Scottish legislation drives landlords to sell up

Scottish legislation drives landlords to sell up

0:03 AM, 20th September 2024, About 3 weeks ago 1

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Legislation in Scotland’s private rented sector has led to more landlords selling their properties and has done little to improve affordability, according to a new study.

The research by Indigo House, funded by the Nationwide Foundation, reveals that 70% of landlords and letting agents lack confidence in the future of the sector.

The Scottish government plans to introduce the Scottish Housing Bill, which will impose rent controls and grant tenants the right to keep pets.

Scottish landlords selling up

According to the study, a much higher proportion of landlords plan to sell all their residential portfolio now compared to five years ago (45% in 2024 compared to 23% in 2019), and fewer said they planned on buying more properties for let (9%, down from 17%).

The study reveals that many landlords are selling up due to frustration with the Scottish government’s actions and negative rhetoric towards landlords.

However, some landlords said age was a factor in selling up, especially those who bought properties for retirement or to pass on to heirs.

One landlord told the study: “I am concerned these laws have failed the tenants, the system has failed. I just go on the advice of the agent and the agent has told me to sell up. This poor [tenant] is going to be made homeless when I sell.”

Some landlords specifically mentioned shifting their business into commercial property, and several others talked about investment opportunities elsewhere in the UK:

One landlord said: “I intend to eventually sell everything and shift from residential into commercial property, it has become impossible to do residential and not lose money. Returns are better, leases are longer, income is secure.”

Legislation to date has done little to improve affordability in the private rented sector

Joshua Davies, programme manager, at the Nationwide Foundation, says legislation is not the only answer to solve Scotland’s housing crisis.

He said: “These findings also affirm what we at the Foundation have known for many years – that problems in the private rented sector cannot be addressed in a vacuum.

“They are fundamentally tied to broader problems in the housing sector as a whole, and we need a holistic and joined-up housing strategy to provide enough diverse tenure types to meet the needs of everyone.

“What’s more, this research proves that legislation to date has done little to improve affordability in the private rented sector, and further changes are needed to deliver truly affordable homes.”


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Cider Drinker

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18:26 PM, 20th September 2024, About 3 weeks ago

Is anybody surprised that making it more expensive and more challenging to be a landlord has seen a decline in available private rental properties?

It’s also made rents rise to cover the additional costs and risks. Raising rents also increases risk (tenants more likely to default on rent, anti-landlord anger increases leading to property damage etc.,).
Meanwhile, our open borders ensures that demand for rental properties is extremely high.

There are two options to deal with the housing crisis. Either build tens of millions more homes (maybe hundreds of millions) or control population growth.

I don’t see Starmer doing the latter and we can’t possibly build sufficient homes for all those people seeking a better life in the UK.

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