Breaking Property News 05/08/25

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Scottish Experience demonstrates that ‘Robust tenant protections need not harm rental markets or agency businesses’

A new report published this week by SME Professional one of the UK’s top property software companies is set to reassure letting agents in advance of the Renters’ Rights Bill which is likely to become law in England later this year.

SME Professional has commissioned a comprehensive analysis of the potential ramifications of the bill for the English rental market – comparing it to the impact of Scotland’s existing tenants’ rights legislation which has been in place since the Private Housing (Tenancies) (Scotland) Act in 2016. Key parallels between the two systems include the abolition of ‘no-fault’ evictions, the end of fixed terms, strengthened grounds for possession and landlord registration mechanisms.

The main findings of SME Professional’s report reveal that letting agents in Scotland have not only adapted successfully to the reforms since they have been implemented from 2017 but, in many cases, have benefited from them.

Launching the report, SME Professional’s Managing Director Fraser Sutherland said: “The Scottish experience demonstrates that robust tenant protections need not harm the rental market or agency businesses. Our customers in England can be reassured that the upcoming reforms may not reduce business opportunities. While regional variations across the UK will no doubt exist – between different regions or between types of landlords – on the whole, Scotland’s experience suggests these changes could actually boost demand for professional services and foster a more stable, well-regulated rental market.”

A recent survey revealed that more than 60 percent of Scottish landlords have reported annual rent increases in 2024, representing a significant increase from just 8 per-cent in previous years, with a higher proportion of properties let at market rents. These trends have directly enhanced revenue for letting agents.

Mr Sutherland added: “Fears that tighter regulation would lead to market contraction have not materialised. The private rented sector in Scotland expanded significantly following tenants’ rights reforms, with tenancy lengths increasing and landlord satisfaction remaining high. Far from triggering an exodus, the new rules have led to greater professionalism and tenant stability.”

Following the publication of the new report, SME Professional is working with the support of Scottish Association of Landlords (SAL) which represents over 60 percent of Scottish letting agents to further consult with and survey Scottish agents on the wider impacts of tenants’ rights legislation.

Welcoming the SME Professional’s report findings, John Blackwood, SAL’s Chief Executive said: “The growing legislative burden on agents in Scotland has not led to a reduction in managed properties. On the contrary, agencies have seen a slight increase in their overall portfolios. This trend indicates that, as regulatory requirements have become more complex, many landlords have opted for professional management services and have thereby strengthened agency business.”

The Renters’ Rights Bill is currently in the final stages of the legislative process. It has passed the House of Commons and is now being reviewed by the House of Lords, with the Third Reading scheduled for late July. After that, the House of Lords’ amendments will be considered by the House of Commons starting September 8th. Royal Assent is expected in mid-September.

SME Professional was launched in 2011 by Fraser Sutherland and Robin Lyles, providing a parallel offering combining cloud-based property software and bespoke website design for the property sector. The company quickly became a disrupter in the market, providing a parallel offering of cloud-based property software and bespoke website design for the property, finance and legal sectors.

The software platform now provides a wide range of functionality required for a multi-service agency. This spans automated client accounting to lettings and sales – with a strong emphasis placed on a process-driven approach which has a proven track record of saving customers both time and resources compared to other systems.

Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X

Rightmove launches major updates to its agent qualification CELA

Rightmove’s Level 3 Certificate for Estate and Letting Agents (CELA) will include a new module on Renters’ Rights from April, helping agents to get Renters’ Rights ready before May The Level 3 Certificate for Estate and Letting Agents is included as standard within all Rightmove memberships, with only a fee to the exam board to…

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Breaking Property News 05/08/25

Daily bite-sized proptech and property news in partnership with Proptech-X.

Andrew Stanton

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