Concern is continuing to mount in Scotland as the ban on the “no fault” ground for taking back possession of rental properties gets closer to becoming reality.
The Scottish Government – increasingly influential as far as the outcome to next week’s general election is concerned – has committed itself to putting the ban into new legislation this autumn.
It will mean that landlords can no longer get their property back simply because the tenancy has reached the end of its term.
But Ewan Foreman, managing director of Edinburgh agent 1Let, said the abolition of the “no fault” ground will lead to great difficulties.
He said: “How will a landlord give a tenant – for example, a student starting a new academic year or a visitor to the Edinburgh Festival – advanced entry date certainty, and at the same time extend continued right of occupation to the current tenant?”
He raised other points:
- How will the Scottish Government stop a landlord imposing a rent increase in order to force repossession?
- How will the Scottish Government stop the private rented sector moving increasingly up-market – which is already a problem – as landlords become more risk averse?
- How does the removal of no-fault increase property supply and therefore tenant choice?
Foreman said: “With the Scottish National Party hoping to have a much louder voice at the Westminster table, have the Scottish Government got it right when it comes to their proposals for the PRS in Scotland?
“Is housing minister Margaret Burgess (SNP) correct in saying they will inspire consumer confidence, provide safeguards and deliver a simplified system?
“Many in the industry think not.”
Foreman said that in a consultation by the Scottish Government, only 22% of responses were properly completed. Of those that were, 18% supported the removal of the no fault ground and 79% of respondents were against it.
However, he said an e-petition changed support for no-fault removal to 81%, which the consultation described as a “clear majority”. But Foreman said many had simply ticked a box and that that it was unclear if the signatories understood what they were signing.
Foreman said there was a question mark as to the extent to which the consultation had been managed by the Scottish Government.
As well as abolishing the no-fault ground, the Scottish Government is also proposing the introduction of rent controls and a new repossession tribunal.
A second consultation into proposed reforms is now taking place, but it makes clear that the government’s decision to abolish the no-fault ground is non-negotiable. The Scottish Government has said it is “no longer seeking any further views”.
Foreman said that while the reforms will “comprehensively fail to deliver PRS improvement”, politicians will no doubt describe it as the promised land.
If these proposals go through, who will the politicians blame as the supply side in the PRS starts to dry up ? The agents !?
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I always asked why we in England were not allowed to vote to get rid of Scotland in the referendum!
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I can’t blame some for thinking this way but there are many many Scots who are strongly against separation … in fact in the referendum we were the majority!
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This looks dangerous, I expect with new investment proposals mortgage lenders will run a mile. Who would blame landlords exiting the market ASAP as soon as their tenant give notice to quit. There will be far safer and less riskier havens for your money in the property market over the border in England.
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This ridiculous Scottish Government is hell bent on choking the life out of private landlords with too much draconian legislation. Landlords are already bailing out of the market and this will only lead to a greater shortage of property. The risks for many are simply getting too high!!
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Brocket, It is not just the SNP who want to wreck the market. Labour, The Greens and Liberals all also want rent control and longer tenancies. It is popular to promise such things when there are more tenants than landlords. Many tenants will not realise the impact of such policies on investors and landlords. It scares me as someone who managed property in the 1970’s & early 80’s. I recall the amount of controlled rent and cost of repairs in outer London. It would cost about £35-40 to replace a few roof slates at that time and the rent on a 4/5 story Georgian house in Greenwich under rent control was £11-15 per week. I think our politician need to take some history lessons!
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Its all down to the fact that no government has kept pace with the need for social housing and it is a cost effective solution for them to use the private sector to provide the needs they should be supplying. Until they start to build their own houses, it will get worse?
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