We recognise that there is a need to protect people living in the PRS and we have set out ways in which we believe the PRS is an invaluable resource for affordable, safe housing in Scotland. The PRS is in very high demand and putting stringent restrictions on the sector, such as capping rets, dissuades landlords from investing in the market, which then results in reduced supply and quality.
Propertymark consulted with members in Scotland to get feedback directly from the ground, which resulted in an outstanding response, totalling 169 lettings agency branches that manage more than 46,000 rented properties. This enabled us to input a raft of evidence and real-world testimonies to the Scottish Government.
Key concerns
- Landlords are struggling with affordability and are looking to leave the sector in Scotland
- The temporary measures are disproportionate to the scale of the problem and have only driven more landlords out of the sector
- 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 part of the solution to resolve the housing crisis, encouraging landlords into the market will increase supply and ultimately push rents down
Key statistics since the introduction of the Act
- 85% of agents report that landlords have expressed a wish to sell their properties
- 68% of agents have already seen an increase in notices to sell due to the temporary measures.
- 87% of agents said that landlords had no desire to increase their portfolios
- 86% of agents said that landlords came to them for advice on the legislation
- 83% of agents said that landlords would be inclined to increase rents between tenancies as a result of the Act to cover impending and rising costs
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.
