Braemore aiming to capitalise on new rules

SMALLER and “reluctant” landlords are set to throw in the towel as stringent property legislation comes into force in Scotland, which is expected to drive significant consolidation in the industry.

Julie Grieve, managing director of lettings agency Braemore Property Management, expects to boost the numbers of properties her firm manages by 50 per cent this year as it acquires portfolios put up for sale as a result of the legislation.

Braemore already looks after 2,000 properties in Scotland and expects to have 3,000 on its books by the end of the year.

Its parent company, Lomond Capital, has a £45 million “war chest” for further acquisitions and has snapped up three companies in recent months. The firm is also making a push south of the Border.

Lomond estimates that tens of thousands of Scottish landlords will need to find a collective £100m by the end of the year once a tenant deposit scheme comes into play in July.

The lettings firm estimates that around 224,000 rented properties could be affected by the regulations, which will see all rent deposits transferred to administrators appointed by the Scottish Government.

In addition to the tenant deposit scheme, Holyrood is consulting on introducing a mandatory tenant information pack, as well as investigating fees charged by agencies.

Grieve said: “With any regulatory changes, people won’t want to jump through hoops when they are running a lifestyle business. That will help us meet out targets.”