New policies outlined in the Draft Rented Sector Strategy, unveiled by the Scottish government yesterday, could have ‘detrimental’ impact on the private rented sector north of the border, according to Propertymark.
The plans announced by the Scottish government, which include fresh restrictions on evictions during winter and the development of a new national system of rent controls, are already proving unpopular with buy-to-let landlords
The plans also include minimum standards for energy efficiency and could give tenants greater flexibility to personalise their homes and keep pets.
Proposals were also outlined to increase penalties for illegal evictions and stronger enforcement, restricting evictions during winter, designed to offer tenants greater flexibility to personalise their properties and keep pets, and introducing a new housing standard.
The Scottish government also proposes the introduction of a private rented sector (PRS) regulator, which it said would help uphold standards and ensure the system is fair for both landlords and tenants.
According to the Scottish government, the results of the public consultation will help shape the final version of the document which is to be published next year.
Daryl McIntosh, policy manager at Propertymark, said: “Whilst we support the right to an adequate home and the Scottish Government’s commitment to elevate standards and quality in the private rented sector, we fear the policies outlined in the Draft Rented Sector Strategy will have unintended consequences and ultimately be detrimental to tenants unless there is a balance with landlords’ rights.
“We have real concerns that the proposed system of rent controls will undermine the viability of the private rented sector and do nothing to tackle the perceived affordability issues, while further regulatory burdens will inevitably continue to force landlords to exit the market.
“If the Scottish government wants to ensure a healthy supply of good quality, affordable and secure homes, it must recognise the value and significance of the private rented sector and actively encourage more investors to provide homes. Only by increasing and sustaining investment in the sector can it achieve its aims, and the Strategy as drafted falls far short of providing the certainties and incentives that are needed.”
BTL landlords could flee the market if rent controls are introduced
More foot shooting going on !
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Politicians are like spoilt children. They just can’t help themssleves pushing the limits until they face punishment. Being Scottish just means they want to be naughtiest first. If these children are of an age where they can read then they should look at the Rent Act 1977 and understand the impact it had on the private rented sector demolishing it completely. Speak with property professionals that were around at the time in the 1980’s they will able able to explain the effects of rent control in simple language that even policians may understand. It resulted in a position where you had two choices; you either took council housing with its very limited supply (now been asset stripped and even less supply) or you had to have a mortgage and buy your own home (great for many but not all). It totally screwed up mobility of the labour force making it difficult to change jobs and move to where the work is. However our politicians are too thick to understand the impact of their own political utopia. The politicians need to wake up and smell the coffee they are biting the very hands that provide the living accommodation they CAN NOT AFFORD TO PROVIDE. It’s time to grow up.
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Yes how well I remember. Every 2 years one was supposed to go to a meeting with the Rent Officer to agree a new “Fair Rent”.
This was based on the premise of supply and demand being equal. A total waste of time charging clients to attend on their behalf as no matter what arguments were put forward the Rent Officer had already made up his mind anyway. (usually an increase of £2.00 p.w.)
It was known by all that no one in his right mind would buy a property to let out. Apart from the above, when inspecting the property the Rent Officer would often make a list of repairs and improvements that should be carried out as a condition of the new “Fair Rent” increase!
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Yes Michael138 you are absolutely correct. A typical rent in SE London was around £10.00 pw. At the time the cost of replacing a couple of slipped slates about £25.00. Not quite sure who it was fair to. Property maintenance was not possible so again harmed tenants and meant no one would let a property other than to Company’s who were outside of the Act as furnished lettings.
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I agree 100%!
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Irony at its best and free economy at its worse.
Ironic, isn’t it; applying rent controls will put pressure on rents going up, necessitating the need for rent controls!
I think this exposes a Labour Party plot. If you cannot beat the Conservatives, join them!
Plan for the day:- Watch Catch 22 and The Manchurian Candidate; great films.
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No kidding ……..
Draft Rented Sector Strategy will have unintended consequences and ultimately be detrimental to tenants unless there is a balance with landlords’ rights.
…….undermine the viability of the private rented sector
Or put it another way, the SNP and Welsh Labour are nationalising PRS to their own ends. Being a private sector …. investors will leave the market.
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Where Scotland and Wales lead England will surely follow (unless it’s something that costs money like free prescriptions, social care and university fees), Landlords have been set up as villains being portrayed as rich exploiters, stealing from the poor like the sheriff of Nottingham and now Robin Hood in the form of the Government is coming to the rescue. This is basically a vote winning tactic designed to get the huge number of PRS tenants to vote for the Government. Never mind the fact that the PRS is so huge because of failures by Governments of all colours over decades to provide affordable homes and homes for social rent.
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