Will Landlords Sell Off Their Properties In Scotland When Facing Rent Controls

29th November 2024

Some landlords in Scotland are leaving the rental sector due to rent controls and other factors, but the picture is complex:

Financial situations
Landlords may be selling to release capital or because they're frustrated with the Scottish government's actions.

Investment journey
Some landlords may be reaching the end of their planned investment journey.

Age
Landlords who bought properties for retirement or to pass on to heirs may be selling due to age.

Costs
Landlords are facing increased costs, but they can't pass those costs on to their renters.

Rent controls
Rent controls can reduce incentives to invest in new supply and property maintenance. They can also lower investor confidence and harm long-term investment.

Housing (Scotland) Bill
The Housing (Scotland) Bill paves the way for rent control zones.
Scottish Association of Landlords (SAL)
The SAL says that the number of homes available to rent in Scotland could be around 22,000 fewer at the start of 2024 than just a year ago.

However, the government says that they are not seeing landlords exiting the sector. Landlords only update their registration every three years, and if they sell a property, they often forget to update the register.

Karen Condie, a director at Holmes Mackillop soictors said, "Despite higher rent increases than the rest of the UK, the Scottish Government will just not give up on rent controls for the private sector. With private landlords unable to recover increasing costs, such as their mortgage payments, they are effectively forced to leave the sector. That reduces supply, increases demand and results in rents going up and up."

"With the lack of council housing, there is a dependence on the private sector to provide rental accommodation and an expectation private landlords will provide the affordable housing that is desperately needed.

Housing Scotland Bill analysis of the call for views
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