Leading industry body slams rent controls in Scotland

One leading industry body has warned that there are no advantages to introducing more rent controls in Scotland.

In a discussion with Scottish government officials, Propertymark urged ministers to look at evidence of rent controls in other countries where rent controls are currently in place and are unsuccessful.

Scottish ministers introduced a 3% cap on private sector tenancies in October last year to help with the cost-of-living crisis, and it is due to run until at least March 2024.

Demand outstripping supply

Previously, Scottish Housing Minister Paul McLennan said rent controls were not to blame for the housing crisis in Scotland.

However, Propertymark says this is not the case and the crux of the housing crisis is supply and demand.

Timothy Douglas, head of policy and campaigns, said: “In Scotland, as is the case across the UK, the crux of the housing problem is that demand is far outstripping supply but the Cost of Living the legislation is having the opposite effect by pushing landlords out of the sector.

“Furthermore, rent increases have never been a significant factor, yet this legislation and the threat of further rent control in Scotland is forcing landlords to put up rents between tenancies to cover any future cost implications.”

Vital landlords are not deterred from the market

Mr Douglas added that rent controls will deter landlords from the market.

He said: “Propertymark sees no advantages in restricting rent increases or introducing any rent stabilisation measures. Flexible tenancies and rent prices driven by market forces have led to the success of the private rented sector across the UK.

“It is vital that landlords are not deterred from the market and have finances to invest and improve property standards. Increasing the supply of properties, rather than capping rents will ensure rents fall and agents and their landlords stay in the market.”

More social housing

The industry body told Scottish government officials that rent controls fail to address the real housing issues and should instead focus on building social housing.

Propertymark demanded: “We need long-term solution to address the lack of affordability in the private rented sector to ensure that more social housing is built to reduce housing need.

“Council house building has risen steadily in recent years, but many existing social rented homes have been demolished or lost through the Right to Buy scheme.”