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Linking rents to wages in Scotland is an overreaction, says apropos

The proposed “Mary Barbour Bill” by the Labour party in Scotland is a broad solution to a localised problem, according to analysis by property management firm apropos by DJ Alexander.

The analysis estimated that the Fair Rent (Scotland) Bill, as it is officially known, would tie private sector rent rises to average wages at a time when 15 out of 18 areas of Scotland have experienced below inflation advertised rent increases between 2010 and 2018 and when average wages increased by 15.4% over the same period.

Between 2010 and 2018 the three areas with above average rent inflation were Forth Valley (0.8% above inflation); Greater Glasgow (12.6% above inflation); and Lothian (23.6% above inflation). In 2018 the average rent in Scotland for a one-bedroom property increased by 1.7% and for a two bedroom by 1.5% in a year at a time when inflation was 2.4%.

David Alexander joint managing director of apropos by DJ Alexander Ltd. commented: “Between 1999 and 2018 the PRS in Scotland has grown from 5% to 14% of total housing stock whilst social housing has declined from 32% to 23% over the same period. Scotland’s 158,500 landlords provide 414,000 properties yet pay substantially higher sums both to buy properties and in personal taxation than their counterparts south of the Border.”

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