Scotland’s Rental Sector
Social and Private renting accounts for around 38% of Scotland’s property market (source: 2011 Census). Demand for rented homes is fierce, with nearly 80% of Scotland’s one-bedroom flats let out within the first month. We are seeing more landlords selling their properties to take advantage of the current high sale prices. This generally means demand for rental properties is outstripping supply, which in turn is putting an upward pressure on rents.
Impact on Landlords
Whilst tenants will welcome a rent freeze and evictions ban, organisations such as the Scottish Association of Landlords are warning this may exacerbate the supply problems, with landlords with empty properties perhaps preferring to sell rather than rent in the coming months.
Unfortunately, the Scottish Government has yet to provide the answers to many of the questions being raised by landlords. Ministers have indicated that legislation is likely to backdate the measures to take effect from 6 September, but again, have not confirmed this.
Neither have they confirmed what is to be done with rent-increase notices already given to tenants, where eviction proceedings already begun, or how the freeze will impact on lettings where the rent is inclusive of utilities.
Support for Tenants
The Scottish Government has widened the support it is providing for tenants struggling to pay their rent, with more support for the ‘Tenant Grant Fund’. The UK Government has announced a cap on the amount that can be charged per KWh for both gas and electricity from October. Local Councils, along with third sector organisations such as the Citizens Advice Bureau (CAB), offer income maximisation support. Many local authorities also offer discretionary support for those most in need.
More information
The Programme for Government announcement on 6 September has raised many questions. The Scottish Government must provide answers soon to help both tenants and landlords put in place necessary measures to deal with what is being proposed and legislated. We would encourage landlords to pay attention to the Scottish Government’s news section, and to follow media updates for general information. If you are a tenant or a landlord with specific concerns based on your individual circumstances, please get in touch and we’ll be happy to assist you. We’ll also provide updates on the news section of the Wallace Quinn website as we receive them.