‘The SNP vilified landlords – Sturgeon’s rent cap was foolish and shortsighted’

Michael Lawson and his family claim to be Fife’s biggest landlord, focused on only buying homes to let in three postcodes which span Scotland’s eastern county.

The 39-year-old grew up watching his parents buy, refurbish and refinance properties. 

“It’s a big thing in property these days, with trainers charging a fortune to learn how to do it. But back then, recycling your cash just seemed like the obvious thing to do – and the only way to scale. 

“Mum and Dad would always be taking me along to renovation projects to help scrape walls and sweep up after the tradesmen. We are not from money, so what they achieved was all the more inspiring.”

Mr Lawson has since followed in his parents’ footsteps, and puts his portfolio of more than 70 properties down to “25 years of family graft”. 

His parents still own some of their portfolio separately. The plan is for Mr Lawson to eventually buy them, so the long-term tenants living in them won‘t have to move out. Some of Mr Lawson’s tenants have been in his properties for 15 years.

The buy-to-let investor bought his first property aged 21 after he left university and joined a banking graduate scheme. It cost £75,000, and he still owns it.

“At the weekends, I had a job for a marketing agency doing events. I scrimped and saved up the £7,500 deposit. I even managed to agree to pay the estate agent for the legal fees in instalments.

“I rented it out straight away for £495 per month, and my mortgage at the time was £350 per month. Then the base rate started dropping, and within a series of months my mortgage was less than £100 and I was making a healthy profit.”

Not long afterwards, Mr Lawson’s employer downsized and he suddenly found himself out of a job.

He moved to London to work in sales, but quickly realised life long-term in England’s busy capital wasn’t for him. So he started buying more properties back up in Scotland.

Mr Lawson said: “Every time I got a bonus I’d buy another flat. After five years in London, I had about 12 properties.

“Post-financial crash, house prices tanked which meant I could pick up some real bargains. I thought I was doing well. Interest rates were low and cash flow was good.”

But then Mr Lawson’s job took him to Dubai, where he has been living for the past eight years. He helps American universities recruit students from across Africa, the Middle East and Europe.

For a moment, he pressed pause on his buy-to-let business. Then the fever of Fife caught hold of him once again.

“Lots of my friends had ended up as tradesmen, so they’ve been supporting me,” he said. “My parents retired full-time in their 50s, but my mum now works as the lettings manager.”

The business has grown to the extent that, at one point, the Lawsons were overseeing six property renovations at the same time. 

A few months ago, they hired a staff member who solely manages customer service, so maintenance issues can be dealt with the same day.

Mr Lawson said: “When I first worked in London, I lived in a horrific shared flat. I don’t want to be that guy. And I don’t have to be that guy.

“We’ve got a reputation for providing high-quality homes. I refuse to let anything we wouldn’t move into ourselves. We’ve spent £48,000 on getting them all up to EPC [energy performance certificate] C, with new kitchens. They look like new builds on the inside.

“I rent to a lot of mates and rent is so much these days that tenants should be expecting a good service. Dodgy landlords are old hat. The modern landlord is not your mom-and-pop shop. If you’re not prepared to run a business, put your money in an index fund.”

Asked whether he intends to buy more properties, Mr Lawson said he is waiting on the Scottish government.

Under rules imposed last year by Nicola Sturgeon, the former first minister, the Scottish government limited rent rises to 3pc on existing tenancies. As a result, rents for new lets in Scotland rose by 12.7pc in the year to July, compared to the UK average of 10.5pc – according to property website Zoopla

Mr Lawson said: “I try not to put the rent up, and when tenants say they want to leave I’m gutted. This idea that we want to evict tenants to push up rents is nonsense.

“These policy decisions have unintended consequences. You’re seeing populist policies to win the votes. A 3pc rent cap is very foolish and shortsighted.

“With any business, there’s a commercial bottom line. If you can’t pay the bills, people will have to sell up and walk away.”

Every day, Mr Lawson said his family receives calls from tenants saying they’re being evicted by other landlords.

“The Government has vilified being a landlord. But I’m really proud to say I provide good quality housing to my community.

“If someone told me they wanted to become a buy-to-let landlord now, I’d say don’t bother if you’re not buying at least 20 or 30 properties via a limited company. It’s not worth it and rent will be swallowed up by costs.”