News & Blog

Interested in property investment in Glasgow? Here Cairn profiles the most popular areas of the city. Investing in buy-to-let in Glasgow is a no-brainer. A bustling, modern European city with a vibrant student population, a thriving economy, vital transport links, and huge rental demand, Scotland’s largest city represents a golden opportunity for property investors. But where should you spend your money in 2025? Let’s explore Glasgow in a little more detail. Why Invest in Glasgow Property? Glasgow Fast Facts Population: 635,640 (2024) House Price Avg: £186,000 (2024) Monthly Rent Avg: £1190 (2024) Rental Yield Avg: 5% (the UK average is 3.6%) Around a third of Scotland’s entire population lives in or around Glasgow. The city itself has a population of 635,640 (as of 2024), while the Greater Glasgow area is home to around 1.8 million. The sheer number of people in this part of Scotland makes property investment in Glasgow very attractive — and for two reasons in particular: 1. There’s a Huge Demand for Rental Properties According to research by Admiral, demand for rental properties in Glasgow far outstrips supply, with 998 prospective renters for every 100 available rental properties. Only Salford (1,076 people for every 100 rental properties) has a higher tenant demand in the UK. For comparison, Edinburgh came fourth in Admiral’s list, with 535 potential renters for every 100 available properties. This demand has seen the average Glasgow rent climb to £1190 PCM, while the average time to let is only 31 days. Bottom line? If you invest in a buy-to-let property in Glasgow, it probably won’t be empty for very long. 2. Business is Booming Glasgow isn’t just home to almost two million people. It’s also the beating heart of Scotland’s economy. According to Invest Glasgow, the city region generates 34% of all Scottish jobs and plays host to one of the fastest-growing technology investment hubs in the UK. Beyond that, leading industries include public health, hotels, restaurants, distribution, banking & finance, insurance, transport, and communication. Glasgow’s workforce is diverse, highly educated, and bringing home, on average, £30,000 a year. So, not only is there a huge demand for rental properties in Glasgow, that demand is being driven by desirable, professional tenants. Property Investment In Glasgow — Area By Area Wondering where to invest in Glasgow buy-to-let property? Here are 5 key areas worth exploring. 1. The City Centre Average house price: £214,590 Home to both traditional properties and modern new-builds, Glasgow’s city centre boasts plenty of choices, no matter your target market. Although many people working in the centre prefer to live outside of its boundaries, many more call it home. This is especially true of Glasgow’s student population. The fashionable Merchant City is worth a look if you’re hoping to rent to young professionals, while areas like Townhead, Charing Cross, and Cowcaddens are all within walking and public transport distance of the city’s universities. 2. The West End Average house price: £286,000 The best West End estate agents rarely have trouble letting properties in this stunning part of the city. Popular with young families thanks to its green space, young professionals thanks to its transport links, and students, thanks to its bars, cafes, and proximity to Glasgow University, demand for rental properties here is through the roof. Of course, this level of demand has a knock-on effect, with many of the properties in the West End among the most expensive in Glasgow. But if you find something that works for your budget, you could be onto a winner. Consider areas like Hillhead, Kelvinside, Dowanhill, Yorkhill, and Partick for any of the target markets mentioned above. 3. The East End Average house price: £188,000 Home to Dennistoun, recently named the 8th coolest neighbourhood in the world (the WORLD!), the East End of Glasgow is chock-full of character. From the iconic red sandstone tenements to thriving independent businesses, the East of the city is particularly popular with students and young families. Thanks to regeneration activities brought about by the 2014 Commonwealth Games, the East End is beginning to catch up with other parts of the city after years of neglect. Yet it remains cheaper than the city centre and the West End, so you could nab yourself a buy-to-let bargain. 4. The Southside Average house price: £219,000 When you venture south of the River Clyde, you’ll find a mixed bag of property investment opportunities. A traditionally industrial area of the city, riverside regeneration has brought a modern feel to many areas, while others remain affected by social problems. Areas like Govan, Ibrox, and the Gorbals offer a variety of affordable property types boosted by vital transport links. Meanwhile, the likes of Shawlands, Newlands, Queens Park, and Langside have a trendy vibe popular with young families and professionals. These properties are pricier, but always in demand. 5. Bearsden and Milngavie Average House Price Bearsden: £437,258 Average House Price Milngavie: £356,551 Although technically in Greater Glasgow, Bearsden (G61) and neighbouring Milngavie (G62) remain popular with families and professionals alike. With great schools and handy transport links, these commuter towns offer a divine slice of Scottish suburbia, while also linking the outskirts of the city to Loch Lomond, the Trossachs, and the West Highlands. Larger houses in these parts tend to be more expensive than in other parts of Glasgow, although several affordable housing developments have been introduced over the past few years. Cairn: Property Investment In Glasgow Whether you’re looking east, west, south, or central, you’ll have plenty of choice in Glasgow. Do you want to learn more about investing in buy-to-let properties in the city? Get in touch with our property investment experts today. We’re here to help!

