New law urging longer tenancies and rent controls leads to rent rises - claim

Well over twice as many Scottish tenants have seen their rents rise at the start of the year compared to those in the rest of the UK.

Data from ARLA Propertymark for January - the latest figures available - show that 44 per cent of tenants north of the border have seen a rent rise at the start of 2018; fewer than 20 per cent in the UK as a whole have seen a rise in the same period.

The findings come following the introduction of the new Private Rented (Tenancies) (Scotland) Act on December 1; ARLA suggests this highlights a market reaction to the indefinite tenancies and the potential for rent controls contained in the new legislation. 

“Rent controls have a history of dramatically deteriorating property conditions as landlords struggle to meet mortgage payments in addition to maintenance costs. However, it seems the very idea of these controls – and open-ended tenancies – is now affecting rent prices for tenants; in anticipation, landlords are raising rents to make sure they can make ends meet, should they be introduced” explains David Cox, ARLA’s chief executive.

“It’s now been two full months since this form of new Private Residential Tenancy came into force in Scotland and while in December, just over a third - 36 per cent - of agents witnessed rent hikes, January’s results show a much larger swing” he says.

“For the sake of the Scottish rental sector we hope this isn’t a growing trend, but while rent controls are on the agenda, it’s just a waiting game to gauge how the market reacts”