There is growing concern for the private rented sector (PRS) in Scotland, according to new research from the UK’s professional body for letting agents, Propertymark.
While landlords are unable to evict tenants in many circumstances as the Cost of Living (Tenant Protection) (Scotland) Act is extended, those with tenancies naturally coming to an end are now more likely to sell.
The research found that 94% of letting agents reported an increase in investors choosing to get rid of their properties, rather than provide a home for a new tenant.
In December 2022, Propertymark released its first report, which showed that 69% of letting agents had seen an increase in the number of landlords serving notice to sell because of the temporary measures; however, in the most recent report the figure rose to 83%.
Those not selling were securing their future financial position by raising rents in between tenancies; when asked, 94% of agents said landlords were inclined to do this, compared with 91% in December 2022.
Propertymark said that rather than solve supply issues in the PRS in Scotland, emergency legislation was alienating landlords, discouraging investment in the sector, thereby inhibiting supply and causing rents to rise even faster.
Of all the notices served to tenants, 67% did not meet the exemption criteria and are awaiting processing from October 2023. This was up from 44% in the last report.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “Rent control is causing problems for the sector in Scotland and we know from our member agents that as a direct result of the Cost of Living legislation rents and costs are now being more heavily scrutinised by landlords with many putting up rents between tenancies to protect against any future cost implications.
“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.”
