Bill. Nigh on a year of lost rent when they stopped paying, and try getting a single mum out of a property during covid times.

I've a new tenant moved in, however we are relying on selling this flat as we need the money for our own move. We have found renting the flat to be not worth the hassle.

Literally had the conversation on Friday with the letting agency about preparing notice, then this was announced out of nowhere. So would like to know where I stand should the tenant dig their heels in. The contract states 80 days notice, and we intend to still serve it.

Sarah1Mitty2

ProDave said:

Sarah1Mitty2 said:

housebuyer143 said:

Crazy. I sold my rental in Wales last year after the covid ban made me realise how little power I had over my private asset. 

The Welsh government will likely follow if Scotland do this and it will be the final nail in the rental sector. 

With interest rates soaring for landlords, how are they proposing that they remortgage or afford payments if the rent does not cover it 

Cut back on holidays, phones, expensive coffee out?

You mean run the rental business at a loss and subsidise it from other income?

Yes, if you want to keep the business going and you hit a difficult patch that is what you do, it is a "business" after all, not a free lunch? That is a mistake I think a lot of, especially recent, landlords have made in their approach to running a rental business.

Sarah1Mitty2

housebuyer143 said:

ProDave said:

Does a "ban on evictions" mean I can't serve notice to end a tenancy?

I am hoping I can still serve notice and it would only become an issue if the tenant did not pack up and leave and it had to go to a tribunal for an eviction order?

If the ban is for "winter" then March is the start of Spring, so I could wait until then for an eviction order?

This new legislation has not come into force yet, it is only proposed (but probably will be passed)  so if i serve notice right now, would notice serve now be exempt from this ban as the intention had been stated before the law changed?

No one knows anything but I can imagine the Scot government will see this rush to serve evictions from a mile away and close the loophole....
Serve the notice and see what happens if you need the house back. 

Why a rush? If BTL is now a bad business to be in, and FTB are finding it a lot harder/more expensive to get mortgage loans, who on earth are they going to sell to?

housebuyer143

Sarah1Mitty2 said:

housebuyer143 said:

ProDave said:

Does a "ban on evictions" mean I can't serve notice to end a tenancy?

I am hoping I can still serve notice and it would only become an issue if the tenant did not pack up and leave and it had to go to a tribunal for an eviction order?

If the ban is for "winter" then March is the start of Spring, so I could wait until then for an eviction order?

This new legislation has not come into force yet, it is only proposed (but probably will be passed)  so if i serve notice right now, would notice serve now be exempt from this ban as the intention had been stated before the law changed?

No one knows anything but I can imagine the Scot government will see this rush to serve evictions from a mile away and close the loophole....
Serve the notice and see what happens if you need the house back. 

Why a rush? If BTL is now a bad business to be in, and FTB are finding it a lot harder/more expensive to get mortgage loans, who on earth are they going to sell to?

BTL isn't always a bad buisness but not being able to have control of your private property is not right. It will rightly will make those who were thinking of selling up or evicting their tenants in the near future speed up the timeline. 

You say a business like any other should make a loss if they want to keep it going and fair enough, but these new rules are forcing those that do not want to keep going for whatever reason, to be unable to get out of it. 

Rent increase ban maybe, but an eviction ban isn't the way to go. 

ProDave

It has been clarified from the horses mouth, that the rent rise and eviction ban will last "until March".  If we assume that s the end of March, then worst case we should be able to join the queue for an eviction notice on 1st April.

AJRBADGER

Does that include a ban on evictions in order to sell the property, even if the notice period is written in the contract?

The rent freeze doesn't bother me personally (although can see how others are effected), but I absolutely need to sell this flat ASAP as I need the capital and cannot (as easily) do that if there is a tenant in there.

Information is sparse. 

ProDave

AJRBADGER said:

Does that include a ban on evictions in order to sell the property, even if the notice period is written in contract?

The freeze doesn't bother me, but I absolutely need to sell this flat ASAP.

Information on this is sparse. 

That is why we want our tenant out, to sell what was formerly our family home.  I have not found any details yet, and if it is relevant ours is a short assured tenancy not the new version.

Sarah1Mitty2

AJRBADGER said:

Will this legislation usurp what is written in contract?

I rented my place in January before Covid to move in with my girlfriend. I was stung with a bad tenant who refused to pay when our government passed the Covid Scotland Bill. Nigh on a year of lost rent when they stopped paying, and try getting a single mum out of a property during covid times.

I've a new tenant moved in, however we are relying on selling this flat as we need the money for our own move. We have found renting the flat to be not worth the hassle.

Literally had the conversation on Friday with the letting agency about preparing notice, then this was announced out of nowhere. So would like to know where I stand should the tenant dig their heels in. The contract states 80 days notice, and we intend to still serve it.

Where it looks like you stand is that you can serve notice after this "emergency" measure ends.

AJRBADGER

ProDave said:

AJRBADGER said:

Does that include a ban on evictions in order to sell the property, even if the notice period is written in contract?

The freeze doesn't bother me, but I absolutely need to sell this flat ASAP.

Information on this is sparse. 

That is why we want our tenant out, to sell what was formerly our family home.  I have not found any details yet, and if it is relevant ours is a short assured tenancy not the new version.

I cannot see how the government can effectively change the terms of a private contract, especially without warning. This came out of the blue this morning - infact a similar proposal by Labour was rejected earlier in the year, so it makes it more surprising. 

We are self building, and we are going to need the capital to stop the project grinding to a halt.

We are also effectively homeless, living in a static caravan. Which I would like to not be.

The selling market is warm but cooling, will it still be warm in March?

Like yourself I need some answers as this potentially has a major financial impact.

ProDave

AJRBADGER said:

ProDave said:

AJRBADGER said:

Does that include a ban on evictions in order to sell the property, even if the notice period is written in contract?

The freeze doesn't bother me, but I absolutely need to sell this flat ASAP.

Information on this is sparse. 

That is why we want our tenant out, to sell what was formerly our family home.  I have not found any details yet, and if it is relevant ours is a short assured tenancy not the new version.

I cannot see how the government can effectively change the terms of a private contract, especially without warning. This came out of the blue this morning - infact a similar proposal by Labour was rejected earlier in the year, so it makes it more surprising. 

We are self building, and we are going to need the capital to stop the project grinding to a halt.

The selling market is warm but cooling, will it still be warm in March?

Like yourself I need some answers as this potentially has a major financial impact.

From one self builder to another, it was the inability so sell our house 6 years ago that made us let it (after a false offer by the now tenant) and caused is to have a very slow very stressful "build as you earn" self build.

If I knew what I know now, particularly the lies we have been told I would necer have let the property and would never do so again.