Wednesday, January 26, 2022
Landlords

Concern expressed over proposed rent controls

landlords

The latest Scottish Housing Survey published in 2019, reveals that 14% of the Scottish population or nearly 340,000 households, live in the PRS

Buy-to-let landlords may be forced to pull out of investing in the private rented sector in Scotland if proposals to cap rents are introduced.

David Alexander, the managing director of DJ Alexander, acquired by the Lamond Group last month, has welcomed the consultation paper on a better deal for tenants north of the border, published by the Scottish government, but he has once again expressed concern about the potential for rent controls being introduced.

Alexander warned prior to Christmas that buy-to-let landlords could exit the market if the Scottish government presses ahead with rent controls, and now he is calling for greater recognition for the crucial role that the private rented sector (PRS) plays in providing homes for the people of Scotland.

The latest Scottish Housing Survey published in 2019, reveals that 14% of the Scottish population – around 340,000 households – live in the PRS. This has nearly trebled since 1999 when just 5% of the population lived in privately rented homes.

Over the same period the percentage of Scots living in social housing has declined from 32% in 1999 to around 24% in the latest period (roughly 590,000 households). The remaining 62% are owner occupied properties.

Alexander commented: Demonising the PRS will not resolve Scotland’s housing problems and, if anything, it is likely to make it worse. The private rented sector is an essential part of housing provision in Scotland. What always seems to be forgotten is that many thousands of people choose to live in the PRS because of their lifestyle, location, convenience, and simply because it suits them.

He said: Legislators need to be wary of playing to the gallery in producing the simplistic argument that private renting is bad while social housing is good. Both parts of the rented sector, along with owner occupiers, serve differing needs of the population and you interfere with these systems at your peril.

He continued: It is of great concern that the Scottish government consultation paper ‘New deal for Tenants’ mentions rent controls and was launched without a supporting quote from any landlord organisation or letting company. Rent controls have never worked anywhere in the world and invariably lead to higher rents for new tenants and fewer properties on the market resulting in more housing shortages in the medium to long term.

He said: The fact that the PRS has grown significantly over the last 20 years is important and reflects tenants voting with their feet and moving into properties where they want and can afford to live. That social housing has declined by a comparable amount over the same period simply reflects changing demands in society.

Important:

The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply

one × 5 =