Letting Agents – Why are Shelter Quoting Out of Date Research to back up their Flawed Argument on Future Rental Rises
Scotland banned Letting Fees in 2012. The charity Shelter have been a big voice in persuading and lobbying the Government since it managed to persuade the Scottish Parliament ban fees in 2012.
On all the TV and radio shows at the moment, they keep talking about their Independent Research which backs up their argument that rents didn’t rise.which they say was published in 2014.
A researcher for Shelter in Scotland published these comments yesterday,
_renters, landlords and the industry as a whole had benefited from banning fees to renters in Scotland. It found that any negative side-effects of clarifying the ban on fees to renters in Scotland have been minimal for letting agencies, landlords and renters, and the sector remains healthy._
Going on,
_Many industry insiders had predicted that abolishing fees would impact on rents for tenants, but our research show that this hasn_t been the case. The evidence showed that landlords in Scotland were no more likely to have increased rents since 2012 than landlords elsewhere in the UK. It found that where rents had risen more in Scotland than in other comparable parts of the UK in 2013, it was explained by economic factors and not related to the clarification of the law on letting fees_
The report Shelter mentioned was published in December 2013ÿÿ(only 12 months after the ban).
How can Shelter quote a report today, in late 2016, when that report they use as proof ÿthat rents havent risen was published in Dec 2013, only 12 months ÿafter the ban (and you think about it, these reports take a few months_ to compile), so the report was only based on figures say six to nine months after the ban came into action (FYI – The ban was Q4 2012)
What really happened to rents in Scotland
I have carried out my research up to the end of Q3 2016, and that tells a different story
In Scotland, rents have risen according the CityLets Index by 15.3% between 2012 and today (CityLets being the equivalent of Rightmove North of the Border _ so they know their onions). When I compared the same time frame, using Office of National Statistics figures for the English Regions between 2012 and 2016, this is what has happened to rents
- North East 2.17% increase
- North West 2.43% increase
- Yorkshire and The Humber 3.21% increase
- East Midlands 5.92% increase
- West Midlands 5.52% increase
- East of England 7.07% increase
- South West 5.82% increase
- South East 8.26% increase
- London 10.55% increase
..and let me remind you of Scotland _ 15.3% increase.
See the graph below ..
Conclusion
Are you really telling me the Scottish economy has outstripped London’s over the last 4 years? Are really telling me wages and the Scottish Economy have boomed to such an extent in Scotland in the last 4 years they are now the Powerhouse of the UK .. because if they had, Wee-Nicky Sturgeon would have driven down the A1 with a blink of an eye, not even stopping at FerryBridgeÿ(M62/A1) Service station for a Bacon Bap and Black Coffee to demand immediate Independence
Rents will increase as the fees will beÿpassed onto Landlords in the coming few years. Not immediately .. but they will
If you are a letting agent and want more stock and charge higher fees.. have a look these articles on how you will can increase your fees or get more landlords to use your agency ..
- TENANT FEES BANNED _ IS THIS THE SILVER BULLET FOR YOUR LETTINGS AGENCY?
- LETTINGS AGENTS _ WHY YOUR MARKETING ISN_T WORKING (and how to get more landlords to use your Lettings Agency
kind regards
Christopher
A Freelance Property Market Journalist and
the UK's No.2 Letting Agency Growth Guru
(ie I help letting agentsÿget more landlords to use their letting agency)
PSÿIf you are thinking there has to be a different way to attract landlords to your letitngs agency in 2017 _ give me a call or email me. If you think _ the lad has a point but I_m not ready to ring him _ why not watch all of my videos (link below)
emailÿchristopher@christopherwatkin.co.uk mobile 07950 147572
450+ blog posts on getting more landlords for your lettings agencyÿhttp://how-to-grow-your-lettings-agency.blogspot.co.uk
my thoughts on how toÿsucceed in UK letting agency inÿvideosÿ (15+ videos)ÿhttps://goo.gl/Zzw4LN
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