Scottish rent costs rocket amid the very idea of Rent Controls

by Property 118

3 weeks ago

Scottish rent costs rocket amid the very idea of Rent Controls

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Scottish rent costs rocket amid the very idea of Rent Controls

44% of Scottish tenants saw their rent costs rise in January, a considerable contrast to the national average of 19%, ARLA Propertymark reveals.

The findings come following the introduction of the new Private Rented (Tenancies) (Scotland) Act on 1st December 2017, highlighting a market reaction to indefinite tenancies and the potential for rent controls.

David Cox, Chief Executive, ARLA Propertymark comments:

“Rent controls have a history of dramatically deteriorating property conditions as landlords struggle to meet mortgage payments in addition to maintenance costs. However, it seems the very idea of these controls – and open-ended tenancies – is now affecting rent prices for tenants; in anticipation, landlords are raising rents to make sure they can make ends meet, should they be introduced.

“It’s now been two full months since this form of new Private Residential Tenancy came into force in Scotland and while in December, just over a third 36% of agents witnessed rent hikes, January’s results show a much larger swing.

“For the sake of the Scottish rental sector we hope this isn’t a growing trend, but while rent controls are on the agenda, it’s just a waiting game to gauge how the market reacts”



3 weeks ago

Fee ban?

Paul Kaye

3 weeks ago

The government are clueless regarding BTL
It is time they appreciated BTL is a business.
All business is allowed to deduct expenses finance or otherwise and allowed to pass on extra costs.
If government keep adding costs onto Landlords,this will result in increases in rents!
I know the government are a bunch of clowns who will do more harm than good
but for goodness sake have an ounce of sense!!!!!!!!!!!!!!!

Ken Smith

3 weeks ago

Well done to those who have raised their rents. We have to flex our collective muscle if we are to combat all these threats.

Any dirty tricks that we have to produce is simply a result of us having to do so in order to fight back against the barrage of dirty tricks coming our way.

The governments of the day, whatever colour, need to be careful what they wish for. I will be out of this game in 5 years anyway - and will be evicting many decent people on my way out - thanks to the government/banks trying to screw us.

I have evicted 31 people from 12 houses in just under 4 years. I have disrupted more lives than that as children are forced to live away from close family etc and adults travel further to work etc. My cash pile grows as my headaches decrease.

I must admit to banging up my rents now too and explaining exactly why to tenants. 2 families have also left as a result. However, as I'm selling up anyway and am not bothered who leaves. They have played into my hands by giving one months notice. The sooner the better.

Those who stay are paying 30% more than 3 years ago. If they dont like it - then they can leave and find somewhere else as good for less money.

My properties are immaculate and well maintained - I am charging accordingly.

Bring it on.....

Ian Narbeth

3 weeks ago

Reply to the comment left by Ken Smith at 01/03/2018 - 12:08
Your attitude is not that of most landlords and certainly not of most on this forum.

We try to look after our tenants and certainly do not boast about evicting people and disrupting their lives nor do most of us just "bang up" our rents. It is precisely this sort of behaviour and these sort of comments that get landlords a bad name. By all means explain to politicians the consequences of their ludicrous policies but don't revel in the discomfort of people less fortunate than yourself.

Luke P

3 weeks ago

Reply to the comment left by Ian Narbeth at 01/03/2018 - 12:50
I feel somewhat similar to Ken, Ian. It's sad for the tenants, but simply not my problem. I have tried and tried, but the government are backing us into a corner and they shall reap what they sow. Bring it on, indeed!

Rob Thomas

3 weeks ago

The rise in rents in Scotland is the very predictable consequence of the new Private Residential Tenancy which limits landlords' right to sell their own property and has bureaucrats able to decide whether a rent increase is 'fair'. It is of course hugely ironic that the very group this tenancy is supposed to help (the tenants) are the one who will suffer most because of it.