Edinburgh, Landlords, Letting

Edinburgh Letting: New Landlords, Read This

Discover everything you need to know about Edinburgh letting for first-time landlords. Some people become landlords by accident. They move in with a partner and want to hang on to their property. Or they relocate for work and don’t want to sell their home. So, they decide to rent it out. Others are more deliberate, viewing buy-to-let as a sensible long-term investment. No matter how you’ve arrived at your decision to let out your Edinburgh property for the first time, this post is for you. Here, we lay out the steps you need to take before you become a landlord, and what you need to do once you’ve found your tenants. New to Edinburgh letting? What you need to do before renting out your home Before you even contemplate putting your home up for rent, you need to make sure your mortgage lender allows it. If you have a standard residential mortgage, you’ll have to ask for “consent to let,” which is where your lender will give you permission to rent out your property with a residential mortgage. This is usually for a set amount of time. Otherwise, you’ll need to switch to a buy-to-let mortgage. If you don’t have a BTL mortgage and you try to rent your property on a residential mortgage without consent to let, you run the risk of breaching your contract. And if that happens, it could result in your lender demanding instant repayment of the full mortgage balance! Once you have the mortgage sorted, the next step is to amend your insurance policy to include landlord insurance. Having tenants living in your property can affect your liability. You must also register as a private landlord with the Scottish Landlord Register. Everyone named on the title deeds must do so. Failure to register is a criminal offence and can result in a fine. You can register as a landlord here. Finally, if you’re planning on renting to three or more unrelated people, this will be classed as a house of multiple occupancy (HMO). HMOs require an additional licence. Learn more about Edinburgh HMOs here. Found your tenants? Here’s what you need to do next First, it’s important to note that there’s a lot of responsibility that comes with being a landlord. If you’d rather take a hands-off approach, working with a local property management company (like Cairn) can be a big help. Learn more about our management services here. However, if you want to try your hand at being a DIY landlord, there are several things you’ll need to do: Conduct all viewings of the property Get references for all tenants Take deposits and move funds from tenants Ensure all compliance is in place for the tenants’ move-in (safety certificates/maintenance/cleaning) Conduct inventory Create the correct tenancy agreement and ensure all parties sign it Meet with your tenants and give them a tour of the property. Show them how to switch off the electricity, how to reset a blown fuse, and how to switch off the water supply in an emergency — plus anything else specific to your property. Once you’ve received your tenant’s deposit, you’ll need to place it into a Tenancy Deposit Scheme within 30 working days of the start of the tenancy. You should also notify your tenant in writing which scheme is holding their deposit. Finally, you should notify the local authority and the property’s utility providers that a tenant is moving in (and that you no longer live there) so that the Council Tax account and energy accounts can be updated. You should also let your tenant know that you’ve done this. Of course, your responsibilities as a landlord don’t end there. Throughout the tenancy, you must: Respond to reactive maintenance/emergency out-of-hour issues (weekends and evenings) Conduct periodic inspections of the property Handle tenant complaints Handle neighbour complaints Collect rent/chase rent if in arrears And at the end of the tenancy, you must: Conduct a move-out inspection Handle deposit deductions/deposit disputes Re-advertise the property and start the process all over again If this seems like too much to handle, we have friendly and qualified staff here at Cairn ready to help you with the management of your property. Whether it was accidental or on purpose, if you’re entering the world of Edinburgh letting as a landlord, Cairn can help. We can look after everything to make sure you remain compliant and your tenant enjoys a safe and happy experience. Contact us here to learn more.

