Scottish rent costs rocket amid the very idea of Rent Controls

Scottish rent costs rocket amid the very idea of Rent Controls

10:52 AM, 1st March 2018, About 4 years ago 52

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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”



Comments

by AA

10:40 AM, 3rd March 2018, About 4 years ago

Reply to the comment left by Ken Smith at 03/03/2018 - 06:34
Congratulations on your success. I merely commented on an aspect of investment you participated in and the common features of it. Here is some free advice which you can ignore at your own peril- invest in equities you may as well visit your local casino. Its your money knock yourself out. I have a comprehensive understanding of the stock market, thank you, but have invested in tangibles and not an imaginary profit or valuation created by an accountant being paid by the company in question.

by Ken Smith

11:36 AM, 3rd March 2018, About 4 years ago

Reply to the comment left by AA at 03/03/2018 - 10:40
Ok, Asif, so let's get this right. You are advising me to invest in equities at my peril, yet since March 2009 my portfolio has risen almost threefold?

Hmmm......interesting. £2m since 2009 is now worth £7m+ today . Study the peaks and troughs along the way - but focus on where it has ended. A lot like property growth.

I hope nobody here takes your 'free advice' - of which you aren't permitted to actually give (I'm assuming that, based on your comments, you can't possibly be an FSA).

It's going to take some crash to wipe that lot out. If that happens then it's curtains for everyone.

Now, thanks to you sage advice, I know where I went wrong.

I would suggest that you most certainly do not have a comprehensive knowledge of the equities market, and how best to play it long-term.

by AA

15:23 PM, 3rd March 2018, About 4 years ago

Reply to the comment left by Ken Smith at 03/03/2018 - 11:36
I am not in a position to validate your financial status but it seems you are intent on advertising it. Whether its factual or otherwise, I do not know. It is puzzling though someone with such deep pockets buys into the lower end of the property market. I will let Donald Trump know there is a couple of cheap properties in one of our positive discrimination areas

Picking the tops and bottoms of peaks and troughs ....sigh.
Where have I heard that time after time ?

Here is a condensed free lesson on the stock market - 90% of stock is held by institutions. When the market is going up 3 questions - who is selling? Where is this stock coming from? Who is buying ? - the process is called distribution. You the punter on the back of good news is the buyer. The reverse of this process is called accumulation. This is when the smart money pull the rug from under your feet and test your resolve on how much of a punishment your finances can take. Those with deep pockets can survive, others have to cut their losses and fold.

Been there, done it, bought the t-shirt. Unless you have inside information you are an outsider and someone else's meal ticket. I would perhaps suggest you have difficulty in separating investing / trading and gambling. Also suggest you read Cityboy to give you an insight of what really drives the market. Its a far cry from what is peddled by the media.

Ps. The FSA was replaced by the FCA sometime ago.

by Laurie

18:24 PM, 3rd March 2018, About 4 years ago

Ken Smith - you may have some valid points, but boy do you destroy them with your super negative vibes, chill out dude and enjoy your riches..

by Richard Adams

18:32 PM, 3rd March 2018, About 4 years ago

Why all the comments about the "government" bringing about the situation in Scotland and slagging Westminster off as clueless etc? It's the SCOTTISH Government that brought in the Private Rented (Tenancies) Scotland Act, nobody else. Rents rising as a result was inevitable. My Scottish BTL is now virtually unlettable anyway thanks to Sturgeon screwing the Scottish economy. Lucky to get any rent let alone raising it.

by Annie Landlord

18:41 PM, 3rd March 2018, About 4 years ago

Reply to the comment left by AA at 03/03/2018 - 15:23
"Ps. The FSA was replaced by the FCA sometime ago"
Yes, the fact our Ken thinks financial regulation is conducted via the Food Standards Agency is rather a give away isn't it:-)

by AA

19:30 PM, 3rd March 2018, About 4 years ago

Reply to the comment left by Richard Adams at 03/03/2018 - 18:32
Richard - puzzled. Yes Sturgeon has truly kicked us in an area that should always be handled delicately but why would this render your property unlettable? There is a chronic shortage in Scotland. Rents for a 3 bed have gone up from £1450 to £1600 pcm in one clean sweep. Tenants that have been made aware of

by AA

19:54 PM, 3rd March 2018, About 4 years ago

this fact are now panicking..

by Richard Adams

22:37 PM, 3rd March 2018, About 4 years ago

AA, To be fair the property - a 2 bed flat - was a bad buy. My fault. Not in a great location either. However the "policies" across the board including laws relating to private lettings of the Scottish Government since have undoubtedly made matters worse. I won't list them - too painful!

by Ken Smith

13:08 PM, 4th March 2018, About 4 years ago

Responses to 3 comments following my last post..

