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Landlords dump Scottish property

Figures released by the National Landlords Association show that 24 per cent of landlords with exposure to Scotland sold property in Q2 2018.

Alongside this, 5 per cent of landlords bought property within the same time frame.

The NLA blames the Scottish Private Residential Tenancy reform for this imbalance, which commenced on 1 December 2017 and, among a host of changes to the law, removes a landlord’s ability to set fixed terms.

The association points out that this change in particular could have a damaging effect during events where demand for short-term lets increases, such as the Edinburgh Festival, and that the UK parliament should, “pay close attention as it currently consults on similar proposals for rental reforms in England and Wales”.

NLA chief executive Richard Lambert comments: “The Scottish private residential tenancy system removes the flexibility of the sector to meet the varied needs of an ever-changing population of renters, in particular students and those who only seek short term tenancies, such as during the Edinburgh Festival.

“Because student landlords now have to provide indefinite tenancies, they won’t be able to advertise their properties for the festival, as they won’t know for certain if they will be free and available by the end of July. If this sets a trend, and artists struggle to find short-term accommodation, the 2018 Edinburgh Festival could be the last to offer such a variety of talent.

“We warned these changes [said tenancy reforms] would unnerve investors in private rented homes in Scotland, and it should serve as a clear sign of what to expect if similar reforms are introduced elsewhere in the UK”.

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