The Propertymark Policy team have continually presented evidence of the detrimental effect of the legislation, both to the Department and in a recent face-to-face meeting with the Minister, Patrick Harvie MSP.
If voted in, the changes mean that the Act will be extended for a further six months to March 2024, the maximum amount of time allowed in the initial legislation. The extension will apply to the current rent cap of 3% and the moratorium on evictions.
Scottish landlords and letting agents will be disappointed to see that Propertymark's evidence has not been considered, which clearly demonstrates the devastating impact the legislation is having on the rental market in Scotland. Our latest response to the Scottish Government’s call for evidence showed that 100% of our members in Scotland now report evidence of landlords looking to sell their buy-to-let properties.
Government ministers continue to deny that this is an issue, but we know that the private rented sector in the country has been impacted. House prices have been hit hardest in Scotland compared with other UK countries and, conversely, to the intention of the Act, rent increases have been highest, with data from the Office for National Statistics showing that Scotland saw the biggest increase in rents despite being the only country in Great Britain to introduce rent caps. Annual private rental prices increased by 4.6% in England, 4.4% in Wales and 5.1% in Scotland in the 12 months to March 2023. This was higher than even London which increased by 4.8%.
The cost of living is continuing to affect us all, landlords are seeing their outgoings rising from mortgages to maintenance. Our research found that some management costs have risen by as much as 84% since 2019, yet rents are unable to rise to keep landlords afloat. At the end of all this, the tenant is the one suffering, as the rental market is squeezed further and new rents are being pushed higher by landlords who are unsure when they will be able to ask for an increase to meet their costs, as well as the clear lack of investment into an ever-growing market.
Propertymark wants to see an end to this stringent legislation and for the private rented sector to be able to recover in Scotland, we want the Government to recognise that the sector plays an important role in housing those who need it, but this cannot continue at such a high cost.
