Scotland’s rent control plans face criticism over data gaps

Industry bodies claim that rent control guidance published by the Scottish government has failed to address industry concerns and will not solve the housing shortage.

The Scottish government has published guidance to help local authorities assess whether rent controls should be introduced in their areas.

Under the Housing (Scotland) Act, councils must first assess rent conditions in their areas and submit proposals for designated rent control zones to the Scottish government by 31 May 2027.

Evidence-based understanding

The guidance says that all local authorities in Scotland will be required to carry out periodic assessments of rent conditions within their areas.

These assessments must consider:

• The level of rent payable under relevant tenancies within the local authority area.
• The rate of increase in rent payable under relevant tenancies.
• Where applicable, the impact of rent levels and increases on properties, tenants and landlords in rural areas within the local authority.

The Scottish government says the assessments would provide an evidence-based understanding of rent conditions across the country.

The guidance said: “The purpose of this assessment is to ensure that there is an evidence-based understanding of the level of private rented sector rents in each local authority area and to provide insight on how these levels are changing over time. This will provide the evidence base for decision making on the designation of rent control areas.

“By mandating cyclical assessments and reporting, the act seeks to ensure that any intervention is grounded in up-to-date information on rent conditions within the local authority.”

The government added that assessments must be completed within defined reporting periods, with councils required to carry them out every five years.

Driven by robust evidence rather than political campaigning

However, industry bodies have criticised the Scottish government’s approach to rent controls.

Propertymark has warned that a comprehensive rental data system will not be available during the first assessment cycle, raising concerns that councils could make decisions about introducing rent controls without access to reliable data.

Hazel MacIver, policy and campaigns officer at Propertymark, told Property118: “While Propertymark welcomes the publication of guidance setting out how local authorities should assess rent conditions, concerns remain about whether councils have access to sufficiently reliable data and resources to make consistent, evidence-based decisions.

“The guidance acknowledges that a more developed rental data system will not be available for the first assessment cycle. With reports due to be signed off ahead of next year’s local government elections, it is essential that decisions are driven by robust evidence rather than political campaigning.

“Where there is significant doubt about data quality, there should be a presumption against introducing rent controls, as assessments based on insufficient evidence risk being challenged.”

She added: “Already stretched local authorities must also have the resources to collect and analyse reliable data; otherwise the quality of assessments could vary across Scotland.

“For landlords and letting agents, inconsistent or poorly evidenced decisions could create uncertainty about where rent controls may be introduced, with potential consequences for investment, property maintenance and the supply of rental homes.

“Assessments must be transparent and proportionate, taking account of the impact on landlords, tenants and the availability of properties, including in rural communities. Rent controls will not solve Scotland’s housing shortage, and measures must not discourage landlords from providing much-needed rental accommodation.”

Fails to address landlord concerns

The Scottish Association of Landlords (SAL) told Property118 the guidance fails to address landlord concerns.

SAL chief executive, John Blackwood, said: “While it is welcome that the Scottish government’s new guidance contains some consideration of the impact of rent controls on landlords, it fails to address our main concerns.

“Landlords across Scotland continue to consider reducing their portfolios or leaving the sector, taking their properties out of the market entirely.

“Scottish ministers should work with landlords and tenants to grow market confidence, bring more homes into the private rented sector, and ensure that it works for all.”