Legislation

Compliance Update – Electrical Installation Condition Reports

Compliance Update – Electrical Installation Condition Reports On 28th March 2022, changes were made to the wiring regulations that electrical inspectors must follow when conducting electrical installation condition reports (EICR’s). This change falls under ‘Amendment 2’ of the 18th Edition of the Wiring Regulations, BS7671:2018: https://www.niceic.com/18th-part-2 Changes were implemented originally with a 6-month grace period and became mandatory on 28th September 2022. These mandatory changes impact the way in which electricians code items during an EICR inspection. The two most notable changes are: All consumer units in every property must have Surge Protection Devices (SPD) installed. SPD’s provide protection against sudden spikes in voltage known as transient over-voltages. They safeguard the electrical installation from this, which consists of the consumer unit, wiring and accessories. SPD’s also provide protection to vulnerable equipment with sensitive electronic circuitry, such as computers, fire fighting systems and emergency lighting. Arc Fault Detection Devices (AFDDs) must now be installed in higher risk residential buildings, including: HMOs High rise flats Care homes Other properties where there is an increased risk of fire The AFDD is a circuit breaker which uses microprocessors to identify the presence of dangerous electrical arcs and disconnect the circuit affected. They are installed onto the consumer unit and are more sensitive than conventional circuit protection devices. As a result of this change to regulations, landlords may now note that their EICR checks are coming back as ‘unsatisfactory’ if the consumer unit fails and needs replaced, as all consumer units now require the appropriate SPD to be present. Any consumer units installed without the appropriate SPD would be classified as ‘non-compliant’, therefore it is mandatory that these works are undertaken if noted on the EICR. Similarly, the electrician will determine if the property is ‘higher risk’ (such as an HMO) and may mark the EICR certificate as ‘unsatisfactory’ because an AFDD is required as another level of protection. It is again mandatory that these works are undertaken if noted on the EICR. We appreciate that this could result in quite substantial costs for landlords to comply, therefore Cairn is working hard in the background to get the best deals on cost possible for our landlords with our approved and qualified contractors. Please be assured that you are in the best hands, however, should you have any questions regarding this, please do not hesitate to contact our friendly and qualified letting team, who will be more than happy to assist. Gemma Waters ( MARLA ) Operations, Compliance & Training Manager 18th October 2022

Meet The Team

Meet the Team ( Paul Shields – Finance Director )

Meet The Team – Paul Shields – Finance Director Describe your role in one sentence at Cairn? I am responsible for the company’s long-term financial health and growth. I also look to establish strategies that will earn profits, oversee accounting operations, and produce accurate income and expenditure reports for the other Directors. What is your proudest business achievement? Helping steady our business after the financial crisis in 2008. The property sector went through a very turbulent time back then, but we managed to steer through the difficulty and come out the other side stronger than ever. How has your industry changed in the last decade? The Property industry has changed dramatically over the last 10 years. For letting there has been numerous new letting legislation changes introduced which in the main have been good and have taken most of the rogue landlords and agents out the market. For Sales, with soaring house prices over the last decade, it has made it almost impossible for first time buyers to get on the property ladder. Give us an interesting fact about yourself? Before my hectic family life, I used to write short fictional stories. Hopefully one day I’ll get back to it once family life settles down. What is the best piece of business advice you have been given? When business opportunities come your way, always say yes! Then worry about how to do it later. What advice would you give your 18 year old self? Always remember that there is no failure. There are just ways you’ve figured out how not to do something so stop being so hard on yourself and keep moving forward. Who are your hero’s inside and outside of business? In business, I admire anyone who puts everything on the line and comes through the other side a success. Outside of business, anyone who dedicates their time to giving back or helping others. Selfless people. What qualities do you most admire in others? Qualities I look for in a person are loyalty, accountability, humility, and anyone who welcomes change. How do you unwind out of work? Long walks with the dog and red wine! Favourite book/CD/DVD? A Christmas Carol (Dickens) / Any 80’s CD / Schindler’s List Where is your favourite place in Scotland ? Anywhere in the East Coast. If I had to choose one, then Elie with St. Andrews a close second.

