Holmes Mackillop questions pledge to allow tenants to have first refusal on landlord’s property

As the Scottish Parliament enters recess following the recent elections, Holmes Mackillop Solicitors says that many landlords will be wondering about the SNP’s pre-election pledge to allow tenants to have first refusal on the landlord’s property if it is placed on the market.

The plan had been that tenants would be given a period of time to buy the property at ‘fair market rate’. The intention is that this may help those struggling to get on the property ladder, with many tenants facing difficulties in saving for a deposit. 

John Di Paola, senior associate at Holmes Mackillop, said: “It will be interesting to see if this proposal is taken forward as there are number of questions for landlords, who must be concerned by the idea. Who will determine fair market value and what if there is a dispute about this?

“What if there is a ‘bidding war’ between multiple tenants who want to buy the property as individuals and, conversely, will this right be exclusive to the tenant on the lease or will their spouse, partner or next of kin be able to make a bid with them?”

John added that the pledge raises the question of whether all tenants should be eligible:

“If a tenant has failed to pay rent or if there have been issues with the tenant’s behaviour, then should they be able to make a bid?” he asked:

“There are an increasing number of obligations for landlords for which they should seek advice. If this pledge is taken forward in the next parliamentary term, then there will no doubt be concerns and questions from landlords about how this may work in practice.

“There is also the question of whether this presents a solution to the problem facing many tenants – that they struggle to save for a deposit. Many tenants will need a mortgage to buy the house and without a deposit, buying their landlord’s property is also unlikely to be achievable. It’s something we will be monitoring as Parliament returns later this year.”

www.holmesmackillop.co.uk

Pictured: John Di Paola