Red tape and a hostile attitude towards landlords from government is fuelling Scotland’s housing crisis, experts warn.
John Blackwood, chief executive of the Scottish Association of Landlords, claims some property owners are being made to feel like “a pariah in society”.
He blames “mixed messages” and “anti-landlord rhetoric” from ministers in the Scottish Government for deterring investment, leading to property owners leaving the market.
Blackwood says on the Scottish Housing Podcast – a new show exploring issues facing first-time buyers, homeowners and tenants – that there needs to be a re-set in relationships between government and landlords under new First Minister, John Swinney.
Blackwood adds that some landlords feel unwanted because of “politically motivated” policies such as rent controls.
Another podcast guest – John Boyle, director of research and strategy at agency and consultancy Rettie – highlights the political risk confronting the Build To Rent market due to rent control plans, citing them as a hurdle to institutional investment.
The rent cap initially imposed by the Scottish Government to alleviate cost-of-living pressures came to an end on April 1. While landlords can still propose rent increases under transitional measures, tenants have the option to challenge these hikes through an adjudication process. Any approved increases may be capped at 12 per cent.
The Scottish Government also recently published its Housing (Scotland) Bill, which includes plans to introduce long-term rent controls and grant tenants significant new rights.
Speculation is mounting over the future of the bill following the change of First Minister and the removal of Green Party rent control architects Patrick Harvie and Lorna Slater from government positions.
Blackwood says Scottish politicians privately acknowledge the private landlord market is “part of the solution” to the nation’s housing problems. But he adds: “The trouble is, ordinary landlords out there in the street who are operating small landlord letting businesses, they are not hearing that from their elected members. And actually, it’s quite the opposite.
“They hear an anti-landlord rhetoric that comes from our politicians. And that puts them off, stops them from investing. It makes you feel that actually we’re not wanted. We should actually actively be exiting the sector, not investing in the sector.”