22,000 rental properties ‘lost amid anti-landlord rhetoric’
Almost 22,000 rental properties may have been removed from the market in Scotland in the past year, research has revealed, with “anti-landlord rhetoric” from the Scottish Government cited as a reason for the drop.
The Scottish Association of Landlords (SAL) said such rhetoric, combined with “short-term, ineffective policies” from ministers, was “harming investment in private rented housing in Scotland”.
The comments came as a survey of SAL members carried out in December revealed that they had removed an average of 6.4 per cent of their properties from the private rental sector last year. If this reduction was replicated across the sector, some 21,760 homes will have been removed, SAL calculated.
When asked about their reasons for planning to remove homes from the sector, 83 per cent of those surveyed highlighted a “perceived hostility towards landlords from government/politicians”.
Meanwhile, three quarters expressed concern about rent controls, with a similar number saying increasing regulation in the sector was a reason for their decision.
SAL said the fall in the number of available properties to let was the biggest factor contributing to rent hikes, adding it was contributing to Scotland’s “ongoing housing crisis”.
It also warned the situation could get worse. The SAL membership survey found more than half (56 per cent) of landlords were planning to reduce their portfolios during 2024 – up from 44 per cent who said they were looking to reduce the number of properties they had last year.
Meanwhile, fewer than one in ten landlords (9 per cent) were planning on taking on more properties, compared to 13 per cent a year ago. It comes after the Scottish Government brought in legislation to introduce a rent freeze in 2022 in response to the cost-of-living crisis.
These measures were later relaxed to allow landlords to increase rents by 3 per cent, with this rising to 6 per cent in some circumstances. Tenants’ rights minister Patrick Harvie has announced plans to temporarily change the rent adjudication process until April 1, 2025.
However, SAL chief executive John Blackwood said the situation in Scotland was “causing significant harm” as it was “reducing supply and driving up costs for tenants”.
Mr Blackwood said: “Landlords have been warning for the past few years that the combination of anti-landlord rhetoric along with shortterm, ineffective policies are harming investment in private rented housing in Scotland. These chickens are now coming home to roost as landlords lose confidence and are choosing to exit the sector.”
Housing Minister Paul Mclennan said: “I look forward to speaking with stakeholders on how we can deliver more affordable homes across Scotland. The Scottish Government has led the UK in housing by delivering more than 126,000 affordable homes since 2007, over 89,000 for social rent.”
Anti-landlord rhetoric along with shortterm, ineffective policies are harming investment