Government must listen to concerns among landlords and tenants, says ADRIAN SANGSTER
Volatility and unpredictability are two words which have been used all too often throughout 2022 and for good reason. Whether it’s energy, fuel, groceries, interest rates, inflation, the wider economy and indeed politics, these two words perfectly describe what we’ve been through.
It may feel like hyperbole to suggest this has been one of the most difficult years we’ve ever seen but it’s certainly coming close.
Many subjects should in fact be fairly boring – and in fact most of the above areas have been exactly that (possibly politics aside) for many years.
One area that should also be quite mundane and to some degree, predictable, is the Private Rented Sector (PRS).
It was, more or less, until the Covid crisis and like other areas, all governments put in place temporary measures to try and insulate all of us from the worst financial effects of the pandemic.
However, when it comes to PRS, the policies which were created have now become somewhat of a problem for the whole sector, both tenants and landlords.
T.S. Elliot said that “home is where the heart is”, but for many of those in Scotland, starting that journey has become increasingly difficult, with the supply of private rented properties failing to meet growing demand.
It is debatable where exactly the core issue lies, but undoubtedly the Government has a big role to play.
To say the sector has become a political football would be an understatement, and whilst good intentions have been at the heart of policy making, the unintended consequences are now all too obvious.
Landlords and tenants are suffering and whilst we know that governments north and south have a range of tough problems to deal with, if we are to try and make progress in this area and ultimately create a better balance then ministers need to apply some focus.
Working with both tenants and landlords, we see every day, at first hand, the very serious problems which have come about through policies which have been designed without thorough consultation with all parties and stakeholders.
In my 30 years, I’ve had the privilege to assist thousands of landlords and tenants – providing people with a safe and comfortable home at a fair rent.
Whilst landlords have been a pretty easy target for politicians – and don’t get me wrong, I’ve seen some wrong ‘uns in my time – the caricature created is unfair.
The vast majority of landlords are not vast corporations with huge portfolios of properties, neither are they the characters portrayed by (for those of a certain age) Rigsby in Rising Damp.
Most have maybe one property, such as those inherited when a loved one has died.
Some might sell the property but others might view it as a chance to use it as a reasonably unexciting but steady way to save and supplement a limited income.
However, the regulations around being a landlord were already stringent prior to Covid but with the introduction of new legislation during the last couple of years, being a landlord has become a bit of nightmare, especially if you are someone who simply owns one rental property and are not a property expert.
It is then perhaps unsurprising that a growing number of landlords have decided that, well, it’s just not worth the hassle. And this is a problem.
The flexibility that the PRS offers appeals to many people and it is their accommodation of choice.
It could be couples living together for the first time, or someone working in an area for a short period. Whatever the reasons, the PRS has played an important part in Scotland’s housing mix.
Build to rent will definitely help in the longer term, but won’t offer the variety of property types, locations and style that are in demand at any given point.
There have been some good initiatives to help with housing shortages – Aberdeen City Council for example, ia bringing 500 properties back into use, but why have they been allowed to stay empty for so long? Yet another discussion to be had!
In the end, it does no one any good simply to criticise government, but when it comes to the PRS it is vital that government listens and embarks on proper consultation if we are to avoid an extended housing crisis in 2023.
Adrian Sangster is leasing director at Aberdein Considine
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