Worrying new research shows that a significantly high number of letting agents in Scotland have reported that landlords north of the border have expressed a wish to sell up following the introduction of emergency measures introduced by the Scottish government in response to the impact of the cost-of-living crisis on those living in the private rented sector.
Under the Cost of Living (Tenant Protection) (Scotland) Act, Scottish Ministers must report and review every three months on the need for the ssssssssssprovisions in the Act to either be continued or to end, based on the evidence available at the time.
Propertymark has expressed immense concerns about how the measures are affecting those working in the private rented sector in Scotland, detailed in its response the Scottish Government’s call for evidence.
Feedback from Propertymark members in Scotland found 85% of agents had landlords who had expressed a wish to withdraw from the private rented sector and sell their properties and perhaps more worrying, 68% of agents have already seen an increase in notices to sell due to the temporary measures.
Propertymark believes that the legislation changes introduced is disproportionate to the scale of the problem in Scotland, with many of its member agents saying that landlords did not raise rents in the last year.
One of its agents said, “many landlords who have not increased rent and had properties below market value for years are now considering this position and feeling they must raise to market rent from now on and keep up with annual increases, whereby before they had not considered it”.
Some 83% of those that Propertymark surveyed stated that they would be inclined to increase rents as a result of the Act as landlords want to have reassurance that they can cover any rental loss as well as rising cost of maintenance and repairs, utilities and mortgage interest hikes.
The first report, covering the period 28 October to 31 December 2022, will be laid before the Scottish Parliament no later than 14 January 2023.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “The measures introduced under the cost of living legislation are disproportionate to the scale of the problem and have only driven more landlords out of the sector. Feedback from Propertymark members shows that because of the measures introduced by the Scottish Government the desire for landlords to remain in the sector and increase the number of homes for people to rent is stalling.
“Alarmingly, the temporary nature of the legislation means that the impact is not fully realised yet but if the changes are extended then there will be greater consequences. The private rented sector is a key solution to resolve the housing crisis but if the Scottish Government continue with policies that disincentive landlords this will only make the situation worse.”
Everyone is watching
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
The longterm implications are dramatically worse for tenants as the stock levels will drop and demand will be higher than ever, inevitably the rents will go up and up. Can no one in the SNP or Green party see this? So short sighted.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Might I suggest that trying to bail out whilst capital values drop and rental income is increasing is not a good idea.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Rentals are the thing on PIE today but no surprise as the industry is in meltdown. Sturgeon and Co haven’t a clue what they are doing and clear for all to see. Going after the landlord, when the fault is inside their own office is obscene.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
It is to be hoped that the Government in England is taking note of what is happening to the rental market as a result of the actions of the devolved Governments in Scotland and Wales. What the Renters Reform bill is proposing will be disaster enough, but bolting these additional “reforms “ onto it will just about kill off the PRS certainly as far as prospective and evicted tenants are concerned.
The rents for what is left will be sky high and prospective tenants will have to jump through hoops to even be considered, even to the extent of stumping up a few month’s rent in advance. For those landlords willing to risk benefit tenants, at the very least tenants will have to arrange for housing benefit to be paid direct to the landlord in every case with no exceptions.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register