Landlords, Legislation

Legislation Update – Answers for Landlords

Legislation Update – Answers for Landlords Rent increase and eviction ban Scotland Following our last blog on the rent increase and eviction ban issued on 6th September 2022, Cairn have been working hard in the background to obtain answers for landlords on how this will work in reality. We have received update today that The Cost of Living (Tenant Protection) (Scotland) Bill has now been published: Cost of Living (Tenant Protection) (Scotland) Bill 2022: overview – gov.scot (www.gov.scot) Overview of Bill The Scottish Government have produced this Bill, as it is believed that people who rent in Scotland are the most at risk of poverty due to the financial crisis. The emergency measures have been implemented to: Protect tenants with the cost of living crisis by stabilising housing costs Lessen stresses and impacts on the wellbeing of tenants by evictions being banned. Give tenants more time to find alternate accommodation when facing eviction Reduce unlawful evictions and also raise the level of damages paid to a tenant by the landlord if unlawfully evicted. If passed, the Bill intends to place an immediate ban on rent increase notices and a moratorium on evictions until at least 31st March 2023. Wording has also been included to allow legislation to be extended by two further periods of six months with Parliamentary approval. However, there is a requirement for legislation to be examined and reported on, every 3 three months to ensure that the Bill is proportionate and reflects the changing economic crisis. Rent increase ban The emergency legislation aims to set a permitted rate of rent increase, known as the ‘rent cap‘. The cap will be set to zero from 6th September 22 to at least 31st March 23. However, the Scottish Government do have the powers to vary this cap to take into consideration the economic crisis on a wider scale which we sincerely hope will be investigated, as it is not only tenants whom are struggling from the current crisis. The cap applies to any rent increase proposed on or after 6th September 22 and no rent increase can be issued whilst the cap of zero is in place. This legislation does not affect rent changes/increases between tenancies. The legislation does take into consideration the impact the cost crisis is having on landlords and has been updated to allow landlords to apply to a Rent Officer to increase the rent to cover some of the ‘prescribed costs‘ in the preceding six months. Prescribed costs are mortgage interest payments (for the let property) and landlord insurance (other than buildings or contents insurance) / service charges which the tenant is responsible for per the terms of the lease which the landlord has had to pay. The landlord will be required to provide evidence to the Rent Officer and where authorised, the landlord would be able to increase the rent by the lower of 50% of the increase in the ’prescribed costs‘ in the preceding six months, or 3% of the current rent level. Landlords and tenants will also have the ability to appeal the Rent Officers decision via the First-tier Tribunal for Scotland. Rent increases issued before 6th September 2022 It has been confirmed in the legislation that rent increase notices issued before 6th September 22, will still be enforceable after the required 3 month notice period to the tenant. However, tenants also has the right to apply to the Rent Officer to challenge any notices issued if they believe the increase has been set at an unfair level. Eviction ban The moratorium will stop enforcement action for induvial evictions over the next 6 months. However, safeguards have been implemented to allow enforcement of evictions in certain circumstances, these include: Cases of antisocial behaviour and criminal behaviour Cases of abandonment Substantial rent arrears (where at least 6 months worth of rent is owed at the point the eviction order is issued) Eviction applications submitted / orders issued before 6th September 2022 If an eviction order is granted before this legislation comes into force, or if a landlord has submitted an application for eviction with the Tribunal before the legislation comes into force, the case will not be affected by the moratorium. This also applies to an eviction notice issued to the tenant before 6th September 22 as these should still be enforceable in line with current legal requirements. Increases damages for unlawful evictions These changes have been implemented to discourage landlords from conducting unlawful evictions and if passed, seek to increase the award to tenants to the maximum amount of 36 months worth of rent. There is also a requirement being placed on the Tribunal to notify the relevant authorities (Police / local authority / landlord registration), that an order has been made against the landlord. With the ever changing legislation being implemented on private residential landlords, it is imperative that landlords employ reputable and qualified agents to manage their properties in Scotland. This will ensure legislation is being followed and that the most recent and correct advice on how to manage tenancies is being received. At Cairn, we have fully qualified and friendly staff waiting to assist landlords with management of their properties, we also have an in-house Compliance Manager who is both ARLA and LETWELL qualified to assist landlords with more difficult tenancy issues. Please do not hesitate to contact us to obtain further information on our management services.

