Scottish landlords are increasingly considering leaving the private rented sector amid growing concerns over government legislation and political rhetoric. John Blackwood, chief executive of the Scottish Association of Landlords (SAL), highlights the urgent need for a shift in attitude from Scottish politicians ahead of the May elections.

Political Rhetoric Driving Landlords Away

John Blackwood warns that the anti-landlord rhetoric emanating from Scottish politicians is a significant factor prompting landlords to exit the market. “It’s to do with the anti-landlord rhetoric that they are hearing from our politicians,” he explains. Alongside this, measures such as rent controls add pressure, making landlords reconsider their investment in the private rented sector.

He stresses the importance of encouraging landlords as investors: “Landlords are investors and you need to encourage investors. If you frighten off investment, there’s going to be fewer properties available to rent.”

Landlords Need Recognition and Respect

With the Scottish elections approaching, Blackwood calls for politicians to treat landlords as valued businesspeople rather than pariahs. He states, “Landlords need to feel valued as investors and treated as businesses. To ignore us and make it feel like we are pariahs in society is wrong, and it does nothing to instil confidence in the sector.”

While acknowledging that landlords may not be a strong voting bloc, he urges policymakers to recognise their role in providing quality housing. “We both want the same thing. We want our tenants to be happy, we want them to stay in their properties, and we want them to be able to afford to live in them,” he adds.

Landlords Are Active, Committed Professionals

As the largest representative group of landlords and letting agents in Scotland, SAL carries the responsibility of voicing the concerns of the private rented sector across the country. Blackwood emphasises that landlords are hardworking individuals who actively manage their businesses. “Landlords are working people. It’s not a passive income, you have to constantly learn new pieces of legislation and keep up with what’s happening,” he says.

He also highlights the balance landlords must maintain: “Rents need to be affordable for tenants, but they also have to be affordable for landlords because we are running a business. If we can’t cover our costs, then we are going to think twice about continuing to invest.”

Concerns Over Rent Control Legislation

Scotland’s Housing (Scotland) Act, which includes provisions for the reintroduction of rent controls, has raised concerns among landlords. Councils are required to assess rent conditions and propose designated rent control zones by 31 May 2027. Blackwood expresses caution about the legislation, noting, “I can’t say I welcome it, and our biggest concern is that we’re introducing legislation to fix a problem we don’t fully understand.”

He points out the irony that during the previous rent control period, Scotland saw the highest percentage increase in rents compared to other UK regions. Ultimately, he suggests the issue may stem from a shortage of available rental properties, which naturally drives prices up.

Proportionate and Localised Rent Controls

Despite reservations, Blackwood acknowledges positive aspects of the new legislation. “There won’t be a blanket approach to rent control and that’s a good thing,” he says. The government has listened to concerns, ensuring any rent controls will be locally designed to address specific needs and include exemptions, particularly for landlords charging below-market rents.

He stresses the importance of awaiting detailed regulations to understand how the legislation will be implemented, noting that the next few years will be critical before any rent controls come into effect.

Pragmatic Implementation of Awaab’s Law

SAL supports extending Awaab’s Law to the private rented sector, which aims to tackle damp and mould issues following the tragic death of two-year-old Awaab Ishak in 2020. Blackwood emphasises the need for a balanced and practical approach: “We want to make sure tenants live in good-quality, damp and mould-free homes, and any legislation that tries to achieve that we support.”

He highlights the importance of understanding the causes of dampness and mould, educating tenants on maintaining properties, and working collaboratively to prevent future tragedies.

Confusion Over Energy Efficiency Requirements

Since 2019, the Scottish government has indicated that landlords may need to meet an Energy Performance Certificate (EPC) rating of C, with new tenancies required to comply from April 2028 and all private rented properties by 2033. However, Blackwood notes that uncertainty and shifting targets have left many landlords confused about the requirements.

He warns of potential challenges, including a rush to upgrade properties, difficulties scheduling work due to flexible tenancy terms, and a likely shortage of skilled tradespeople, especially in rural areas.

Private Rented Sector Remains Essential

Despite the challenges, Blackwood affirms the ongoing necessity of the private rented sector in Scotland’s housing market. “There will never be enough social housing, and not everybody can access home ownership, so where else do they go? The private rented sector,” he says.

He concludes with a call to landlords: “The million-dollar question for landlords is: are you one of these landlords who wants to continue to remain in the private rented sector and play your part in keeping Scotland’s housing market working?”

Source: Based on reporting from Property118

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