Fees ban adversely impacts tenants
Evidence from the first Scotland Buy-to-Let Index from Your Move shows that rather helping tenants, the ban on charging tenant fees has actually resulted in the same tenants being worse off. In the two years prior to the ban, the average annual rental change stood at 0%. However, in the 21 months since the ban, rents in Scotland have increased by 2.3% – a rate much higher than that in England and Wales. This rise could be explained by agents charging increased fees to landlords to compensate for the loss of income from tenants. The landlords in turn are demanding a rise in rent to maintain their property income.
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