Scottish Councils Exploit Rent Cap Loophole, Leaving Landlords in a Bind

The Property Nomads Podcast

Rob discusses the current situation in the Scottish housing market where Scottish councils are proposing to raise rents by as much as 8.4% to cover their costs, while private landlords are constrained by rent caps.

Rob highlights the unfairness of this situation, as landlords face high mortgage rates and are unable to take advantage of the rent cap loophole. The episode explores the consequences of these policies, including landlords selling their properties and decreasing the supply of rental housing.

KEY TAKEAWAYS

• Scottish councils are proposing to raise rents by as much as 8.4% to cover their costs, while private landlords are constrained by rent caps.
• Private landlords in Scotland face rent controls of just 3% until March 2024, potentially 2025, while councils are looking to increase rents by up to 8.4%.
• Edinburgh Council has declared a housing emergency due to a lack of housing stock, as landlords are selling their properties and not being replaced by other landlords.
• The council justifies the rent increases by claiming they need to upgrade existing homes to high energy efficient standards, but private landlords are not able to increase rents to cover similar costs.
• The mismatch between rent controls for private landlords and rent increases for councils is causing issues in the Scottish housing market.

BEST MOMENTS

"Rent controls or price controls of any sort do not work."

"There's not enough housing stock because landlords are being pretty much pushed out of the market."

"It's just insanity. Insanity from the point of view of what they're trying to achieve and how they want people to get there."

"A lot of faeces close to hitting the fan up in Scotland on the housing sector."

"I just wish for a lot of things, but a bit more joined up thinking from people would be fantastic."

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ABOUT THE HOST

Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s.

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uk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast