Proposed Fair Rents Bill could lead to more frequent rent increases

Proposed Fair Rents Bill could lead to more frequent rent increases

9:52 AM, 9th December 2020, About 9 months ago 1

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Tenants could be subjected to higher and more frequent rent rises if the Fair Rents Bill is passed through the Scottish Parliament as planned.

In its response to the Call for Evidence on the Bill, which is calling for a rent cap on private rented properties in Scotland, Scottish Land & Estates (SLE) has said that unintended consequences of the Bill could see higher and more frequent rent rises becoming commonplace as landlords try to recoup the costs of improvement works and repairs.

Gavin Mowat, Policy Adviser at Scottish Land & Estates, said: “We do not support the call for a rent cap on private rented properties. At the moment the majority of landlords do not tend to increase rents mid tenancy. By setting out a formal process in law for rent increases, as this Bill is trying to do, then there is a real danger that landlords will look to impose annual rent increases to the maximum level to offset the future cost of maintenance and repairs. We are also concerned that the generosity we see being shown by many rural landlords who offer rent below market value to help vulnerable tenants will become less frequent as the flexibility to re-coup costs in future is removed by these proposals.

“There is already legislation and regulations in place which adequately protect both the tenant and the landlord. The Fair Rents Bill appears to be trying to solve a problem which only exists in some urban areas. It is disappointing that the very different rental picture in rural Scotland has not been considered.”

Andrew Hopetoun, Chair of Historic Houses Scotland, which represents independently owned historic castles, houses and gardens throughout Scotland, said: “A rent cap for private rented properties is likely to mean less opportunity for landlords to recover costs of mandatory requirements such as improving energy efficiency, repairs and managing the private water supply. For any landlord, these costs can be high, but for historic properties, these costs are often much, much higher and this new legislation will make it almost impossible for landlords of historic homes to recoup the costs. This could result in landlords removing their properties from the private rented sector and this could cause a shortage of rental properties in some rural areas.”

The Fair Rents (Scotland) Bill is a Member’s Bill introduced by Pauline McNeill, Scottish Labour MSP for Glasgow.



Comments

by Alan Wong

20:17 PM, 9th December 2020, About 9 months ago

If only they would leave the private rental sector alone and allow a free open market supply and demand to offer the natural balance instead of manipulating the market for private owners as they have already manipulated finance cost tax for private housing providers.


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