Scottish rent prices rocketed in January 2018, according to a survey of ARLA Propertymark (the Association of Residential Letting Agents) member letting agents.
Almost half (44%) of Scottish tenants experienced rent price growth in January, a considerable contrast to the national average of 19% also reported by ARLA Propertymark.
The findings arrive following the introduction of the new Private Rented (Tenancies) (Scotland) Act on 1st December 2017, highlighting a market reaction to indefinite tenancies and the potential for rent controls.
Read up on the new Scottish tenancy rules here: https://landlordnews.co.uk/new-tenancy-rules-weeks-away-scotland/
David Cox, the Chief Executive of ARLA Propertymark, comments on the shocking new figures: “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.”
He continues: “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%) of agents witnessed rent hikes, January’s results show a much larger swing. 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.”
Landlords, if you own rental properties in Scotland, we advise you to consider how you are protecting your rental income under the new tenancy rules. Rent Guarantee Insurance is an essential peace of mind cover that ensures you still get paid if your tenants cannot or do not pay the rent.
Our 12-month policy costs a fixed price of just £139, including Insurance Premium Tax (IPT). Get quick cover online here: https://www.justlandlords.co.uk/rentguaranteeinsurance