85% of letting agents say that landlords expressed a wish to sell up in Scotland

Following the emergency measures introduced by the Scottish Government in response to the impact of the cost-of-living crisis on those living in the private rented sector, Propertymark reveals telling data on the impacts being felt by letting agents and their landlords in Scotland. 

Under the Cost of Living (Tenant Protection) (Scotland) Act, Scottish Ministers must report and review every three months on the need for the provisions in the Act to either be continued or to end, based on the evidence available at the time.

Using research carried out by the membership body, Propertymark has expressed immense concerns about how the measures are affecting those working in the private rented sector in Scotland, detailed in its response the Scottish Government’s call for evidence.

Feedback from Propertymark members in Scotland found 85 per cent of agents had landlords who had expressed a wish to withdraw from the private rented sector and sell their properties and perhaps more worrying, 68 per cent of agents have already seen an increase in notices to sell due to the temporary measures.

Propertymark believes that the legislation changes introduced are disproportionate to the scale of the problem in Scotland, with many of its member agents saying that landlords did not raise rents in the last year.

One of its agents said:

“Many landlords who have not increased rent and had properties below market value for years are now considering this position and feeling they must raise to market rent from now on and keep up with annual increases, whereby before they had not considered it.”

83 per cent of those that Propertymark surveyed stated that they would be inclined to increase rents as a result of the Act as landlords want to have reassurance that they can cover any rental loss as well as rising cost of maintenance and repairs, utilities and mortgage interest hikes.

The first report, covering the period 28 October to 31 December 2022, will be laid before the Scottish Parliament no later than 14 January 2023.

Commenting, Timothy Douglas, Head of Policy and Campaigns at Propertymark, said:

“The measures introduced under the cost-of-living legislation are disproportionate to the scale of the problem and have only driven more landlords out of the sector.

“Feedback from Propertymark members shows that because of the measures introduced by the Scottish Government the desire for landlords to remain in the sector and increase the number of homes for people to rent is stalling.

“Alarmingly, the temporary nature of the legislation means that the impact is not fully realised yet but if the changes are extended then there will be greater consequences.

“The private rented sector is a key solution to resolve the housing crisis but if the Scottish Government continue with policies that disincentive landlords this will only make the situation worse.”

Read Propertymark’s evidence here.

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