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 dismayed landlord

13:59 PM, 4th March 2018, About 4 years ago

I never normally make comments on any comments. we are all entitled to our own and I read them to get a flavour of what other minds may be thinking. But I can see where AA and Ken Smith are coming from. I have been letting homes for 22+ years. Started it as I was tired of being made redundant and as a disabled person from it was always difficult to get work. So I bought old houses, renovated and let them. I can do the work but not at a 'commercial' speed. I then let them. I spent every day, weekend and evening doing it. I wanted to leave something for my children and grandchildren so I sacrificed a lot. I am now getting out of BTL. I have sold 3 already. the other 15 can go as soon as I get possession. I rarely increased rents and tenants have said I am a good landlord. Meaningless to anyone who does not know me. the properties have been well maintained and the rents are fair. I have tenants who have been with me for 14 years most are over 6 years. I rarely have voids and the last one I had refurbish had been with me 16 years. it took 2 weeks to decorate/new bathroom/kitchen/flooring and had block viewing with 8 people turning up and a new tenant went in 4 weeks after it was vacated. I am getting out of BTL because I am tired of being cited as parasite and deemed to be a money grabbing leach. I would not say I agree with AA as not caring about the tenants I am about to evict and whilst Ken Smith makes a good point about the profit made (yes I have but it is my only income source and I was driven to it to keep my family housed and fed) it was not my initial intention. I am now feeling guilty. I'd still like to leave something to my off spring but CGT, IHT and SDTL seems to stop that happening. My accountants promised the earth but failed to deliver any means of making this possible. what cash I have left (if any) when I depart they can have as opposed to the buildings. In short I feel I should have all the benefit going from DWP to Housing/unemployment benefit, spent those long hours working in all conditions with my children, and for what it is worth , saved my a lot damage to my health. I can now barely walk. I have to pay people to do the work. So I am selling. The government/HMRC changes and the constant media attacks are enough. I hope my tenants realise that I'd happily keep them and I mean them no ill harm. I am confident the government of whatever colour will sort out housing for them.

by AA

14:33 PM, 4th March 2018, About 4 years ago

That's very sad to hear. To struggle through disproportionate adverse circumstances and have what you have built and sacrificed for stripped away. But if there is one thing I know is, there are accountants that are book keepers and accountants that are tax planners. I would strongly recommend you go to more than 1 advisor - you need to protect your revenue stream and if things get tough as they surely will , we just have to notch it up.

by AA

15:25 PM, 4th March 2018, About 4 years ago

Ken - FSA stands for Food Standards Agency. I have no idea what a financial services advisor could be. If anyone is one out there I would be b***** impressed. At my age few things impress me. Financial services span anything from opening a basic bank account to complex derivatives. I think you meant IFA (in an activity...like mortgages ) . And I do not need to be one to point out the obvious like I do not need to be an astrophysicist to point to the moon. Ever heard of Enron, Worldcom, Tyco, BHS, and the corrupt accountants that valued the assets ? All sure things except for the poor sods that were left holding the baby. Now too old to make up for lost time.

So you are bloating about a fictitious value of something you may or may not have against a physical tangible asset.

Would you like to buy a bag of magic beans from me ?

How about we compare notes in a couple of years time ?
My portfolio of properties and revenue streams against your ....equities.

by AA

15:29 PM, 4th March 2018, About 4 years ago

Talk about money going to your head !
I know more about Ken s life and finances than my own 😊

by Ken Smith

15:34 PM, 4th March 2018, About 4 years ago

Reply to the comment left by AA at 04/03/2018 - 15:29
Asif
Well at least it has alerted you to the fact you probably need to get a grip on them..and reality too.

by Jay James

17:10 PM, 4th March 2018, About 4 years ago

Reply to the comment left by Ken Smith at 04/03/2018 - 13:08
Ken, are you based in the Republic of Ireland? This might help explain your use of the acronym FSA.

