One of Scotland’s largest lettings agencies has voiced concerns over the lack of balance in the Scottish Government’s approach to private landlords.
The moratorium on evictions has been extended to 30 September, meaning that landlords have few options to obtain vacant possession of their properties, including such circumstances as when tenants have stopped paying the rent, or when the relationship between the tenant and the landlord has broken down.
In addition, private sector rents cannot be raised until July at the earliest - with notice given in April - with any rent increases proposed to be capped at 3%. A rent freeze has already been in place since September 2022.
Marsaili Macleod, lettings manager for Galbraith in Inverness, argued that the government’s approach is out of kilter.
“Most buy-to-let investments are funded through borrowing, and landlords rely on the rental income to cover the cost of their mortgage repayments as well as to fund improvements to their property.
“Landlords typically make a significant investment in their rental property year-on-year to ensure it is properly maintained - we feel there is a distinct lack of balance currently and the Scottish Government has not necessarily appreciated the benefits of a thriving private rental sector.“
She pointed out that the government’s own Scottish Household Survey 2020 found that 94% of tenants were ‘very’ or ‘fairly satisfied’ with their rental property, suggesting that policy should be formulated in a way that allows proper protection for tenants, without discouraging investment by existing landlords.
“The current approach may well inhibit landlords from further investing in their rental properties and may well further exacerbate the current shortage of rental opportunities available, to the great detriment of tenants,” added Macleod.
Galbraith reported that some landlords have sold their properties due to the increasing legislative burden, exacerbating the shortage of rental property available in Scotland.
The firm also noted that this shortage is causing frustration for tenants, as landlords can only choose one applicant out of often 20 to 50 applications for each rental property.
It currently lets more than 600 properties per year across Scotland.
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