Glasgow, Hints & Tips, Landlords, Letting

Glasgow Letting: New Landlords, Read This

Glasgow Letting: New Landlords, Read This Discover everything you need to know about Glasgow letting for first-time landlords. Perhaps you’ve moved in with a partner and you don’t want to sell your property. Or maybe you’ve had to relocate temporarily for work and you want to hang on to your investment. Either way, if you’re thinking of letting out your Glasgow property for the first time, this one’s for you. Here, we lay out the steps you need to take before you become a landlord, and what you need to do once you’ve found your tenants. New to Glasgow letting? What you need to do before renting out your home One of the first things you need to do before you rent out your home is to make sure your mortgage lender allows it. You’ll need to ask for “consent to let” (which is typically for a set amount of time) or you may need to switch to a buy-to-let mortgage. Otherwise, you run the risk of breaching your mortgage contract, and this could result in your lender demanding instant repayment of the full mortgage balance. Next, you’ll need to contact your insurance provider and amend your policy to include landlord insurance. Having tenants living in your property can affect your liability. You must also register as a private landlord with the Scottish Landlord Register. Everyone named on the title deeds must do so. Failure to register is a criminal offence and can result in a fine. You can register as a landlord here. Finally, if you’re planning on renting to three or more unrelated people, this will be classed as a house of multiple occupancy (HMO). HMOs require an additional licence. Learn more about Glasgow HMOs here. What you need to do once you’ve secured your tenants There’s a lot of responsibility that comes with being a landlord. If you’d rather take a hands-off approach, working with a local property management company (like Cairn) can be a big help. Learn more about our management services here. If you want to be a DIY landlord, you’ll first need to Conduct all viewings of the property Conduct referencing off all tenants Take deposit and move in funds from tenants Ensure all compliance is in place for the tenants move in (safety certificates / maintenance / cleaning) Conduct inventory Create the correct tenancy agreement and ensure all parties sign this Meet with your tenants and give them a tour of the property. Show them how to switch off the electricity, how to reset a blown fuse, and how to switch off the water supply in an emergency — plus anything else specific to your property. Once you’ve received your tenant’s deposit, you’ll need to place it into a Tenancy Deposit Scheme within 30 working days of the start of the tenancy. You should also notify your tenant in writing which scheme is holding their deposit. Finally, you should notify local authority & the properties utility providers that a tenant is moving in (and that you no longer live there) so that the Council Tax account & Energy accounts can be updated. You should also let your tenant know that you’ve done this. Throughout the tenancy: Respond to reactive maintenance / emergency out of hour issues (weekends and evenings) Conduct periodic inspections of the property Handle tenant complaints Neighbour complaints Collect rent / chase rent if in arrears At the end of the tenancy: Conduct move out inspection Handle deposit deductions / deposit disputes Re-advertise the property and start the process all over again If this seems like too much to handle we have friendly and qualified staff here at Cairn ready to help you with the management of your property. Whether it was accidental or on purpose, if you’re dipping your toe into the world of Glasgow letting as a landlord, Cairn can help. We can look after everything to make sure you remain compliant and your tenant enjoys a safe and happy experience. Contact us here to learn more.

Edinburgh, Glasgow, Hints & Tips, Student Accommodation, Tenants

Cost of Living: Money-Saving Tips for Student Tenants

Cost of Living: Money-Saving Tips for Student Tenants The cost of living crisis is biting hard, and many students are feeling the pinch. According to the 2022 Student Money Survey, the average student now spends £924 per month, while 82% of students worry about making ends meet. What’s more, four in five have considered dropping out of university at one point or another. If you’re living away from home during your studies and you’re struggling with money worries, here are a couple of handy tips to help you save and spend wisely in rented accommodation. Cost of Living Tips: Advice for Student Renters Be energy-aware to cut bills Some rental properties will bundle up the rent and utilities into one payment. However, it’s more common for tenants to pay the electricity and/or gas bills themselves. Try to be mindful of your energy usage to lower your monthly bills. Don’t leave lights on when rooms are empty (and switch to energy-efficient LED bulbs where possible); keep doors closed so heat doesn’t escape; try to charge laptops, tablets, and smartphones at uni, and don’t leave your gadgets plugged in and on standby all day and night. If you have flatmates, consider cooking together regularly (you can split the cost of the ingredients, too). That way, you’re all in the same room, and the oven/microwave/hob is getting used once rather than several times one after the other. Bonus points if you use a slow cooker — it can be far cheaper to run, as per the table below, and you’ll often have plenty left over. With the new 52p/kWh electricity cap, here’s how much certain items and devices will roughly cost to run. Take a note of where you can cut down usage to save money. Item Cost 1 kWh fan heater/ electric radiator 52p/hour 2kWh fan heater/electric heater £1.04/hour 3 kWh immersion heater £1.56/hour 5w LED light bulb 0.26p/hour 60w light bulb 3.12p/hour 40w electric blanket 2p/hour 8KG washing machine (A rating) 26p/cycle 8KG washing machine (D rating) 55p/cycle Tumble Dryer – Heat Pump – A rating £1.13/cycle Tumble Dryer – Condenser – C Rating £2.33/cycle Oven 52p/hour Electric hob halogen per ring 85p/hour Electric hob induction per ring £1/hour Microwave 900w 47p/hour 200w slow cooker 10p/hour 42” TV 6p/hour Computer monitor 1p/hour Xbox One S 6p/hour PS4 7p/hour Amazon Echo Dot 0.2p/hour Sonos One 0.7p/hour Google Nest Mini speaker 0.2p/hour Laptop 2.5p/hour American style fridge freezer 2.5p/hour 60p/day Freestanding fridge freezer 1.45p/hour 35p/day Under counter fridge 0.6p/hour 16p/day 7.5kWh electric shower 6.5p/min 9 kWh electric shower 7.8p/min Can’t switch energy providers? Switch your broadband deal instead Most fixed-rate energy deals are off the table at the moment, and switching energy providers is harder than ever. But that doesn’t mean you can’t switch and save elsewhere. Changing broadband providers can be a great way to shave a few pounds off your monthly expenses. Broadband prices are pretty competitive at the moment, and a few of the big-name providers (like BT and Virgin) even offer special student deals, usually on a rolling contract. Check out Save the Student’s guide to the best student broadband deals to see if you’re on the best deal. Heads up: before switching any utility provider, check the terms of your contract. There might be a fee for cancelling the contract early, which could make switching more expensive. If you’d like to get more posts like this in your inbox, sign up for our regular newsletter.

