Almost half of tenants in the private rented sector in Scotland saw their rent costs rise in January, much higher than in the rest of the UK, new research shows.
Rents increased for 44% of those renting a home in Scotland, well above the national UK average of 19%, according to the latest monthly report from the Association of Residential Letting Agents (ARLA).
The findings come following the introduction of the new Private Rented (Tenancies) (Scotland) Act on 01 December 2017, which ARLA says highlights a market reaction to indefinite tenancies and the potential for rent controls.
‘Rent controls have a history of dramatically deteriorating property conditions as landlords struggle to meet mortgage payments in addition to maintenance costs,’ said David Cox, ARLA chief executive.
‘However, it seems the very idea of these controls and open ended tenancies is now affecting rent prices for tenants as in anticipation, landlords are raising rents to make sure they can make ends meet, should they be introduced,’ he explained.
‘It’s now been two full months since this form of new Private Residential Tenancy came into force in Scotland and while in December 36% of agents witnessed rent hikes, January’s results show a much larger swing,’ he pointed out.
‘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,’ he added.
