Following emergency measures introduced by the Scottish Government in the private rented sector, 85% of agents claimed to have landlords who wish to withdraw and sell their properties, according to Propertymark.
Under the new Cost-of-Living (Tenant Protection) (Scotland) Act, Scottish Ministers must now review every three months on the need for the provisions 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, and through its research found that 68% of agents have already seen an increase in notices to sell due to the temporary measures.
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.
“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.”
Propertymark also stated that the legislation changes introduced are 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.”
What’s more, 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 of the 28th of October to the 31st of December 2022, will be laid before the Scottish Parliament no later than the 14th of January 2023.
Douglas added: “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.
“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.”