Buy To Let, Landlords, Legislation, Property Investment

Tax Breaks for Landlords: Will Holyrood Follow Suit?

Tax Breaks for Landlords: Will Holyrood Follow Suit? It’s all change in the UK. We have a new Prime Minister, a new Chancellor, and a new (mini) budget. For landlords in England and Northern Ireland, the tax breaks described in Kwasi Kwarteng’s budget could represent tens of thousands of pounds in savings. But for their Scottish counterparts, it’s simply a case of waiting to see if Holyrood (the Scottish Government) follows suit. In this short blog post, we recap the mini-budget’s impact on landlords and share some thoughts on Holyrood’s potential response. How will the mini-budget affect landlords? In case you missed it, here are the main points from the mini-budget that’ll affect landlords: The basic income tax rate will be cut to 19p (from 20p) from April 2023. The 45% higher rate will be abolished and replaced with a single higher rate of 40%. Stamp duty land tax will be cut in England and Northern Ireland. The limit for buyers will be raised to £250k (from £125k) — or £425k for first-time buyers. The planned increase in corporation tax has been cancelled. It will remain at 19%. The planned rise in National Insurance contributions will be reversed from 6 November. According to an analysis by tax firm Blick Rothenberg in the Telegraph, the corporation tax rate remaining at 19% will save an incorporated landlord with £250,000 in rental profits £15,000 a year. Meanwhile, the change in Stamp Duty rates means landlords buying property worth up to £250k will have less to pay. Previously, buy-to-let investors had to pay a 3% surcharge on purchases up to £125k, and a further 5% on anything between £125,001 and £250k. Now it’ll be a straight 3% up to £250k, 8% between £250,001-£925,000, 13% between £925,001-£1.5m and 15% for anything £1.5m+. Example: Under the new rules, Stamp Duty for a property worth £249,000 in England will be £7,470, down from £9,950 under the old rules. However, much of this will not affect Scottish-based landlords The cut in additional rate income tax (from 45% to 40%) on earnings above £150,000 won’t apply in Scotland. The rate in Scotland will remain at 46% for the time being. Similarly, the cut in basic rate tax from 20p in the pound to 19p won’t be seen in Scotland. And the Stamp Duty cut will only apply in England and Northern Ireland. Scotland has its own system: Land and Buildings Transaction Tax (LBTT). The current LBTT rates mean buy-to-let investors need to pay a 3% surcharge on purchases up to £145k, 5% between £145,001-£250,000, 8% between £250,001-£325,000, 13% between £325,001-£750,000 and 15% for anything £750,001+. So, for a £249,000 property in Scotland, LBTT is currently £12,040 — a significant difference from south of the border. Will Holyrood mirror Westminster? That is the question. And right now, the answer seems to be “no.” The First Minister, Nicola Sturgeon, has heavily criticised the Chancellor’s decision to abolish the top rate of income tax and has hinted that she has no interest in “blindly following suit”. As it stands, the Scottish Government probably won’t make a final call on income tax rates until its draft budget is presented to Holyrood. We’ll be keeping a close eye on developments. If you’d like to get more posts like this in your inbox, sign up for our regular newsletter.

