Lettings market "shows danger of rent controls"

The latest returns from Scotland's rental market show the danger of rent controls according to the country's largest independent letting agency.

Having broken the £1,000 barrier for the first time earlier this year, the average monthly cost of renting a home privately in Edinburgh fell back to three figures during the autumn months.

The statistics were provided by DJ Alexander, which reported an average monthly rent in the capital of £1,011 a month for the summer edition of its quarterly Rental Tracker, covering June, July and August. However that figure is now down to £961.

The company has some 5,500 homes under management, mainly in Edinburgh and Glasgow. It says a reduction in stock has been behind the sharp rise of some rents - mostly for family houses, some of which are 25 per cent dearer than a year ago.

'Reluctant landlords' have been finding buyers on the back of an improving sales market, leading to less homes available to let. Less stock inevitably leads to higher rents says a spokesman for the firm.

Rent control will result in more landlords selling up and therefore only exacerbate the problem. It will also stifle any new investment from would-be landlords or institutions the firm insists.