Aberdein Considine private rents expert Adrian Sangster has called for urgent action to stop a north-east housing “catastrophe”.
Mr Sangster told The Press and Journal more flats and houses should be built to keep up with demand.
However, the leasing director believes legislation changes and uncertainty from the Scottish Government is leading to private landlords and developers pulling out of the north-east and beyond.
Barratt Homes recently threatened to abandon redevelopment of the former Cordyce school in Dyce – unless councillors endorsed a backup plan which could shift affordable homes into neighbouring Bucksburn.
It has now gained backing for a new contingency plan for its proposals after threatening to “walk away” because of financial pressures.
Aberdeen City Council received £4 million less than expected from the Scottish Government to fund housebuilding for housing associations.
A fresh deal gives it an extra 12 months to find funding to build the affordable homes for Grampian Housing Association.
Fears Aberdeen will miss out on new homes
For Mr Sangster, who has worked in the private rental sector for more than 30 years, it’s a common theme he’s seeing across the country.
He said: “Ultimately, these investors don’t have to build in Scotland – they could choose to instead build elsewhere in the UK.
“A current example of this is happening right now in Aberdeen, where Barratt Homes have indicated they will walk away from a project in Dyce unless Aberdeen Council supports a back-up plan.
“At the root of this appears to be the government’s decision to provide £4m less than expected to Aberdeen for funding house building for housing associations.
“This act by the government flies in the face of their recent remarks.”
Aberdein Considine rental demand
Mr Sangster revealed rental properties are in such short supply that Aberdein Considine can sometimes receive calls for 30 to 40 calls a day to view one property.
And private landlords are now turning to selling properties as they are “fed up” with constant legislation changes.
He added: “The underlying issue is that there are simply not enough houses – either in the private rental sector or in build-to-rent.
“We simply must build more houses and flats.
“Private landlords say to us that they’ve had almost a decade of legislation changes, and they are fed up with them so will just sell the property.
“Others say they can’t afford to keep them on because of rising mortgage rates, increasing maintenance costs and the expenditure required to comply with recent changes to the repairing standard.
“However, undoubtedly the people who are being affected most by this are the people who are looking for homes but are unable to do so due to the lack of available stock.
“Many properties we put on the market are being let very quickly. In some cases we have 30-40 inquiries within a day of people wanting to view a property.
“At the end of the day, you can only let a property to one person – all the others are forced to keep looking.”
‘Housing catastrophe must be dealt with’
He believes government “barriers” are putting developers and landlords off investing in the north-east.
Mr Sangster, who has acted for thousands of landlords during his career, went on: “Everywhere developers or landlords turn, there seem to be barriers.
“Institutional landlords have indicated they want to build and invest in Scotland, but many appear to have put a pause on it all because they are uncertain of what the Scottish Government is going to introduce next in terms of policies and regulations.
“The only way they will spend their millions – and billions – is if they have assurances from the government that this is how the land lies, and this is how it will be in the long term. In short, they need stability.
“The Scottish Government needs to match its words with actions.
“Regardless of the general-election outcome, this is an issue that must remain at the forefront of Scottish politics. This housing catastrophe must be dealt with.”
The Scottish Government has been been approached for comment.
Barratt Homes refused to comment.