Legislation

Scottish Rent Freeze and Eviction Ban – the latest update

Our in-house Compliance Manager attended a webinar on 14th of September 2022 with Daryl McIntosh from ARLA in the hopes to obtain answers for our landlords on the latest bans implemented by the Scottish Government. Sadly, we did not obtain the answers to the questions which we had hoped for, however have gained further information and legislative insight for our landlords which is detailed below. This is where agents are crucially important, smaller landlords that manage their own properties should look at reputable agents whom will follow legislation and support the landlord and give correct advice to get through the financial crisis and ever changing regulations being forced upon them. We will continue to update our landlords as new information is received, however any immediate questions should be directed to our Compliance Manager at: gemma@cairnletting.com Many landlords may be aware that on the 6th of September 2022, the First Minister for Scotland announced an immediate ban on rent increases and evictions in the Scottish rental market. This is part of a larger legislative programme to make a ‘stronger and more resilient Scotland 2022 to 2023’. Eighteen bills are set to be introduced during the 2022 to 2023 parliamentary year and further information on this is provided below. However, we will firstly look at the immediate rent freeze and moratorium on evictions. This ban has been implemented by the Scottish Government to support tenants through the cost-of-living crisis and is the focus of the 2022-23 programme. The programme outlines emergency legislation which will be implemented until the 31st of March 2023 and puts in place freezes on rent increases and evictions, along with a new tenant’s rights campaign. A new website is also being created which will provide tenants with information on a range of grants and support available to help through the cost-of-living crisis. It is important to note here that all parliamentary business has been suspended because of the death of Queen Elizabeth II. This has provided Ministers with more time to work on emergency legislation before issuing this out to the public. Rent increase notices It has been made very clear to all that as of 06/09/22, an immediate ban is in place on issuing rent increase notices to tenants. This means that landlords cannot increase rents after 06/09/22 or before 31/03/23. This is a blanket ban across all sectors including Social Housing. What does this mean for rent increase notices issued before 06/09/22? Sadly, no one currently has the answer to this question until the legislation is issued to all sectors. Our advice to landlords would be to air on the side of caution. Some housing experts believe that Ministers may be currently trying to word the legislation in a way that it bans all increases including notices which do not take effect until after 06/09/22. If the legislation is worded in this way, it could result in landlords needing to refund tenants the increased amount collected so the best approach currently is to hold off enforcing any increase issued until the legislation is announced. What if the tenant has already agreed to the rent increase notice served before 06/09/22? Arguments have been made that this would fall under contractual law, and it would be illegal for the Scottish Government to ban this, however they may look to supersede contractual law and again, our best advice is for landlords to be cautious enforcing notices until the legislation is issued in full. Will the temporary regulations be extended after March 2023? Again, no one currently has the answer to this, but it is believed that the Scottish Government may continue renewing the legislation (as was done during COVID) until legislation is made permanent in Scotland. It is expected that many landlords will issue increase notices to tenants in January 2023 to take affect after March 2023, therefore the Government are most likely looking into this already to have measures in place to stop this from happening. Can the tenancy be ended, and a new agreement created at a higher rent? The current belief is no, however this has not been confirmed. Again, we would advise landlords against taking this approach as the Government could request for any increases to be returned to the tenant after the legislation is issued in full. When will the legislation be issued? Unfortunately, it could potentially take 3 months or more for this regulation to be passed by Parliament, but the First Minister is wanting this to be passed quickly. We are all in the dark until this regulation is passed and issued, therefore landlords are best to be cautious until further information is received. Evictions It has been confirmed that the First-tier Tribunal for Scotland, Housing and Property Chamber and Sheriff Officers have been given no guidance from the Scottish Government on how to interpret this ban. Sadly, the decision makers appear to be as much in the dark as we all are. One belief is that the COVID emergency legislation will be utilized for this ban. Can eviction notices still be served on tenants? In theory, yes. The eviction notice is merely a request from the landlord to get the property back from the tenant and it is believed that this would not be classified as an eviction. If the tenant agrees to vacate at the end of the notice (request from the landlord), then this should be seen as a mutual agreement to end the tenancy by both parties. However, we cannot guarantee this, and the regulation could potentially include reference to ban eviction notices being served. How that will work and be monitored in practice, we do not know. What happens if the tenant does not leave at the end of the notice to leave / quit? This is where the regulation will most likely take effect, it is suspected that there will be a ban on the Tribunal issuing eviction orders and a ban on Sheriff Officers enforcing these orders. We still recommend that applications are submitted to the Tribunal as we do