22nd June 2004

The proposed licensing of all private landlords in Scotland would be likely to increase all rents by at least 5% over inflation, jeopardise the housing of nearly half a million tenants and raise £48 million in licensing fees for local authorities. This warning was issued by the Association of Residential Letting Agents, ARLA, following the support given by ministers to SMP Cathie Craigie to bring in amendments to the Anti-social Behaviour Bill currently going through the Scottish parliament.

Under the new proposals, there would be a mandatory licensing scheme for all private landlords, each property registered and every let and the names of the tenants notified to the authorities. This would create a huge big brother-style database containing the names of every landlord and tenant in Scotland.

In addition to the privacy implications, ARLA believes that the proposed licensing scheme has the capacity to bring the letting of the 160,000 properties in the Scottish Private Rented Sector to a standstill.

Currently it takes four weeks for a Disclosure Scotland check to be carried out. For the licensing of such a huge number in a fast moving market, checks are likely to take longer. This will result in substantial delays before landlords can market a property to let which is likely to encourage them to withdraw from the Scottish market and invest in the buoyant markets of the northern English cities.

In addition, new problems with the rental market in Scotland could cause large-scale developers to reconsider building urgently needed housing whenever a proportion of the development is aimed at the rental market.

It is believed that the new licensing and registration fees would cost at least £200 a time. This would produce revenues of £48 million for the local authorities while increasing average rents of £600 a week by 5%, or £30.

Said Brian Adair, Chairman of ARLA Scotland, "The Private Rented Sector provides a valid choice in housing for those who are not owner occupiers and who cannot get onto local authority or housing association lists. The sector has been revived by the private Buy to Let Landlords. They have improved the quality as well as the quantity of the housing stock available. Now it appears that the Scottish Parliament is trying to destroy a revitalised sector of the housing market which will deprive many people of the chance to live in decent accommodation."

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