Landlords ‘under attack’ from Scottish Government policies, says north-east expert

New rules for rented property in Scotland have tilted the balance too much towards tenants, according to a north-east lettings expert.

Adrian Sangster, leasing director at law firm Aberdein Considine, said the changes were driving landlords out of the market and – as a result of more people chasing fewer properties – driving up prices.

As an example of current “unprecedented” demand, he described how one home that recently became available in Westhill, near Aberdeen, attracted 30 potential buyers.

Some people are so desperate to secure a private rented home they are offering more cash per month – sometimes up to £100 extra – than the landlord is looking for, he said.

Mr Sangster was speaking after it emerged landlord associations are seeking a judicial review at Scotland’s highest court over the Scottish Government’s decision to freeze rents and ban evictions.

The Cost of Living (Tenant Protection) (Scotland) Act was fast-tracked through Holyrood over three days, capping rent rises at 0%, with some landlords able to apply for increases of 3% to cover building costs.

The legislation also temporarily banned evictions from being enforced in Scotland.

Eviction ban extended

This was initially in place until the end of March but last Thursday Tenants’ Rights Minister Patrick Harvie announced an extension of the eviction ban until September 30.

The rent cap will be lifted from 0% to 3% in the private rented sector, while social landlords reached an agreement with ministers that increases would be below inflation.

Scotland’s eviction ban and rent cap are aimed at helping people through the cost-of living-crisis.

Previous emergency coronavirus legislation halted evictions except where they were because of antisocial or criminal behaviour.

In a nine-page submission to the Court of Session, signed by Lord Davidson of Glen Cova, a former Advocate General for Scotland, landlord groups argue there has been “a material adverse impact” on the income and capital of people renting out property north of the border.

Mr Sangster acknowledged that in the past there was not enough protection for tenants.

But recent attempts to rebalance the market have ended up skewing it too much in tenants’ favour, he added.

Property owners ‘drifting away’ from market

Extending the eviction ban for another six months is “a sad indictment of the government’s approach to landlords in Scotland”, he said.

There is a caricature of fat cat landlords lining their pockets but nothing could be further from the truth.”

Adrian Sangster, leasing director, Aberdein Considine

The lettings expert continued: “An eviction can be granted because of rent arrears, but it will take at least six months and that’s a large chunk of money for landlords to cover.”

Property owners are “drifting away” from the market in growing numbers, further squeezing supply, he said.

Asked if the legislative changes in recent years were necessary to protect tenants from unscrupulous landlords, Mr Sangster said: “The sector in Scotland is among the most highly regulated in Europe.

“There is a caricature of fat cat landlords lining their pockets but nothing could be further from the truth.”

I really do fear for the future as I can’t see how we are going to magic up all the properties needed to meet demand.”

Every new bit of government legislation seems to discourage landlords, he said, adding: “It feels like they are under attack.”

Market forces dictate that rents will go up as the availability of rented accommodation shrinks amid growing demand, he said.

He added: “I really do fear for the future as I can’t see how we are going to magic up all the properties needed to meet demand.

“The Scottish Government needs to take a breather and work with the sector to find a solution that suits all parties.”

A Scottish Government spokesman said: “We recognise the role of the private rented sector in providing homes for let, and acknowledge that some costs have been rising for landlords as well as tenants.

“The emergency legislation passed by parliament requires us to keep measures under regular review.”