‘Landlords have nothing to fear’ from Scotland’s rent controls plan

‘Landlords have nothing to fear’ from Scotland’s rent controls plan

0:04 AM, 3rd April 2024, About 2 weeks ago 19

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The Scottish Greens co-leader Patrick Harvie has defended the government’s new Housing Bill, which includes plans for rent control areas.

He reassured landlords offering fair-priced, high-quality housing that they ‘have nothing to worry about’.

The proposed Bill will task local authorities with evaluating its private rental market and recommending rent control measures to ministers.

Among the critics of the move is the Scottish Association of Landlords (SAL) which says that landlords will sell up and investment in rented housing will plummet.

‘Good behaviour by landlords needs to be encouraged’

Speaking on the BBC’s Sunday Show, Mr Harvie said that good behaviour by landlords needs to be encouraged within a long-term framework.

He said: “Those landlords who take pride in offering high-quality homes at a fair price, looking after the wellbeing of their tenants, should have nothing to worry about from these proposals.

“But those who want to price gouge have to recognise that that kind of practice is going to come to an end.”

He went on to say that housebuilding should not be focused on ‘maximising profit’ from building expensive homes, but on ‘social need’.

Cuts to the Scottish Government’s housing budget

Mr Harvie was pressed on comments made by Jane Wood of Homes for Scotland who has criticised cuts to the Scottish Government’s housing budget.

He replied: “The long-term track record of the Scottish Government on building affordable housing is significantly better than other parts of the UK. We want to continue that.

“If Westminster cuts our capital budget, it clearly, inevitably, has a knock-on consequence, a harmful consequence, in what we can invest in Scotland.”

Highlighting the effects on Scotland’s private rented sector

However, critics continue highlighting the effects on Scotland’s private rented sector now that the rent cap has been lifted – until the new Bill reimposes controls.

Oli Sherlock, the managing director of insurance at Goodlord, said: “We can expect to see a range of repercussions as a result. Firstly, tenants should brace themselves for a jump in rents.

“Over the last 18 months, lots of landlords will have seen their mortgage costs shoot up, so will be looking to recalibrate rental prices.

“This is likely to spark a ripple effect across the market, as renters give notice and seek out new, cheaper places to rent.”

He adds: “This will see regional price averages shift around and particularly affect demand outside of city centres.

“In addition, we may see the chatter around landlord exodus reduce – the lifting of this restriction could encourage wavering landlords to stick around and not sell up, which is positive for the market overall.”


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Comments

Reluctant Landlord

9:39 AM, 3rd April 2024, About 2 weeks ago

'fair price for high quality'... and yes dear tenants, what accommodation actually remains will be charged for accordingly.
If you can't afford it, then please write to Mr Harvie to ask him what accommodation he can provide you with instead.

A Well Behaved Landlord

10:05 AM, 3rd April 2024, About 2 weeks ago

Setting aside the obvious arguments about rent controls, it’s actually the proposed eviction process delays which will likely force me out.

Granted property is illiquid, but I always used to reason that if I needed to sell the property I might have funds in my bank account within six months.

Now with the proposals I already know I need to give three months notice for intention to sell.

But the tenant could appeal this notice to the court. Could the tenant appeal, say, on the final week before the eviction date?

How long would it take for a hearing at the court - is three months reasonable, or perhaps six if they are busy?

What if the tenant mislays some important evidence - then the hearing is delayed, by another three months?

Then the tenant states that, for example, they are a single parent living in the property as it is within a catchment area. If they are forced to move the child will have to leave their school.

This is compounded by the fact that the tenant could not afford another similar property in the area.

The court agrees, then perhaps rules that the child should finish the current academic year, in turn giving the single parent time to make suitable arrangements.

If the court ruled at the start of the academic year, then perhaps it’s a 10 month delay?

Just in this hypothetical scenario I might not be able to market my property for potentially…18 months? Two years? Is there any maximum, minimum, what is a reasonable delay, what is an unreasonable delay?

The only certainty is that I have effectively lost control over an asset that I own in favour of the government. That is what I fear.

Liam

10:10 AM, 3rd April 2024, About 2 weeks ago

There is no fair priced, high quality. We all aspire to drive a Mercedes but unfortunately some can only afford a Vauxhall. That's not to say a Vauxhall isn't safe or fit for purpose, just quality comes with a price tag.

Chris @ Possession Friend

11:07 AM, 3rd April 2024, About 2 weeks ago

What Harvie, the Greens, Labour and even the Socialist pseudo-Tories want, is to pay for a Fiesta and receive a Rolls !

This malevolent attitude drives landlords away, increasing rents they espouse to limit !
Foot - Shoot.

Reluctant Landlord

11:09 AM, 3rd April 2024, About 2 weeks ago

Harvie...

1. define 'fair priced'?
2. define 'high quality'?

PS - those who want to 'price gouge' wont find tenants so easily if they are asking too much for that they are offering, so they will have to reduce the rent to levels people can afford if they want occupants. Ergo the market will self level. No government meddling required.

John MacAlevey

11:41 AM, 3rd April 2024, About 2 weeks ago

BBC’s Sunday Show.
Scottish Greens co-leader Patrick Harvie.
Scottish Government.

Not genuine sources of truth, ignore & read/listen elsewhere.

Monty Bodkin

12:52 PM, 3rd April 2024, About 2 weeks ago

‘Landlords have nothing to fear’

-George Orwell 1984

Martin Roberts

13:19 PM, 3rd April 2024, About 2 weeks ago

To suggest house building should not be about maximising profits, but focus on social need is crackpot.

Companies have an obligation to shareholders, and how can a private builder sell houses cheaply?

Surely the obligation is on the council/government to provide social housing.

Martin Roberts

13:31 PM, 3rd April 2024, About 2 weeks ago

Or here's a thought, maybe a multi-million pound 'charity' could chip in and provide social housing.

Reluctant Landlord

14:12 PM, 3rd April 2024, About 2 weeks ago

Reply to the comment left by Martin Roberts at 03/04/2024 - 13:31
lol!

Housing 'charities' don't actually want to house anyone...that's apparently not their purpose at all. They only exist to whine about the people who do...

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