Scottish investors are increasingly choosing to sell their properties according to letting agents (94%), Propertymark research shows.
The government’s Cost of Living (Tenant Protection) (Scotland) Act means that landlords are unable to evict tenants, while they are limited in how much they can raise the rent.
Timothy Douglas, head of policy and campaigns, Propertymark, said: “Rent control is causing problems for the sector in Scotland and we know from our member agents that as a direct result of the Cost of Living legislation rents and costs are now being more heavily scrutinised by
landlords with many putting up rents between tenancies to protect against any future cost implications.
“The crux of the housing problem is that demand is far outstripping supply, but this legislation is counterproductive for tenants, pushing landlords out of the sector and leaving little choice for those looking for a rented home.”
In order to get around rent controls a number of landlords are raising rents in between tenancies.
Propertymark argued that the emergency legislation is alienating landlords, discouraging investment in the sector and therefore inhibiting supply, causing rents to rise faster than they otherwise might have.
