Returning EU citizens could be the biggest losers from proposed changes to the private rented sector (PRS) according to property firm DJ Alexander Ltd, part of the Lomond Group which is the largest lettings and estate agency in Scotland.

The firm says that prior to the pandemic EU nationals made up 40% of the tenants in the private rented sector and it is essential that homes remain available for these people when they return to work in Scotland.

Some of the changes, such as the proposed rent controls outlined in the Scottish Government’ consultation paper (which ends on April 15th) ‘A new deal for tenants’, are likely to result in the market shrinking and a reduction in the availability of homes for the EU workforce who are expected to return to Scotland over the next few years.

The private rented sector fulfils an essential role in providing homes for EU workers who cannot access social housing and are unlikely to buy homes as the majority want to work for a limited time in Scotland before returning to their home countries.

Scottish Government data estimated that in 2019 the official number of EU nationals in Scotland was around 234,000 with the majority of these of working age.

David Alexander, the chief executive officer of DJ Alexander Scotland, commented:

“As the pandemic recedes, we will undoubtedly see the return of tens of thousands of EU citizens keen to live and work in Scotland. These individuals will be essential in revitalising the Scottish economy and filling many of the job vacancies which currently exist.

“For EU citizens the private rented sector is, effectively, their only option for finding housing and any action which reduces the number of homes available will limit the number of them wanting to return. The knock-on impact on Scotland’s finances could be considerable with unfilled vacancies, companies unable to return to normal, and economic growth out of the pandemic restricted.

“As with all change it is the law of unintended consequences which inevitably prevails. Reducing the availability of homes for essential EU workers was not, I presume, at the forefront of the thoughts of the Scottish Government when they produced their consultation paper on the private rented sector, but the unfortunate outcome is likely to be that this group will be the most adversely affected by this change.

“The further impact of the loss of these essential workers on the Scottish economy will also be an unintended consequence which will affect us all.”