Scottish rental reforms put future Edinburgh Festivals at risk

by Property 118

15:26 PM, 13th August 2018
About a month ago

Scottish rental reforms put future Edinburgh Festivals at risk

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Scottish rental reforms put future Edinburgh Festivals at risk

The Scottish Government’s private rental reforms are shaking up the sector according to new data, which reveals rental property sales have outstripped purchases five-fold in the last three months.

Findings from the National Landlords Association (NLA) show that almost a quarter (24 per cent) of landlords with property in Scotland have sold over the last three months, with just five per cent having bought in the same period1.

The data relates to property transactions between April-June this year, four months after the Scottish Private Residential Tenancy was introduced in December 2017.

The Scottish Government says the reforms provide security, stability and predictability for tenants, as well as appropriate safeguards for landlords, lenders and investors.

However, the NLA is warning that the news, which comes during festival season in Edinburgh, could affect up to 45,000 landlords or approximately 67,000 rental properties2.

Richard Lambert, CEO at the NLA said:

“The Scottish Private Residential Tenancy system removes the flexibility of the sector to meet the varied needs of an ever-changing population of renters, in particular students and those who only seek short term tenancies, such as during the Edinburgh Festival.

“Because student landlords now have to provide indefinite tenancies, they won’t be able to advertise their properties for the Festival, as they won’t know for certain if they will be free and available by the end of July. If this sets a trend, and artists struggle to find short-term accommodation, the 2018 Edinburgh Festival could be the last to offer such a variety of talent”.

The NLA says that the level of divestment in rented property is a concern for the Scottish Government, and has urged the UK Parliament to pay close attention as it currently consults on similar proposals for rental reforms in England and Wales.

Mr Lambert added:

“The last quarter has seen the highest proportion of landlords selling properties in Scotland in any three month period since the Government first announced their tenancy reforms in 2016.

“We warned these changes would unnerve investors in private rented homes in Scotland, and it should serve as a clear sign of what to expect if similar reforms are introduced elsewhere in the UK”.



Comments

AA

16:49 PM, 13th August 2018
About a month ago

“Because student landlords now have to provide indefinite tenancies, they won’t be able to advertise their properties for the Festival, as they won’t know for certain if they will be free and available by the end of July. If this sets a trend, and artists struggle to find short-term accommodation, the 2018 Edinburgh Festival could be the last to offer such a variety of talent”. - Not technically true. Rents from last year jumped from circa £1400 for 3 bed student HMO to £1800pcm. This encumbers each student with an extra £1200 per academic year. They will not hang around the summer months if they can avoid it.

But if the outcome in the article transpires Edinburgh without the Festival is like Christmas without Santa Clause and Christmas trees and presents and …..

"The NLA says that the level of divestment in rented property is a concern for the Scottish Government," - don't believe that for a minute. Definitely not the sharpest tool in the box this government so they won't have as yet put 2 and 2 together. You need to be able to see past your nose to come to that conclusion

Scottish Landlord

2:19 AM, 14th August 2018
About a month ago

Couldn’t agree with you more that the Scottish Government will not be concerned in the slightest; I’d argue that they won’t even take notice.

During the consultation phase for the new tenancy agreement student HMO license owners lobbied the government to warn of the problems highlighted in this article i.e. without fixed term tenancies that student landlords and students alike both want, the number of properties that can be made available for festival letting will dry up.

Therefore, I’d have to disagree with your sentiment about the future supply of short-term festival letting. Advertising of festival properties typically starts in January but without knowing when a lease will end, advertising and accommodation guarantees cannot be offered. Performers, who spend many months preparing for the festival, will not be expected to wait until the summer just to see if accommodation may or may not become available at short-notice.

This will certainly be my last year of providing near 20 beds to festival performers and I feel for them. And, yes, of course I could lose rental income if students vacate at short-notice.

It’s also worth pointing out, I feel, that after the lobbying during consultation over the withdrawal of fixed-term leases a small exemption was granted…to large-scale student accommodation providers….different rules for the wealthy investor than for the little guy…sound familiar anyone? Seems little difference between the conservative UK government and so-called socialist Scottish government: both grant favours to the wealthy. By comparison, small-time HMO owners were told that they would “just have to get on with it”.

AA

11:01 AM, 14th August 2018
About a month ago

"It’s also worth pointing out, I feel, that after the lobbying during consultation over the withdrawal of fixed-term leases a small exemption was granted…to large-scale student accommodation providers". - that I did not know. And also explains why I had little interest in a festival let when I advertised in June once.

I made light of it but this is a train crash in the making. Whatever your political persuasion since devolved government was effected we have had hysterical governance - like a child been let loose in a sweet shop. And agree right across the political spectrum there is a glaring bias against the individual whether it's a landlord or tradesman or small business owner. All resources are targeted against the individual. Joe average has to pay his 20% or 40% tax whereas big corporations pay squat. Just having a general rant now 😊

Jeanluc Realtor

17:07 PM, 14th August 2018
About a month ago

Reply to the comment left by AA at 14/08/2018 - 11:01It's actually 41% in Scotland cutting in at £43430 not £46350 like the rest of the UK.
(If it wasn't for the free prescription viagra I would have to move to England!)

Jeanluc Realtor

17:09 PM, 14th August 2018
About a month ago

Reply to the comment left by AA at 14/08/2018 - 11:01
It's actually 41% cutting in at £43430 not £46350 like the rest of the UK.
(If it wasn't for the free prescription viagra I would have to move to England!)

AA

17:40 PM, 14th August 2018
About a month ago

Reply to the comment left by Jeanluc Realtor at 14/08/2018 - 17:09
Forgot about that too - Is there a thing good about living in Scotland other than the free Viagra ? I hope this particular medicine is available only to net tax contributors or the aspirational classes.

Jeanluc Realtor

9:06 AM, 15th August 2018
About a month ago

I just double checked, apparently Viagra isn't free!
Apologies to anyone that was thinking of moving to Scotland based on that inaccurate comment.

Donald Tramp

7:15 AM, 18th August 2018
About a month ago

Reply to the comment left by AA at 14/08/2018 - 11:01
Yup I know of several small businesses who have closed due to the SNP increase in business rates. There are a good few more I know who have laid off staff in order to fund the massive hikes in business rates. Scotland in now in reverse gear due to this populist government trying to buy independance

Donald Tramp

7:20 AM, 18th August 2018
About a month ago

Reply to the comment left by AA at 14/08/2018 - 11:01
"It’s also worth pointing out, I feel, that after the lobbying during consultation over the withdrawal of fixed-term leases a small exemption was granted…to large-scale student accommodation providers". Yup and have you seen the outrageous rents these big providers charge? How on earth the SNP thinks it's helping already massively indebted students by doing this is beyond me. Forcing them into the hands of these theives


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