Unfortunately, those who create legislation both in Edinburgh and London are economic illiterates who don't seem to understand the first thing about supply and demand.

So let me spell it out. Over-regulate and over-tax landlords and many will sell up, reducing supply. When supply reduces prices go up and fewer consumers (in this cast tenants) are provided for. So, higher rents and more evictions. Well done Scottish government, what a bunch of geniuses!

Ken Smith

3 weeks ago

Reply to the comment left by Ian Narbeth at 01/03/2018 - 12:50Ian, thanks for your pious, holier-than-thou comments.

If my attitude is different from most landlords - then great. Most landlords will feel the pain from what is creeping in in that case. Not my problem - we all fend for ourselves.
If, as a landlord, you do a better job than me, and offer better properties with fabulous professional support systems, then I will be staggered.
I have nothing to be ashamed of. I was in this business when most landlords didn't know a buy-to-let from blocked toilet.
So spare me the lecture Mr Guru.....
My comments are simply based upon how the establishment is forcing us to act. You might want to act in your own way, which, by definition, will be old-fashioned and not right for current times.
Times are changing quickly and you need to up your game or you may remember these words one day.
Let's be fair, tenants, quite rightly, give us landlords the heave-ho when they give us notice. We only have a commercial agreement with them. A business arrangement. I am not their keeper/social worker/wet nurse.
In case you hadn't noticed Ian, you are running a business - where the government and banks are trying to f**k you - and they aren't even bothering kissing you whilst they do it.

Ian Narbeth

3 weeks ago

Reply to the comment left by Ken Smith at 01/03/2018 - 15:12My point is not to tell you how to run your business. The point is not to proclaim on a public forum that you are engaging in dirty tricks and are happy to see tenants suffer. Your comments can easily be twisted by our enemies. You say you will be out of the business in five years. I hope and intend to be in it long term and to have a legacy for my children, one of whom works in the business. Please don't queer the pitch for the rest of us. It won't help landlords if politicians hear stories - amplified by the likes of housing charities and lobby groups - about decent tenants being booted out by a landlord who admits to engaging in dirty tricks, then decide to bring in even more punishing legislation for landlords.
I have been a landlord for 30 years and my business is doing fine, thank you. I am thoroughly disgusted by this Government and dread to think what a Corbyn government would do. What I won't do is act as if my tenants' interests didn't matter and shout about how I don't care about them. Tenants are our customers. Without them we have no business.

Ken Smith

3 weeks ago

Reply to the comment left by Ian Narbeth at 01/03/2018 - 16:27
Well Ian, you keep on tip-toeing through the mire and keeping your thoughts to yourself.

Dirty tricks? Raising my prices without losing demand and also disposing profitably of assets whilst paying tax too. You sound like Comrade Corbyn. Grow up and get real.

I will continue to be businesslike and retreat from a future oncoming catastrophe and cash in my chips from my business venture..

Sorry but its highly likely at this rate you wont have any real legacy to leave your children. Apart from hassle and strife.

Even if you did...would they really want it?

My family’s and my interests come way before any random customers’ interests. Yes they get a great product and service from us but Im no wet nurse.

What we actually need is for rents to rise until it hurts. That way we demonstrate our power.

Ian Narbeth

3 weeks ago

Never been compared to Corbyn before. Can't stand the man. Most people who know me think of me as somewhere to the right of Lady Thatcher, of blessed memory.

Your counsel seems to be to tell all landlords to get out of the business. You have no knowledge of my business or what is likely to happen to it. Furthermore you display no prudential judgment about what you say and where you say it.

Landlords don't have to keep their thoughts to themselves but can work behind the scenes to try to explain to our thick-skulled politicians what is going on. Having other landlords publicly treat their tenants with contempt and boast about it hurts the rest of us who want to stay in the business.

Dirty tricks? It was your phrase not mine.

I expect you to come back with some more snide remarks. You may have the last word if you wish. I don't intend to continue this correspondence with you.

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