Tribunal report shows the private rented sector is working well

Scotland has a sensible approach to resolving disputes that benefits both landlords and tenants, says ​​David J Alexander.

The latest annual report by the First-tier Tribunal: Housing and Property Chamber (the Tribunal) covering the period from 1April 2023 to 31 March 2024 has just been published and provides a snapshot of housing-related disputes across Scotland.

The Tribunal was established on 1 December 2016 to provide a specialised, accessible alternative to the Sheriff Court for resolving private housing disputes.

The Housing and Property Chamber took over functions from the former Private Rented Housing Panel and Homeowner Housing Panel with its jurisdiction expanding significantly on 1 December 2017 to include Private Residential Tenancies and other private rented sector disputes.

It was created to simplify the justice system, making it faster and cheaper than the court system and offers a specialist forum for landlord-tenant disputes, including repairs, illegal evictions, and letting agent regulation.

The chamber is designed to provide a “less adversarial approach” where legal representation is not always necessary, providing a tailored, expert-led process for housing issues

The number of applications in the current report increased by 10 per cent on the previous year’s numbers to 5,078 of which 2,687 (53 per cent) were evictions. While figures are not collected on the grounds for eviction, the report states that “it is thought that there has been an increase in eviction applications on the grounds that the landlord intends to sell the property”.

While most applications received (83 per cent) involve the private rented sector (PRS) the number of cases being brought to the Tribunal represents just 1.2 per cent of all landlords in the PRS in Scotland.

What is striking is how few applications are made for what most would regard as the historically fundamental reasons for appealing to the tribunal. Tenancy deposits and property factor issues were both on 303; repairs account for just 297 (mostly down to third-party applications by local authorities); letting agents just 75; and rent assessment applications were only 13 across the 12-month period.

What these figures show is a relatively benign situation between landlords and tenants. The majority of evictions are not because of rent arrears or difficulties with tenants but because landlords are seeking to sell or because they want to move into the property for their own or a relative’s use.

Areas where one would assume there could be contentious issues such as repairs, deposit issues, or rent assessments represent just 0.2 per cent of the total number of properties in the PRS, which is a sign of a sector working efficiently, effectively and for the mutual benefit of landlord and tenant. This report is a remarkably positive indication that the system is working well and that the few who require access to the facilities of the Tribunal can do so but the vast majority of those engaged with the PRS in Scotland don’t need it.

The introduction of the tribunals was greeted with scepticism by some in the private rented sector, but it is clear that it has provided a sensible and productive approach to resolving disputes. The more we can encourage greater satisfaction with the PRS the better as it is to the benefit of everyone that we have a system that is transparent, fair, prompt, and provides a balanced approach acceptable to all involved.