Welcome to Letting Matters issue One 2023

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Welcome to our first edition of Lettings Matters, now distinct from our established Property Matters publication. We are delighted to be launching Lettings Matters at a time when the sector is experiencing much change, and hope to offer our readers some insight on the current market situation.

The recent and ongoing changes in government legislation have led to an unparalleled period of upheaval for Landlords, but also for Tenants, who have found historically low levels of housing stock available to meet their relocation needs, as less people move within the lettings market.

Following The Coronavirus (Scotland) Act 2020, an emergency law to protect renters in Scotland during coronavirus, the Scottish Government introduced The Cost of Living (Tenant Protection) (Scotland) Act on 6th October 2022. In March 2023 amendments introduced a rent increase cap in rented housing and a further pause on some evictions.

The rent cap was initially set at 0%, effectively freezing rents. The measures were intended to protect tenants during the cost of living crisis. From 1 April 2023, the current rent increase cap of 0% for existing private rented tenancies increased to 3%. As with previous rent increases, private landlords need to give their tenants notice before they increase the rent.

Private landlords can also apply to Rent Service Scotland to increase the rent to partially cover specific increased costs incurred in the preceding six months. The maximum limit of increase is currently 3%. This limit is 6% from 1 April 2023. These rates will last ‘at least until the 1st October 2023’. Enforcement from eviction orders are also prevented over the same period except in certain circumstances.

In addition to the changes in legislation surrounding rent increases and evictions, the Scottish Government is proposing the introduction of regulations to ensure properties in the private rented sector reach an EPC rating of C by 2025, ‘at change of tenancy’, ‘where technically feasible and cost-effective’, with all other properties to follow by 2028. These present significant challenges for some Landlords. With great change comes great opportunity, some within the sector will seek greater efficiency, both in the energy performance, management and rental income of their property. The Lettings Team at Galbraith meet weekly to keep abreast of the changes in Legislation and market trends. If you require advice, just make contact with your friendly local team. n

David Corrie 01556 505 346 david.corrie@galbraithgroup.com

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