Coronavirus (Scotland) Act 2020 – Residential and Commercial tenancy update

In response to the havoc caused by COVID-19 the Coronavirus (Scotland) Bill was passed by the Scottish Parliament on 1st April 2020. The emergency provisions are expected to come into force this week through Royal Assent of the Coronavirus (Scotland) Act 2020 (the “Act”).

The Act introduces a raft of substantial but temporary changes to multiple devolved areas of current policy with the aim of easing pressure on both public and private sectors. The temporary changes are set to expire in 6 months (30 September 2020) however Scottish Ministers are required to review this timeframe and have the power to extend the expiry date up to 30 September 2021 if need be.

The Act introduces temporary changes (amongst others) to residential & commercial tenancy law.

Residential Tenancies

The following are the main changes you should be aware of:

• The Act will extend the minimum notice period required for most types of private residential tenancy evictions to 6 months, except in limited circumstances.
• The First Tier Tribunal must consider all eviction grounds on a discretionary basis where once they were on a mandatory basis. That means the personal circumstances of the parties must be taken into account including the impact of COVID-19 before an eviction order will be made.
• All eviction actions with the First Tier Tribunal or Sheriff Court have been postponed. Cases will likely restart in June 2020 but that is subject to change.

Commercial Tenancies

The changes are not confined to residential lets. The following main changes come in to play with commercial tenancies:

• The period of notice for termination of a commercial lease for non-payment of rent by a tenant has been extended from 14 days to 14 weeks.
•  The Scottish Government can extend the 14 week period further if required.

These changes will no doubt make recovering possession of property harder for the foreseeable future.

If you have any questions, then please contact Scott Runciman (srunciman@gilsongray.co.uk)

The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any of the information contained in this blog, please seek specific advice from Gilson Gray.