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Being a private landlord can be a great way of providing an extra stream of income, however it is not always straightforward. Not only is managing a property time consuming, but there is a lot of red tape to deal with, and legislation and tax reliefs are constantly changing.
Earlier this month as a direct result of the cost of living crisis we are all facing, the Scottish Government announced it's intention for a rent freeze and an eviction ban on rented properties until at least March 2023, and the emergency legislation bringing those measures into force is currently awaited.
Additionally, The Scottish Government has recently announced new Short-Term Let Licensing regulations, which come into force in October, meaning that Local authorities must establish a short-term lets licensing scheme by 1 October 2022.
The planned rent freeze, along with the plans to increase the energy efficiency rating of rented properties, make it challenging for private landlords. The new licensing laws will also have a major impact on private residential landlords of short-term holiday accommodation, Airbnb properties, self-catering businesses, or any other short-term lets. Anyone looking to operate a short-term let for the first time from October will need to apply to the local council for a licence before they do so, while all existing owners of short-term properties will require a licence by next April.
Rental accommodation has become more scarce in recent years as landlords leave the private rental sector due to the increasing demands on them as well as the associated tax implications. As well as the new licensing regulations for short term lets across Scotland, Perth & Kinross Council is currently exploring the possibility of introducing a Short-term Let Control Area in Highland Perthshire (similar to the control zone that was introduced by Edinburgh City Council earlier this year).
It will be interesting to see how these changes will affect the sector and market in coming months. Macnabs are here to assist our clients in any way we can through these times.
