Research from Propertymark, the UK’s professional body for letting agents, reveals that emergency measures in Scotland’s private rented sector are causing an increasing number of landlords to sell their properties.
The Cost of Living (Tenant Protection) (Scotland) Act’s extension prevents evictions in many situations, leading to 94% of letting agents reporting a rise in investors choosing to sell rather than provide a home for new tenants.
Propertymark’s report in December 2022 showed 69% of letting agents saw an increase in landlords serving notice to sell due to temporary measures.
In the latest spring report, the figure has risen to 83%. Landlords who aren’t selling are raising rents between tenancies, with 94% of agents reporting this tendency, up from 91% in December 2022.
The emergency legislation seems to be alienating landlords, discouraging investment in the sector, and limiting supply, leading to faster rent increases.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Rent control is causing problems for the sector in Scotland… The crux of the housing problem is that demand is far outstripping supply, but this legislation is counterproductive for tenants, pushing landlords out of the sector and leaving little choice for those looking for a rented home.”
