Scottish Government commits to rent controls

Scottish Government commits to rent controls

0:07 AM, 6th September 2024, About 3 months ago 10

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The Scottish National Party’s Programme for Government is pledging to bring in permanent rent controls for Scotland’s private rented sector (PRS).

First Minister John Swinney said proposals to give local authorities the power to cap rent increases would remain part of the Housing (Scotland) Bill.

However, he is ignoring stark warnings from Propertymark and other PRS organisations.

Mr Swinney claimed the measures will give tenants certainty and encourage investment in the PRS.

‘Progressing our proposals for rent controls’

Mr Swinney said: “This year we will invest nearly £600 million in affordable housing, including an additional £40 million to bring existing homes into affordable use.

“There will be a strong focus on working with partners to enable existing accommodation that is not currently in use to be made available as swiftly as possible to meet the need for housing – ensuring we take every step we can to boost the availability of housing as quickly as we possibly can.

“We will provide a further £100 million to support the construction of around 2,800 mid-market rent homes.”

He added: “And in progressing our proposals for rent controls, we will introduce amendments at stage 2 of the Housing Bill to ensure that tenants have the protection they need, and that Scotland is able to attract more investment to supplement the investment we are making through the public finances.”

Positive effects will be undermined by rent controls

A spokesperson for Propertymark said: “Whilst Propertymark welcomes these commitments, we believe any positive effects will be undermined by the introduction of permanent rent controls.

“We have repeatedly raised concerns about the costs and unintended consequences of the Housing Bill, particularly its potential to reduce the availability of privately rented homes and increase expenses for renters due to restrictive regulations.

“Research conducted in 2023 indicates that the spectre of rent controls is already having a detrimental effect, particularly on tenants in the PRS.

“The average rent for a two-bedroom home in Scotland has surged by over 14% as landlords seek to cover costs and prepare for the new legislation.”

Mr Swinney also made pledges to reduce homelessness and bring in new rules for landlords and homeowners to meet energy efficiency targets.


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Cider Drinker

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8:42 AM, 6th September 2024, About 3 months ago

That’s clever. Introduce rent controls and force landlords to ‘improve’ the EPCs with expensive and often damaging insulation.

That may work on the Scottish Government's planet but I fail to see how it might work on mine.

Beaver

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9:58 AM, 6th September 2024, About 3 months ago

This is a bit of an odd one isn't it?

"First Minister John Swinney said proposals to give local authorities the power to cap rent increases would remain part of the Housing (Scotland) Bill....
Mr Swinney claimed the measures will give tenants certainty and encourage investment in the PRS."

So how will rent controls encourage investment in the PRS?

Beaver

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10:21 AM, 6th September 2024, About 3 months ago

Report here on the impact of rent controls in the private rented sector:

https://bpf.org.uk/media/6296/2023-03-the-impact-of-rent-control-on-the-private-rented-sector-bpf-final.pdf#:~:text=Rent%20control%20can%20reduce%20rental%20housing%20supply%20both,from%20entering%2F%20encouraging%20them%20to%20leave%20the%20sector.

On page 4 under the heading of "The main disadvantages and unintended consequences" the report states "Reduced supply. Rent control can reduce rental housing supply by deterring investors from entering/encouraging them to leave the sector."

Reluctant Landlord

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10:34 AM, 6th September 2024, About 3 months ago

A new fool taking over from the previous fool.
Clearly something more drastic is required.
Forget devolution, Scotland needs a revolution!

Beaver

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10:43 AM, 6th September 2024, About 3 months ago

The report also says "Reducing the profitability of any business inevitably impacts its attractiveness and a 2015 study asking landlords how they would respond to the introduction of rent stabilisation measures in London indicated that almost 60% would sell some of their properties as a result. Indeed, many countries, such as Sweden, the Netherlands and Germany, have abolished rent controls on new build housing in an attempt to reverse this trend."

Presumably these factors aren't thought to affect Planet SNP and unlike London, Sweden, the Netherlands and Germany on Planet SNP investors queue up to give their money away.

Beaver

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18:05 PM, 6th September 2024, About 3 months ago

It looks as though Plaid Cymru are saying similar things in Wales:

https://www.netrent.co.uk/2024/06/17/plaid-cymru-proposes-rent-controls-in-wales-sparking-controversy/#:~:text=According%20to%20Plaid%20Cymru%E2%80%99s%20manifesto%2C%20the%20introduction%20of,of%20their%20homes%20due%20to%20soaring%20rental%20prices.

But the Senedd so far has rejected calls for rent controls. A post from today in the telegraph claims that plans to target second home owners in Tenby has backfired:

https://www.telegraph.co.uk/money/tax/holiday-let-tax-backfires-wales-tourism-dries-up/#:~:text=Tourist%20hotspots%20in%20Wales%20are,treble%20in%20the%20past%20year.

Apparently this is damaging the local economy and locals can't afford to buy the houses anyway. In areas of the country that are heavily dependent upon tourism if the only available work is in bars, restaurants, hotels and coffee shops attacking the source of that income and work is likely to do some damage.

What a lot of parties don't seem to have got to grips with in their '...lets bash landlords with rent controls and second homeowners with extra tax...' is the answer to these questions.

How do you make it ATTRACTIVE for any landlord to house long-term tenants. How do you make it MORE ATTRACTIVE than furnished holiday lets. How would you make it ATTRACTIVE for landlords to buy up some of those houses coming onto the market in Wales and let them to long-term tenants.

Neil Robb

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17:35 PM, 7th September 2024, About 3 months ago

Surged 14% back fired.

Many of my rents in Scotland were under £500 . So less than £50 a month. 10% on a £500 a month rent that had not been raised in ten years.

Time for shelter generation rent acorn tenants union Scottish government to stop misleading the public.

Very misleading figures by the Scottish government.

Lomondhomes

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11:12 AM, 20th September 2024, About 3 months ago

I wonder why he doesn't campaign for tax and council tax controls?

Peter Merrick

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22:56 PM, 1st October 2024, About 2 months ago

Reply to the comment left by Beaver at 06/09/2024 - 09:58
It's so absurd that it must be deliberate word salad/gaslighting.

Peter Merrick

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23:01 PM, 1st October 2024, About 2 months ago

Reply to the comment left by Beaver at 06/09/2024 - 18:05
You miss the point. Landlords are evil and malicious and greedy good-for-nothings and a scourge on society and need to be driven out of town. Full stop. So on what planet would they want to make it attractive to be a landlord?

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