Rent controls in Scotland: ‘Unworkable and unaffordable’

The Housing Scotland Bill must be scrapped or significantly amended, a leading property firm warns.

DJ Alexander, Scotland’s largest lettings and estate agency, says that the proposed rent controls will do more harm than good.

A recent report by the Institute for Economic Affairs (IEA) found that rent controls have consistently failed to achieve their intended objectives.

They increase prices, reduce the availability of properties and lower the quality of housing.

Landlords, discouraged by lower returns, are less likely to invest in repairs or improvements, further deteriorating the housing stock.

Scotland Housing Bill is ‘unworkable’

The chief executive of DJ Alexander, David Alexander, said: “This is further proof that the Scotland Housing Bill, in its current form, is simply unworkable.

“The IEA report states, what everyone in the sector already knows, that rent controls have never worked and never can work because they simply make the situation worse for tenants rather than better.”

He adds: “They lead to reduced investment, fewer homes, which are of poorer quality, resulting in greater demand and higher rents for tenants.

“There must now be some reflection on whether the Scotland Housing Bill can continue in its current form given that if it is implemented it will make a terrible situation even worse.”

Additional costs of monitoring rents

The firm says that IEA’s findings are supported by Scottish council leaders, who have raised concerns about the additional costs of monitoring rents under the Housing Scotland Bill.

Edinburgh City Council estimates that compliance would cost more than £5.5 million – a burden it says it cannot afford.

The warning from DJ Alexander comes as Scotland’s private rented sector continues to struggle.

Following the introduction of rent controls in 2021, the number of available properties fell by 60,000.

While it has since recovered slightly, it remains 50,000 units below pre-control levels.