Anti-landlord legislation is forcing Scottish landlords out

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Anti-landlord legislation is forcing Scottish landlords out

Anti-landlord rhetoric from Scottish politicians is causing landlords to leave the private rented sector.

That’s the view of the chief executive of the Scottish Association of Landlords (SAL), John Blackwood, with a warning that the Scottish government must change their attitude towards landlords with the Scottish elections coming up in May.

In an exclusive video interview with Property118, Mr Blackwood warns blunt legislation is not the answer to solve Scotland’s housing crisis.

Anti-landlord rhetoric

Many of SAL’s members are weighing up whether to leave the private rented sector, but for years many have exited the market due to one big factor.

“It’s to do with the anti-landlord rhetoric that they are hearing from our politicians,” John explains.

“There’s a range of other factors, such as rent controls, that put additional pressure on landlords and make them think again about investing in the private rented sector.

“It’s a reality now, and what we are saying to politicians is that they need to listen to landlords. Landlords are investors and you need to encourage investors. If you frighten off investment, there’s going to be fewer properties available to rent.”

Landlords need to feel valued

With the Scottish elections coming up in May, John says politicians need to change their attitude towards landlords.

He said: “Landlords need to feel valued as investors and treated as businesses. To ignore us and make it feel like we are pariahs in society is wrong, and it does nothing to instil confidence in the sector.

“Scottish politicians need to change their attitude towards the private rented sector and work with us.

“The Scottish Housing Secretary Mairi McAllan has told us she wants to work with landlords, she wants to work with the private rented sector, and we need more investment. They are great words, but we need to see actions that speak louder than words.”

John explains that while landlords may not win votes for politicians, it is still important for policymakers to understand their role in the housing system.

“Landlords don’t win votes for politicians, and that’s an important message we need to get across. They’re not suddenly going to think they need to support landlords hand over fist.

“Politicians are obviously thinking about the wider community, they are concerned about tenants, about whether tenants can afford to pay their rent and whether they have good homes to live in.

“What I’m trying to say to politicians is that we both want the same thing. We want our tenants to be happy, we want them to stay in their properties, and we want them to be able to afford to live in them.”

Landlords are working people

John explained that SAL is the largest representative group of landlords and letting agents in Scotland, an achievement the organisation is very proud of.

He says: “We represent landlords in every postcode area in Scotland, from one corner to the other. With that comes great responsibility because we are the voice of the private rented sector in Scotland.”

However, John acknowledged that the role also comes with challenges and said: “Many of our politicians are not particularly interested in the concerns of landlords, and that’s something we need to overcome in order to get our message across.”

John says it’s important to recognise that landlords should be proud of the role they play.

He said: “I’m a landlord, I’m proud to be a landlord and I like being a landlord. I’m good at it because I’ve worked hard at it.

“Landlords are working people. It’s not a passive income, you have to constantly learn new pieces of legislation and keep up with what’s happening. Tenants are also more demanding than ever before because they expect value for money.”

However, John adds that affordability cuts both ways.

He said: “Rents need to be affordable for tenants, but they also have to be affordable for landlords because we are running a business. If we can’t cover our costs, then we are going to think twice about continuing to invest.”

Is blunt legislation the best way to solve the housing crisis?

Scotland previously introduced rent controls in 2022, which ended last year. However, the Housing (Scotland) Act includes provisions for the reintroduction of rent controls.

Councils must first assess rent conditions in their areas and submit proposals for designated rent control zones to the Scottish government by 31 May 2027.

With the legislation now receiving Royal Assent and rent controls on the horizon, John expressed concerns about the legislation.

“I can’t say I welcome it, and our biggest concern is that we’re introducing legislation to fix a problem we don’t fully understand,” he said.

“We all agree that high rent prices are something that needs to be addressed, but is blunt legislation the best way to do that?

“Ironically, with rent control in Scotland, we had the highest percentage increase of rents in Scotland compared to any other part of the UK, and we had rent control until last year.”

He added that the issue may ultimately come down to supply and demand, saying: “We simply don’t have enough properties available to rent in Scotland, and that naturally puts pressure on rental prices.”

Rent controls to be proportionate

Despite his concerns about the Housing (Scotland) Act, John says there are some positives.

He said: “There won’t be a blanket approach to rent control and that’s a good thing.

“The government did listen to us throughout the debate and certainly took on board that it had to be proportionate. Any rent controls introduced will be designed locally so they can meet and respond to local need.

“There will also be exemptions to rent controls. We have been championing exemptions for below-market rents because we think it’s perverse that landlords are penalised for not increasing rents.

“We know many landlords with long-term tenants who don’t raise the rent, so why should they be penalised by potentially never being able to increase it in the future?

“We just have to wait and see what the regulation brings because that’s what will give us the detail behind the legislation. There’s still a lot to play for over the next couple of years before we see the introduction of any kind of rent controls in Scotland.”

Awaab’s law needs to be pragmatic

SAL also supports the extending of Awaab’s Law to the private rented sector in Scotland, but warns it needs to be implemented in a way that is pragmatic for both landlords and tenants.

The law was named after Awaab Ishak, a two-year-old boy who died in 2020 after prolonged exposure to mould in social housing.

John explains: “We want to make sure tenants live in good-quality, damp and mould-free homes, and any legislation that tries to achieve that we support.

“The reality is how we balance those very real issues and concerns. What we need to look at going forward is how practical it will be and how it will be rolled out.

“The big thing for us is understanding the underlying causes of dampness and mould and how we address that as landlords, as the owners of the property with responsibilities.

“We also need to educate tenants, because as many landlords will say, it’s about the tenant’s understanding of how to live in the property and how to help keep it free from damp and mould.

“It’s about working together to ensure a tragedy like this never happens again.”

Landlords confused over EPC measures

Since 2019, the Scottish government has been hinting that landlords may need to meet an Energy Performance Certificate (EPC) rating of C.

The Scottish government’s recent consultation outlines a phased approach, requiring new tenancies to comply from April 2028, and all private rented properties by 2033.

However, John says the moving goalposts and lack of certainty have left many landlords confused over energy-efficiency measures.

He said: “Landlords are telling us they want to upgrade their properties to meet energy-efficiency targets, but they need to know exactly what they have to do and by when. At the moment, those are two key questions we can’t answer.

“Our concern, alongside the lack of clarity and direction, is that there could be a mad rush before the legislation comes in, with everyone trying to upgrade their properties at the same time.

“The best time to carry out upgrades is when a property is empty. In Scotland, we don’t have fixed-term tenancies, so landlords don’t know when a tenant might leave. Tenants can give just one month’s notice at any point.

“That makes it very difficult to line up tradespeople to carry out the work, even if landlords knew exactly what was required.

“I also think there will be a skills shortage. It raises the question of how you get the right tradespeople at the right time, particularly given Scotland’s diverse geography, which creates additional challenges in rural areas.”

Landlords will always be needed

Despite the doom and gloom within Scotland’s private rented sector, John says it will always be needed.

John told us: “We are always going to be in need to provide accommodation. There will never be enough social housing, and not everybody can access home ownership, so where else do they go? The private rented sector.

“In reality, we need the private rented sector, and we will always need landlords. But the million-dollar question for landlords is: are you one of these landlords who wants to continue to remain in the private rented sector and play your part in keeping Scotland’s housing market working?”

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