Scottish legislation is driving landlords out

Legislation by the Scottish government is pushing landlords out of the sector, a leading industry body claims.

According to research by Propertymark, 93% of landlords in Scotland have expressed a desire to withdraw property from the PRS because of temporary legislation introduced by the Scottish government.

The Cost of Living (Tenant Protection) (Scotland) Act placed restrictions on evictions from residential tenancies.

The act also introduced a 3% rent cap for the private rented sector which is now in place until the 30 September 2023.

The crux of the housing problem is that demand is far outstripping supply

Timothy Douglas, head of policy and campaigns at Propertymark, said: “Rent control is causing huge problems for the sector in Scotland.

“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.

“Many landlords are putting up rents between tenancies to protect against any future cost implications.”

He added: “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.”

‘Legislation is alienating landlords’

The industry body said legislation introduced by the Scottish government is ‘alienating landlords and discouraging investment in the PRS’.

The findings from Propertymark reveal 83% of letting agents saw an increase in the number of landlords serving notice to sell because of the temporary legislation.

The industry body said landlords who aren’t selling are protecting their financial position is secure by raising rents in between tenancies.

The report says 94% of agents said that their landlords are now more inclined to raise rents because of legislation – compared to 91% in December 2022.