Rural landlords in Argyll and Bute face ‘Myriad of challenges’

Rural landlords in Argyll and Bute face ‘Myriad of challenges’

0:02 AM, 2nd September 2024, About a month ago 1

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The alarm has been raised on the potential for a deepening rural housing crisis in Argyll and Bute, with significant issues being faced by landlords in the region.

A report highlights the unique challenges faced by rural landlords, including difficulties in finding tradespeople and the rising costs of compliance with new regulations.

These pressures have led many landlords to question the viability of continuing to operate in the private rented sector (PRS).

The report, authored by Dr Andrew Robert Watson, focuses on the composition, challenges and future intentions of landlords operating in the area.

He said: “PRS landlords play a critical role in Scotland’s housing provision.

“However, in recent times, their investments have been subject to a myriad of challenges including rising costs, tax changes and an increasing legislative burden leading to many leaving the sector or considering doing so.”

He adds: “For rural landlords, the challenges are more acute and more numerous. For example, rural landlords often struggle with maintenance and compliance requirements due to a shortage of rural tradespeople.”

Landlords report zero or negative returns

Key findings from the report, which was commissioned by Argyll and Bute Citizens Advice and Argyll and Bute Council, include:

  • Financial strain: A significant number of landlords are reporting zero or negative returns on their investments, with many struggling to maintain their properties due to rising costs and a shortage of tradespeople
  • Aging landlord population: With 39% of landlords aged 65 or older, there are concerns about the potential impact of retirements on the rental market
  • Negative perception of government support: Many landlords feel that the Scottish Government does not understand the challenges they face, with 62% believing the current legislative environment is unsupportive of PRS investment
  • Growing intent to sell: 33% of landlords plan to sell their properties in the coming years, which could exacerbate the existing housing shortage.

Immediate action to support landlords

Without immediate action to support landlords, the report warns that the already critical housing shortage in Argyll and Bute could worsen, leaving many tenants at risk.

With one in 10 households in the region relying on the PRS for their home, the report offers recommendations to the Scottish Government including working in partnership with landlords, safeguarding existing tenancies and improving the sector.


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Cider Drinker

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14:25 PM, 2nd September 2024, About a month ago

The issues faced by landlords in Argyll and Bute are similar to every region of the U.K.

𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐬𝐭𝐫𝐚𝐢𝐧. Many landlords bought property or released equity when interest rates were low and house prices were high (compared to average salaries). Despite higher pay settlements, house prices are cooling due to massive demand caused by net migration.

𝐀𝐠𝐢𝐧𝐠 𝐥𝐚𝐧𝐝𝐥𝐨𝐫𝐝 𝐩𝐨𝐩𝐮𝐥𝐚𝐭𝐢𝐨𝐧. I have a continuity plan. It contains everything that my benefactors will need in order to take over my portfolio. Sadly, they have all said that they don’t want to be landlords (and who can blame them?). Therefore, my intention is to sell as tenants vacate and not o increase rents to encourage them to leave.

𝐆𝐫𝐨𝐰𝐢𝐧𝐠 𝐢𝐧𝐭𝐞𝐧𝐭 𝐭𝐨 𝐬𝐞𝐥𝐥. It should set alarms bells ringing when one on three landlords plans to sell. A clear indication that taxation and legislation has gone too far. 𝐇𝐨𝐰𝐞𝐯𝐞𝐫, selling doesn’t in itself ‘ 𝒆𝒙𝒂𝒄𝒆𝒓𝒃𝒂𝒕𝒆 𝒕𝒉𝒆 𝒆𝒙𝒊𝒔𝒕𝒊𝒏𝒈 𝒉𝒐𝒖𝒔𝒊𝒏𝒈 𝒔𝒉𝒐𝒓𝒕𝒂𝒈𝒆’. The houses still exist but they will be used by owner-occupiers and the lowest paid, unable to save a deposit or secure a mortgage, will be consigned to temporary accommodation forever, at huge expense to the taxpayer.

And all because the government refuses to control net migration.

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