Osborne Tax Attack: Rent prices highest ever in Scotland but landlords making losses

Posted: 21/7/2016

Thanks to George Osborne's attack on landlords, who provide vital homes across the UK, Scottish landlords have been pushed into the red and rent for tenants as it its highest ever in Scotland.

Data from Your Move’s Scotland Buy to Let Index shows Scottish total annual returns fell 2.2% in the year to May.

In absolute terms, the average Scottish landlord has seen a paper loss of £3,782 in the past year.

Your Move says the initial Land and Buildings Transaction Tax introduced in April 2015 and this year’s additional surcharge on additional properties have held down house prices in May.

This has also created a shortage of homes to rent, pushing costs up for tenants.

The average rent in Scotland now stands at £549 per month. This is the highest Scottish rents have ever been, surpassing the previous record set in July 2015.

Edinburgh and the Lothians saw the biggest uplift on any region, with rents up 12% to £662.

Brian Moran, lettings director at Your Move Scotland, said: “Rents are rising rapidly as a result of the new Land and Building Transaction Tax surcharge for buy-to-let properties.

“This tax hike has dissuaded landlords from investing in the sector, leading to a shortage of homes to rent, compared to the demand for housing.

“With the limited supply of rental properties, potential tenants have been forced to compete to secure homes, pushing up rents.

“The introduction of this anti-landlord legislation from Holyrood has ensured the cost of the policy has hit tenants hardest.”

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