Housing is one of the matters devolved to the individual governments of the UK, so there are different rules governing landlords and rental properties in each country. Here is a look at some of the recent property news in Scotland.
Consultation on rent caps
Currently, if a tenant is concerned about a proposed rent increase, they can apply to a rent officer at Rent Service Scotland for an adjudication, or to the First-tier Tribunal.
The latest proposed amendment to the Housing Bill is that rent increases in areas where rent control is applied should be limited to the Consumer Price Index (a measure of inflation) plus 1%, up to a maximum increase of 6%.
This would apply to increases both during a tenancy and between tenancies. A consultation is set to take place in the spring.
Latest Scottish landlord survey
In December, the Scottish Association of Landlords carried out its annual survey of members. Here are some of the main findings:
- 61% of landlords increased rents in 2024 and only 3.5% of tenants challenged the increase. This suggests rents are affordable and a fair market rate. Only 0.5% of those who raised challenges applied to the rent officer, the rest negotiated directly with their landlord.
- 10% of respondents have plans to expand their portfolios.
- Although 53% of landlords intend to reduce the size of their portfolios, 27% said they will wait until the tenant chooses to move out and 30% are already planning to sell to another landlord with tenants in situ – an increasingly popular option.
- While some landlords have already exited the sector, 84% of those surveyed were aged 50 and above and 30% had been a landlord for 20+ years. Therefore, many of those that have withdrawn from the market may have done so because they were at or near the end of their natural investment journey.
Overall, while there has been a recent drop in the number of properties available for rent, that means those who choose to remain in the sector have the supply/demand ratio in their favour and there should be some good investment opportunities this year and beyond.
As always, the best way to stay up to date with the latest proposals and changes to the way properties are legally let and managed is to work with a qualified agent.
If you’d like to discuss how we can help your rental investment continue to be as successful as possible, get in touch with your local experts today.
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