Proposals to fine Scottish landlords up to £25,000 for illegally evicting tenants only vilifies the sector and risks driving out investors, a leading lettings agency boss has warned.
David Alexander, CEO of DJ Alexander Scotland, says the government’s ‘New deal for Tenants’ consultation paper suggests removing the current process for calculating damages for an unlawful eviction and instead, fining landlords up to 36 months’ rent if there is an unlawful eviction, which they calculate as 36 times the average Scottish rent of £693, working out at £24,948. In Edinburgh, this could be nearer £40,000.
The current mechanism for estimating damages requires a surveyor’s valuation which often results in a nil valuation.
The Scottish Government proposes that, as only a small number of cases have ever been brought, reform would help to simplify the process for a tenant to challenge an unlawful eviction, increasing access to justice.
“This would in turn deter landlords from carrying out an illegal eviction as the risk of challenge and penalty will be higher,” says Alexander.
Read more about evictions.
He says the intention seems to be to vilify and attack landlords and property investors and put all rights in favour of tenants.
Alexander, who runs leading Scots firm DJ Alexander, adds: “The majority of those involved in the private rented sector only evict as a last resort and would never consciously initiate an unlawful eviction, yet this paper seems to imply that this is a daily event and standard practice for landlords and agents.”
He believes the government’s plans run the risk of frightening many landlords and investors out of the market into property south of the border or out of the sector altogether.
“If this is the intention of the Scottish government then that is fine, they must do what they think is appropriate and explain afterwards where they will place the 700,000-plus tenants that currently live in the PRS in Scotland,” he adds.
Credit: Source link