by Laurie

18:48 PM, 5th March 2018, About 4 years ago

Reply to the comment left by Ken Smith at 04/03/2018 - 13:08
I liked your response which i did not find personally negative (only economically) and I absolutely agree that there are very good reasons to be bearish on the property sector in the coming years. I dont know if 8 years of Corbyn will destroy the UK, but i am very confident it will at least bring the country to her knees. On a "positive" note, less rental properties will be bullish for the remaining landlords, but of course the negatives you mentioned may well wipe out that advantage. I try to keep a diversified investment portfolio in property, stocks, precious metals and cash and to balance them equally but gets a bit out of whack at times. C'est la vie, lets see how it all pans out...in the long run, we are all dead.

by Ken Smith

8:56 AM, 6th March 2018, About 4 years ago

Good attitude Alex, there is only so much you can do to help yourself. But you need to do whatever you can when the threats just keep on coming...

That's why I am getting out of this game very sharpish. I could have paid all loans off tomorrow - but the very low rates have deterred that as being economically silly. However, the emotional thought of not being involved with lenders in now a far greater lure.

I have a portfolio buyer lined up for all my 19 mortgaged houses now and I'm selling at a solid 10% below current market value in order to move on and focus on other things, and also take back control.

I'm paying off all 19 mortgages first to simplify the sale process (no lenders will be in the way - buyers have cash too). Then I wont have one mortgage and that means no lenders at all in my life. Jasper are going to be paid off in these 19 - I have 13 with them.

Its interesting how relatively easy it has been to get someone to buy them. It appears to be Asian money but being bought through a UK company. I couldn't care less if Donald Duck is buying them with his mate Harry Potter to be honest. For some strange reason, there still remains a healthy appetite for rented property. Many people are behind the knowledge curve.

I don't think Corbyn, if elected, will last more than a 5 year term. The moderate followers of his cult (the majority - airheads, snowflakes, scroungers) will soon realise they aren't getting what they wished for and will want a more cosy lifestyle like before. Not for them the harshness of a Marxist regime.

That will be far too late of course - in this industry alone.

The knives and swords are out for landlords. Next it will be guns and bombs.

by Monty Bodkin

9:50 AM, 6th March 2018, About 4 years ago

Reply to the comment left by Ken Smith at 06/03/2018 - 08:56
but the very low rates have deterred that as being economically silly.

What has changed? Those Jasper mortgages are a lottery win earning you a fortune on when you first took them out. To flog them off at 10% BMV (buy 10, get one free) and then get hammered for CGT doesn't make sense to me. Certainly not from a financial view. It doesn't add up.

by Ken Smith

11:06 AM, 6th March 2018, About 4 years ago

Reply to the comment left by Monty Bodkin at 06/03/2018 - 09:50
Monty - you hit the nail on the head. It doesn't add up to YOU. I understand why that could be the case to some.

If you read this thread about my background then you might understand why it all adds up for ME.

I can afford to make, what might seem to you, irrational financial decisions. BTL is a small part of my wealth - yet a thorn in my side now. Not everything in life has to be measured by profit made. I can easily remove that thorn. If I only had those houses as wealth I might be tempted to hang on - although I would know I was taking a big risk.

As I constantly say here, prepare for the bloodbath. Remember the terrible tsunami in 2004? Some people fled instantly when they saw the weird phenomenon of the sea being 'sucked away' from the shore. They fled because they knew what would happen next. They had knowledge. Others, ignored their advice to run. They probably thought, 'why run inside, it's a sunny day and we're hear to get a tan?' We all know what happened to them.

Read about the 10 year old girl, Tilly Smith (no relation), who advised her elders as a result of knowledge. Her innocence and genuine fear probably stopped her from keeping quiet.

https://blog.oup.com/2009/10/tsunamis/

I see this as similar.

Everyday, we hear more snippets of the wrong type news (see todays Belvoir report)

You might feel that you have a lottery win Monty, but actually a lot of lottery winners turn out miserable and resent their 'good fortune' and would turn back the clock.

Listen to Tilly Smith. Look for the obvious signs - then act.


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