Asif and Annie Landlord.
I think it is you two who dont realise that an FSA is actually a 'Financial Services Advisor'. At least this proves that Asif cannot possibly be one.

Food Standards Agency really Annie...are you serious?

Check this out - it explains.....

https://www.jobs.ie/job-talk/job-description-financial-services-advisor/

Asif as regards to me 'advertising' my status, I did this to demonstrate that my circumstances were much different to your obvious wild presumptions of them in your previous post. It was relevant in order to illustrate the point I made.

Your comments about me operating in the 'lower end' are strange - and amusing too. I operate in the mid-market. No trash tenants - all with solid guarantors. Currently 2k of arrears with managed payment plans in place. I do not get involved with Local Authorities. That would be stupid.

In any event though, what is wrong with the operating in the low end of any market? Money made in the lower end of a market spends just as well as that made 'higher up'.

You also persist to rant about equities - I suspect you have caught a cold there at some time. Even though I have turned £2m into £7.423m (just checked) in 9 years - without any work at all. Very odd indeed. This is just a combination of tracking, patience, and holding your nerve.

The equities might be worth 150k less or 150k more in 24 hours - do I care? No. I often don't check for a few weeks to be honest. It just keeps trundling up and down hills.

Finally to Alex Simpson. It's great that you can see my valid points, and yes, I do intentionally bring super-negative vibes here on purpose.

Why?

Because the reality that so many negative things are drawing closer now.

People, not just landlords, are quite rightly concerned about Corbyn. If he succeeds, the UK will be plunged into a Marxist regime from a Capitalist one. The ramifications surely dont need explaining.

One of the cornerstones of Marxism is that 'property is theft'. Work it out...

However, it get's worse, dont think that another Tory government will look after us and save us from the ravages of Comrade Corbyn.

We are being abused now by Tories - started by Osborne.

In order to keep under 35s and renters happy even the Tories will promise in their manifesto,to punish us. Its a simple cheap vote-catching ploy. They will have realise that by, in comparison, upsetting a few hundred thousand landlords, they can attract millions of votes from the disillusioned Corbyn voters of June 2017. It's just business to them. We are the collateral damage (I suggest largely tory voters) that they have earmarked as dispensable in order to woo voters.

Add into the mix some definite threats and some possible ones....

Section 24 kicking in over 4 years (3 years to go)
Rent controls
Tenancy controls
Pets in houses
Further inevitable legislation affecting landlord tax
Interest rate rises
Banks dirty tricks
PC culture working against us regarding tenant selection
Plus all the increased day-to-day regulation.

That's why I'm super negative. In fact, please downgrade me (upgrade?) to Super-super-negative Alex!

Only yesterday I advised a starry-eyed potential newbie top stay out of the business.

I'm having a great time - money can help you do that. However this area of my life is taken seriously - until I exit totally.

To me its all a game really. I always look ahead and 'down the road' and analyse opportunities and strengths that are in the distance. That way you have time to plan.

I got into care homes in early 90s after Thatcher had opened the doors for private care in the sector. I ended up with just 2 homes - both with outstanding ratings for care -and sold up easily to a major operator in 2006 as I could see the economy overheating crazily. It proved right. I got 40% more than I was advised I would.

I parked my money in the bank because I could see it was crazy out there then. I was getting 5% then - on £3m. It proved right.

I invested the proceeds in equities and below market value in property in spring 2009 after the bloodbath. My money in the bank was now not keeping pace with inflation. It proved right. .

I can now see what is coming in the private renting sector in the UK.

It might not prove right - but I wouldn't bet against it. Don't walk zombie-like into the traps ahead. You have other options.


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