New research suggests there will be an exodus of landlords from the Scottish private rental sector following the removal of no fault grounds for repossession and the possibility of rent controls in City hotspots.
The lettings portal Citylets found that over 31% of Scottish urban landlords are set to leave the PRS or reduce their portfolios after the decision to remove no fault grounds for repossession.
Ina addition, 39% of Scottish urban landlords say they are likely to leave the PRS or reduce their portfolios should rent controls be introduced in City hotspots. Only 23% said their sentiment toward remaining a landlord now and in the future would remain fully unchanged.
FRigures rise higher still amongst landlords with larger portfolios of more than five properties. 43% said they will leave altogether or reduce portfolio in light of no fault removal and 54% in the event rent controls are confirmed.
Thomas Ashdown, founder of Citylets, said: “We felt the response form to the current consultation missed the opportunity to ask landlords a few straightforward questions in relation to their appetite to remain in the sector in light of changes confirmed and proposed.”
“Our findings must be of concern to all stakeholders to the debate. I no longer see how it is possible to contend that the current plans are consistent with the oft stated aim to see the PRS made better without deterring investment and threatening supply. Even allowing for some cooling off of sentiment, the findings are clear.”
“Citylets is not a political or representative body with the intent our research can find resonance in all quarters. We hope this will pay dividends today more than ever – nobody wants to see supply worsening in the Scottish PRS.
“There is clear inevitability of unintended consequences to what is being proposed. This seems set to exacerbate the housing crisis and create more homelessness, not less.”
