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Scotland to introduce rent controls

Scotland is to introduce rent controls and ban “no fault” evictions in a shake-up of the country’s private rented sector.

First Minister Nicola Sturgeon has released the Scottish National Party’s programme for government for the forthcoming year.

The programme contains a Private Tenancies Bill which includes measures to “provide more predictable rents and protection for tenants against excessive rent increases, including the ability to introduce rent controls for rent pressure areas”.


It will also “remove the 'no-fault' ground for repossession, meaning a landlord can no longer ask a tenant to leave simply because the fixed-term has ended.”

The Scottish Property Federation (SPF) says rent controls could deter investment in Scotland’s private rented sector and curtail much-needed housing supply.

The SPF is concerned that even the possibility of rent controls could sound the death knell for future investment in the build to rent market. It says build to rent has the potential to rapidly boost Scotland’s housing supply, which needs to be increased dramatically across all tenures if the current housing shortage is to be resolved.  

David Melhuish, director of the Scottish Property Federation, said: “We will consider the detail of the Bill carefully when it is published but we have been trying to encourage investment into Scotland’s purpose-built rental market for a long time, and it has been great to see momentum build over the past few months with some big deals taking place. A clear message we have had from the industry, however, is that the mere prospect of rent controls, could be enough to spook potential investors bring us back to square one again.

“If the Scottish Government wants to increase housing supply, then the introduction of rent controls is not the way to do it. The purpose-built private rented sector has the potential to deliver a large amount of new homes across Scotland, and we should be doing everything we can to encourage investment in this sector rather than regulate this sector before it has had chance to take root.”

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    Yes another farce by the SNP government trying desperately to be the new labour....

    Personally I do not think there is a problem with the "excessive rent increases" as I simply do not think it really exists in Scotland. In London, quite possibly, but if it happens here its few and far between. So this area does not concern me.

    What is of massive concern is the "no fault eviction" and how this will be used and abused by tenants who already have a very one sided lease. If I was a lender I would not be lending in Scotland thats for sure. May seem strange to some that there are many lenders who already do not lend in Scotland, simply because of the repossession laws; so already we have a reduced pot of lenders to that of the rest of the country. However throw this into the pot it can only reduce further.

    What landlord moves on a good tenant for the sake of a extra £25 / £50 per month. It simply does not happen. Most would pay that for a good tenant...

    We have not increased our portfolio for around 2 - 3 years due to availability of funding. However if I was to be offered 1 million pounds now to invest into the Scottish market I would simply turn it down.

    Because of the way we see this going, we are reducing our risk and selling off properties. How this brings rental market pricing down I am not sure, possibly one of the jokers at the Scottish parliament would like to advise, but where I come from the greater the supply the lower the price. Look at oil for an example.

    Further, not only do we have to contend with these foolish and un-necessery proposals, but we now have to put even more hard wired smoke alarms in properties as well as heat detectors in the kitchen. We now have to do mandatory PAT testing and Electrical 3 / 5 testing so the costs to landlords are through the roof. All this and if you have a bad tenant we are going to make it 3 times harder and more expensive to get your property back.

    My advice, reduce your risk in the Scottish Market and do not buy anymore to let out in Scotland. With the proposals as they stand you will be possibly funding the life of someone else and not be able to move them on.

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    Not to mention the increase in effective tax rate on rental profits which for many will be 70%+ and for some 100%+ that was announced by George Osborne in the Summer Budget. (if you haven't already then sign the petition here: https://petition.parliament.uk/petitions/104880

    And also the requirement that houses for rent must meet minimum EPC levels by 2018.

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    www.saynotogeorge.co.uk stop the Property tax grab

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    Does this mean they are stopping the right of landlords to give normal notice when a property is being sold. That would be madness.


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