BREAKING: Scots government U-turns on rent freeze after ‘listening to landlords’
The Scottish government has ‘seen sense’ and converted its controversial rent freeze announced last September into a ‘rent cap’, limiting rent rises in the private sector to 6% from April 1st this year.
This decision was announced by housing minister Patrick Harvie (main picture), who it is claimed has listened to the concerns of landlords and letting agents in Scotland.
Only a week ago leading figure Jim Parker wrote exclusively for LandlordZONE, warning that the measures, along with the recent increase in stamp duty for buy-to-let purposes, had “all got too much for the private investor who has consistently propped up and supported the rental sector for the last 20 years” and that many were leaving.
David Alexander, CEO of DJ Alexander Scotland Ltd, says: “Given the level of feeling from landlords, property investors, the build to rent sector, universities, the farming community, and others that the rent freeze was damaging the sector and reducing the availability of homes for tenants it is appropriate that the Scottish Government has seen sense and adopted a more conciliatory approach. To do anything else would have simply exacerbated the current housing shortages.”
Knee-jerk
Oli Sherlock (picutred), Director of Insurance at Goodlord, adds: “A rent freeze is a knee-jerk reaction which, although it might help some tenants in the short run, is unsustainable and has the long-term impact of pushing more landlords out the market and squeezing the availability of rental homes.
“A price cap is a more sensible step forward than a freeze, but it’s still not addressing the key issues facing the market today.
“We have an economic and regulatory environment that is driving landlords away from the sector and not enough homes to go around.”
Pic credit: Patrick Harvie/Twitter
