A new report from SME Professional suggests that the Renters Rights Bill may have some benefits for landlords. The view derives from data from Scotland who recently experienced the imposition of a similar piece of legislation.
John Blackwood, the chief executive of the Scottish Association of Landlords, supports this statement. He says: “The growing legislative burden on agents in Scotland has not led to a reduction in managed properties. On the contrary, agencies have seen a slight increase in their overall portfolios.
Similar legislation in Scotland
The Renters' Rights Bill (RRB), while mainly focused on England, will indirectly impact Scotland's rental market through the broader UK legislative framework and the potential ripple effects.
However, Scotland’s Private House Act 2015 included the abolition of Section 21-style evictions. This law saw the end of fixed term tenancies, improved grounds for possession and introduced mandatory landlord registration.
Similarly, the new RRB will also end fixed term tenancies.
Benefits to Scotland
SME Professional’s managing director, Fraser Sutherland, says: “The Scottish experience demonstrates that robust tenant protections need not harm the rental market or agency businesses.”
Landlord Today says that the report claims that “letting agents in Scotland have not only adapted successfully to the reforms since they have been implemented from 2017 but, in many cases, have benefited from them.”
Whilst regulatory requirements have become more complex, many landlords have opted for “professional management services” this technique has helped to strengthen agency business.
Demand for professional agency services
While regional variations across the UK will no doubt exist, the SME report suggests that Scotland’s experience shows these changes could actually boost demand for professional services.
Landlord Today, says that the RRB is “a silver lining for letting agents – because more landlords will seek their help to keep up with the red tape.”
Recent data
In a recent survey carried out by SME, over 60% of Scottish landlords reported annual rent increases in 2024. Landlord Today says this represents a “significant increase from just 8% in previous years, with a higher proportion of properties let at market rents. These trends have directly enhanced revenue for letting agents.”
To view the full SME, click here.
