Cost of Living Act: member survey results
In November and December 2022 SAL conducted two surveys of landlord members and a survey of letting agent members, to gauge the impact of the Cost of Living (Tenant Protection) (Scotland) Act on the private rented sector (PRS). This is the temporary legislation which has introduced a freeze on most rent increases and a delay to the enforcement of most eviction orders granted by the First-tier Tribunal.
The findings of these surveys are being used to assist us with our legal challenge to the Cost of Living (Tenant Protection) (Scotland) Act.
- The legislation will lead to a reduction in the size of the PRS in Scotland
- A smaller PRS puts upward pressure on rents and reduces choice for tenants
- 54% of tenants are paying rent below market value
- 65% of landlord respondents are dependent on rental income for their own day to day living costs.
- Half of landlord respondents are retired
- 25% of landlord respondents report that they are in financial difficulty due to issues related to their PRS properties
- Rent arrears have increased overall since the rent freeze and eviction moratorium was announced in September 2022
- Average total rent arrears, per respondent are now at £2662
- There is a significant increase in the number of properties where members report their outgoings now exceed income
- More tenants will be evicted as a result of the legislation, as landlords are forced to sell up unsustainable, loss-making properties
- 87% of landlords who are planning to sell up, state the Cost of Living Act as a factor in their decision or the sole reason