suspect there will be backlog of applications that the Tribunal will need to work through after 31/03/23 (if the regulation is not extended). We saw this happening with the Tribunal during COVID legislation where there were massive delays on applications being heard due to the backlog received throughout the pandemic. Will all eviction grounds be banned? All eviction grounds have been permanently made as ‘discretionary’ following the Coronavirus (Recovery and Reform) (Scotland) Act 2022, where the Tribunal need to follow a ‘reasonableness test’ and ensure that pre action protocols for rent arrears have been followed. We suspect that similarly to the COVID legislation, some eviction grounds may still be heard such as tenant abandonment. However, we will be unable to confirm this until the regulation is issued. What will happen with applications made to the Tribunal before 06/09/22? Will these still be heard? Unfortunately, we are unable to answer this question as no guidance has been issued to the Tribunal or Sheriff Officers for pending cases / applications pre 06/09/22. We are aware that the Tribunal are currently still hearing cases, but this may cease shortly until the regulation is issued. What about an eviction order or rent order that has just been issued by the Tribunal, can this still be enforced? It is believed so, however would advise landlords to be directed by the Tribunal / Sheriff Officers on what they are currently authorised to do. We would suggest that landlords are cautious until regulations are issued in full. Legislative Programme 2022-2023 Housing Bills (2) – Rent Controls. As part of the Governments 2040 housing plan, it is intended that rent setting / rent pressure controls will be introduced to Scotland. It is believed that this will start from percentage based restrictions being implemented for rent increase notices. This will mean that landlords will only be able to increase rents in Scotland by a certain percentage determined by the Scottish Government or local authority. The end goal is rent setting which will dictate how much a landlord can increase a rent by. Housing Bill (2) – Energy Efficiency measures Currently there is no minimum standard set in the private rented sector as this was delayed due to the Coronavirus pandemic. However, it is expected that a consultation will be issued in 2022 setting a minimum banding in Scotland. We would strongly advise landlords to start planning / working towards banding now to avoid large upfront costs when this legislation deadline is issued. Cairn is currently in talks with energy efficiency specialists to see if there is funding available for landlords and we hope to issue information out to our landlords regarding this over the coming months. New Deal for Tenants By 2025 the Scottish Government intend to: Enhance rights for tenants, Implement new requirements for data collection on rents in the PRS, Implement cross-tenure housing standards, Introduce a new Private Rented Sector Regulation, and Legislation to reinforce a new successful system of national rent controls. Short term (holiday) lets legislation Many landlords may be inclined to move to holiday lets for their rented property due to the ever-changing legislation being placed in the PRS. However, the Scottish Government are also implementing regulations within this sector: Any new holiday let host/operator (owner), will need to apply to the local authority for a licence to operate as of 1stof October 2022. After this date, new operators/hosts must have a licence. Any existing operator/host will have to apply for a licence to operate by 1stof April 2023. As of 1stof July 2024 it will be illegal to operate without a licence in all circumstances. Ever considered renting out your property at a higher monthly rental figure with no stress as someone else is taking care of all the set up for you– sound too good to be true? With over 20 years of property management experience, particularly in the highly regulated HMO market, one of our services is also hosting cAIRn BNB which is a natural fit to our existing management services. We offer a strictly ‘hands on’ BNB experience, tailor-made specifically for you, whilst maximising your overall monthly rental income. We pay close attention to market trends and any upcoming local events to ensure all prices fall in line with accurate rental prices across the board. Cairn BNB presents a fantastic opportunity to earn higher income where the fast-paced environment is both exciting and highly profitable, as opposed to the traditional professional letting route. New hosts and operators (Did you know?) If you were not using your premises to provide short term lets before 1 October 2022, you cannot take bookings or receive guests until you have a licence. All hosts and operators need to have a licence by 1 July 2024. There are four types of licence for short term let accommodation Secondary letting– the letting of property where you do not normally live, for example a second home that is let to guests Home letting– using all or part of your own home for short-term lets, whilst you are absent. An example of this could be whilst you are on holiday Home sharing– using all or part of your own home for short-term lets, whilst you are there Home letting and home sharing– operating short-term lets from your own home while you are living there and for periods when you are absent With the ever changing legislation being implemented on private residential landlords, it is imperative that landlords employ reputable and qualified agents to manage their properties in Scotland to ensure legislation is being followed and they are receiving the most recent and correct advice on how to manage their tenancies. At Cairn, we have fully qualified and friendly staff waiting to assist landlords with management of their properties, please contact us to obtain further information on our management services.

« 1 … 9 10 11 12 13 … 33 »

Buy To Let, Glasgow, Investment, Property Finance

Property Investment In Glasgow: Where To Spend Your Money in 2025