Scotland

Scottish rents increase – lesson for Labour?

RLA
Written by RLA

Labour proposals for the private rented sector include the eradication of letting agent fees. However, Scottish experience suggests that rents will increase to cover lost costs, so says LSL Property Services…

Labour proposals for the private rented sector include the eradication of letting agent fees. However, Scottish experience suggests that rents will increase to cover lost costs, so says LSL Property Services.

Labour proposals for the private rented sector (PRS) include banning letting agent fees; something that the RLA argued several months ago would be detrimental for tenants. See: “Labour’s plan will increase cost of rents”.

Information gathered implies a £26 per month increase in rents in Scotland. Two years ago in 2012, before a ban on letting agent fees was implemented, rents were stable at £508 per month. Today, rents are on average at £534.

Advocates of the ban would argue that inflation will have played a role in this increase, and not the outright ban of letting agent fees.

The RLA take a different approach and warned, over a year ago, that the ban would result in greater costs for landlords. See: “Shelter want an end to agent fees”.

Simply put, it would be prudent of Labour and policy makers to consider the ramifications of proposals for the very people they are trying to protect.

Further Information

About the author

RLA

RLA

The Residential Landlords Association (RLA) represents the interests of landlords in the private rented sector (PRS) across England and Wales. With over 23,000 subscribing members, and an additional 16,000 registered guests who engage regularly with the association, we are the leading voice of private landlords. Combined, they manage almost half a million properties.

2 Comments

  • The agent needs paying somehow – if they can’t charge the tenant then they’ll shift the charge to the landlord. As a landlord, I’ll need to look at how long the tenant might stay (could be as little as 6 months) and will need to set my rent so as to recover the extra cost in that time (as I do with other costs, direct and indirect, related to a change in tenant).
    If the tenant stays longer (my current tenants seem very settled) then they’ll end up paying time and time again – to my benefit 🙂

  • When will governments ever learn that the more you fiddle with the housing market and try to regulate it, the more expensive it becomes for the end user – the tenant and home owners in general – as they have to ultimately bear the cost of the regulation. More regulation means less supply and less choice for tenants.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.