The Royal Institution of Chartered Surveyors has urged the Scottish Government to apply caution to its proposed rent reforms.
The Government has already made it clear that it will go ahead with abolishing the ‘no fault’ ground for repossession in new legislation this autumn. It is currently consulting on rent controls.
The portal Citylets released figures showing that around a third of landlords would quit the industry or reduce their portfolios if they cannot get their properties back at the end of a tenancy, and about 40% would take similar action if rent controls come in.
Sarah Speirs, director at RICS Scotland, said both moves should be “approached with caution”.
She said: “Rents must be free to follow the market. Removing the automatic right of landlords to end tenancies at their end date is likely to prove a barrier to new investment in the sector and could result in smaller landlords leaving the market, at a time when supply is critically low.”