Propertymark warns against rent caps as Scotland’s housing crisis worsens

An industry body is calling for action to tackle Scotland’s housing crisis.

Propertymark is warning the Scottish government not to rely on rent controls and instead focus on investment in the private rented sector.

The news comes after Shelter Scotland reveal Scotland’s housing emergency is impacting 2.3 million adults.

More than four in ten adults in Scotland are now affected by the housing emergency

According to housing charity Shelter Scotland, more than four in ten adults in Scotland are now affected by the housing emergency (42%), an increase of 800,000 people in just four years, up from 36% in 2021.

Director of Shelter Scotland, Alison Watson, said: “It’s been a year since the Scottish Parliament declared a housing emergency. Since then, homelessness has gone up and social housebuilding has gone down.

“Last week, the Scottish government announced a Programme for Government with no plan to end the housing emergency. Instead, we had a Programme for Homelessness which says nothing about the 10,360 children who are trapped in temporary accommodation, which experts say exposes them to violence, vermin and isolation.  This simply cannot continue into the next government.”

Don’t focus on rent controls

Propertymark has urged the Scottish Government to move away from rent controls and instead focus on encouraging investment in the private rented sector to help tackle the housing crisis.

Propertymark criticised the Scottish Budget to raise the Additional Dwelling Supplement (ADS) from 6% to 8%, warning it will discourage new landlords from entering the market and further worsen the crisis.

The ADS, introduced in April 2016, applies to transactions involving the purchase of an additional residential dwelling over £40,000, including buy-to-let investments and second homes.

Timothy Douglas, head of policy and campaigns at Propertymark, said: “Instead of focusing solely on rent control through the Housing Bill, the Scottish government should concentrate on pro-growth policies that will make housing more affordable.

“These include cutting the astronomical 8% surcharge for buy-to-let homes under Land and Buildings Transactions Tax, providing grants to support the private rented sector to ensure properties are more energy efficient, and constructing additional social housing.”

He adds: “Any action plan must also include a review of all costs and taxes impacting private landlords, and the Scottish government needs to urgently revise the bands and reduce the rates for Land and Buildings Transaction Tax to help more people get on the housing ladder.”