Letting agents in Scotland are strongly opposed to government plans to introduce rent controls and end the “no fault” ground for terminating tenancies.
Trade body Letscotland was responding to the Scottish government’s consultation on a new tenancy regime for the country.
The ending of the “no-fault” ground would mean that at the end of the initial six-month period of the lease, there would be no grounds for the landlord bringing the tenancy to a conclusion without invoking one of the mandatory grounds, including anti-social behaviour.
Letscotland said the removal of the “no fault” ground could lead to landlords reconsidering their investment, risking a heightening shortage of supply in the Scottish private rented sector.
Letscotland also rejected proposed rent controls, saying they have failed in the past, are not necessary now, and will fail in future if introduced.
The Scottish Government consultation, which also proposed mandatory longer-term tenancies, closed at the end of December and the outcome will be watched with interest elsewhere in the UK.
In London, mayor hopeful Dianne Abbott has tabled an Early Day Motion calling for rent controls and made them part of her election campaign.
She would use council tax bands to control rents, with monthly rents not allowed to be more than half annual council tax.
The reforms proposed in Scotland are also in line with what Labour would do at Westminster if it wins May’s general election.
Comments (4)
We are at a time in our life when politicians abuse their positions for personal agenda and views and do what they think will get them votes. For far too long they have developed a strategy of being untouchable. Some heads need shaking comes to mind.
Is it just me or does anyone think this proposal of blanket rent controls across London is insane? Rental prices would no longer match sales prices, leading to a mass exodus of Landlords and rented accommodation across London…the economics of it don't bear thinking about. Surely this is common sense for any right-minded person to see? I understand that it's just a 'first proposal' to get the ball rolling, but it's not a coherent or constructive one. As Will said, a nil understanding of the property markets.
So effectively Diane Abbott is proposing a 200% tax on property. So ever greedy councils and politicians feel it is reasonable that a Landlord with a major financial investment in their asset can only get a return of 50% of what the councils take for no investment. This is whilst landlords have all additional liabilities for repairs, insurance and health and safety stuff. Investors will withdraw from the market so tenants are the ones who will really suffer. Do these idiots not study history? I recall the effects of rent control in the 1970's and it was impossible to rent property and those rented prior to controls and had security of tenure had their homes fall into disrepair as the landlords could not afford to maintain their properties!!
This is Vote catching electioneering based on their being more tenants than landlords! This shows a nil understanding of the property markets. More worryingly the mentality of those in power!
The vast majority of letting agents and landlords in Scotland share concerns about lack of housing supply and tenant security of tenure. Measures required to address these deep seated issues need to represent rather more than robbing Peter to pay Paul. Measures that will work need to include tax incentives and an additional tenancy model that offers others safety measures and incentives to landlords who may be willing to take a long term investment view and extend additional security of tenure benefits to tenants.