Leases (Automatic Continuation etc.) (Scotland) Bill: Financial Memorandum

Overview

About the Bill

Under this Bill, certain types of commercial lease would continue automatically after the date they would otherwise have ended (the “termination date”). To end the lease on its termination date, the landlord and tenant must both agree that it will end then, or either the landlord or tenant must give notice. The Bill sets out rules about what the notice must contain, when it must be given, how it can be given, and situations when notice can be withdrawn. The proposed legislation will replace the current law for automatic continuation of leases, which is known as “tacit relocation”.

The Bill also sets out rules for how leases end, including:

• how to determine the date of entry and duration of a lease when it is not clear;
• that all parties to a lease must provide an address in the UK where certain documents can be sent to them;
• updates the rules around a landlord ending a lease early using a process called “irritancy”, (normally as a result of the tenant breaching the terms of the lease) when there is a standard security (a mortgage) over the lease;
• allowing for repayment of rent or other payments after the end of a lease when those payments were made in advance and cover a period after the end of the lease.

Current Status of the Bill 

This Bill was introduced in the Scottish Parliament by the Cabinet Secretary for Justice and Home Affairs on 11 December 2024.

Read and find out more about the Bill: Leases (Automatic Continuation etc.) (Scotland) Bill.

Stage 1 

The Delegated Powers and Law Reform Committee has been designated as the lead Committee for the Bill. A separate call for views on the Bill’s policy provisions will be issued by the lead Committee and published on this consultation platform.

Financial Memorandum 

As with all Bills, the Finance and Public Administration Committee invites written evidence on the estimated financial implications of the Bill as set out in its accompanying Financial Memorandum (FM).

Read the FM published alongside this Bill.

Making a Submission

Before making a submission, please read our Privacy Notice about submitting your views to a Committee. This tells you about how we process personal data. 

Please note that in most cases your submission will be published on the Scottish Parliament's website and may be quoted in the Committee's report or in Committee meetings (which are public and broadcast). 

Please use the Questionnaire provided for your submission:

1. Did you take part in any consultation exercise preceding the Bill and, if so, did you comment on the financial assumptions made?  

2. If applicable, do you believe your comments on the financial assumptions have been accurately reflected in the FM?  

3. Did you have sufficient time to contribute to the consultation exercise?

4. If the Bill has any financial implications for you or your organisation, do you believe that they have been accurately reflected in the FM? If not, please provide details. 

5. Do you consider that the estimated costs and savings set out in the FM are reasonable and accurate?  

6. If applicable, are you content that your organisation can meet any financial costs that it might incur as a result of the Bill? If not, how do you think these costs should be met?  

7. Does the FM accurately reflect the margins of uncertainty associated with the Bill’s estimated costs and with the timescales over which they would be expected to arise? 

The deadline to submit your views is: Friday 7 March 2025.

We welcome written views in English, Gaelic, Scots or any other language. Due to the time required to process and analyse evidence, late submissions will only be accepted with the agreement of the Committee Clerk.