Inverness estate agents stop letting out properties due to shortage as landlords face mounting legislation
AN estate agent in Inverness has stopped providing letting services due to the lack of long term rentals available in the city.
Home Sweet Home Estate Agents had been providing long-term rental services for tenants and landlords alongside selling homes, however after countless issues it decided it could no longer continue.
Inverness and surrounding areas have seen a decline in availability of long-term rental properties over several years, with an average of just seven available at any one time.
More and more landlords, it appears, are choosing to sell properties and move to short-term letting instead, due to legislative changes making involvement in the sector more difficult.
Alexandra Mackenzie, director of Home Sweet Home Estate Agents, said: “We sold the lettings side of the business a few months ago.
“The main reasons for this were that it was increasingly difficult to manage the constant changes and pressure on landlords from the government in areas such as tax and legislation.
“We made the decision that staying in the long term lettings market was not sustainable either from a financial or mental wellbeing point of view, dealing with angry landlords, at the increased expectations on them from the government and lack of control over their own properties, and tenants who were angry at not being able to find properties.
“Every day was awful and at the route of it is the lack of help from the government to support landlords or help make more stock available for tenants, to ease pressure on the private rental sector.
“More and more landlords are selling due to the changes meaning that there is less stock in the market.
“We list numerous empty ex-rental properties for sale each month and due to the increase in second home tax to eight per cent we are seeing lower new long-term investors buying than ever before, meaning these properties are not being bought to go back in to rental stock.”
She said they still have people approaching on a daily basis, desperately looking for properties to let.
Macleod and MacCallum Estate Agents have seen similar issues.
Lettings department manager Sarah-Anne Gow said: “The rental market in Inverness remains extremely busy whilst supply outweighs demand.
“Due to landlords exiting the private rented sector we have seen a downturn in the number of rental properties coming to the market, this along with the additional costs to landlords and the higher rate of Additional Dwelling Supplement for clients looking to buy rental properties to enter the market, have had an impact in higher rental prices in the area.
“There is high demand for long term rental properties in the area, in particular family homes.”
Inverness and Nairn MSP Fergus Ewing said he is aware of the issues from contacts with constituents caught up on both sides.
“I share concerns that the restrictions on landlords have driven some out of the market and forced them to sell up,” he said.
“The tax on buying a flat for let is now enormous - with the additional charge on top of the ordinary rate of land and building tax ( formerly stamp duty) at eight per cent.
“This is preventing new landlords coming into the market.
“There needs to be a fair balance between the tenant and the landlord. The higher tax and over-regulation have led to an exodus of landlords, leaving fewer properties for let and thus, with huge demand, increased rental prices.”
A Scottish Government spokesperson said: “A fairer, well-managed private rented sector is in the interest of both tenants and responsible landlords.
“Our Housing Bill includes a package of important reforms to the rented sector, and we will continue to work with tenants, landlords and investors to ensure the measures in the Bill will support our vision for improving the supply and affordability of high-quality rented housing in Scotland.”
