Scottish letting market reacts to new tenancy laws with rent increases

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Rent Increases:

Rent costs in Scotland have rocketed in January following the introduction of new tenancy laws last December 1^st.

According to ARLA Propertymark research, around half (44 per cent) of Scottish tenants have seen their rents increase in January, a figure that contrasts sharply with the national average of increases affecting around just one-fifth (19%) of tenants.

These findings from ARLA Propertymark’s network of letting agents in Scotland come following the introduction of the new Private Rented (Tenancies) (Scotland) Act on 1st December 2017.

The letting agents’ professional body says that this highlights “a market reaction to indefinite tenancies and the potential for rent controls.”

David Cox, Chief Executive, ARLA Propertymark says:

“Rent controls have a history of dramatically deteriorating property conditions as landlords struggle to meet mortgage payments in addition to maintenance costs. However, it seems the very idea of these controls – and open-ended tenancies – is now affecting rent prices for tenants; in anticipation, landlords are raising rents to make sure they can make ends meet, should they be introduced.

“It’s now been two full months since this form of new Private Residential Tenancy came into force in Scotland and while in December, just over a third (36 per cent) of agents witnessed rent hikes, January’s results show a much larger swing. For the sake of the Scottish rental sector we hope this isn’t a growing trend, but while rent controls are on the agenda, it’s just a waiting game to gauge how the market reacts”

[1] Opinium Research carried out an online survey among 361 ARLA members, from 1st – 8th February 2018. ARLA Propertymark Protected letting agents were surveyed on a number of key rental sector issues including supply and demand, the management of BTL properties, and monthly

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