8:54 AM, 24th April 2025, About 3 weeks ago
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Scottish landlords are being urged to take part in a consultation on rent control exemptions.
The Scottish Association of Landlords (SAL) has welcomed the consultation on which properties should be exempt from rent controls having previously warned that rent caps will backfire.
The Scottish Conservatives call the consultation an admission that “rent controls don’t work” and warn the policy will reduce supply in the private rented sector.
Under the Scottish Housing Bill, the Scottish government has set out plans for long-term rent controls, which the Scottish government claim will create “a fairer and better regulated private rented sector.”
Paul McLennan, Scottish Minister for Housing, claims the Scottish government “is striking a balance between tenants and landlords” on rent controls.
He said: “Our approach to rent control is being tailored to Scotland’s needs, focusing on local circumstances and seeking to stabilise rents for tenants in areas where they are rising too steeply, while an appropriate balance is in place to protect the property rights of landlords.”
He adds the consultation will bring greater clarity to how rent controls will be implemented.
Mr McLennan adds: “There have been ongoing calls for further certainty on how rent control will be implemented and how rents will be capped in areas where rent control applies.
“To respond to this, we are bringing forward this consultation to seek views on how the powers within the Bill could be used to exempt certain types of properties from rent control and the circumstances where rents could be increased above the level of any introduced rent cap.”
The consultation considers that landlords could be allowed to increase rents above the rent cap. For example, where there have been improvements to their property or where rents have consistently been charged at a level below market rates.
Mr McLennan said: “We recognise that some stakeholders would prefer that exemptions from rent control and circumstances where landlords may be able to increase rents above the level of the rent cap were set out in primary legislation.
“However, it is essential that decisions in relation to this are informed by full and open consultation, allowing all of those who may be affected by rent control to have their views considered.”
Scottish Association of Landlords (SAL) chief executive, John Blackwood, welcomed the news and says rent controls could end up discouraging landlords from helping vulnerable tenants.
He said: “We welcome the government giving consideration to allowing an exemption when landlords have kept their rent significantly below market value.
“This is something SAL has campaigned for to ensure that such landlords are not disadvantaged and are not discouraged from offering discounted rents to tenants experiencing financial difficulty in the future. We encourage landlords to respond to the consultation and give their support to the proposed exemptions.”
Scottish Conservative Shadow Cabinet Secretary for Housing, Meghan Gallacher MSP, tells Property118 that instead of debating exemptions to rent controls, the policy should be scrapped altogether.
She tells Property118 : “This consultation is a tacit admission that the SNP’s rent controls don’t work.
“Instead of discussing potential exemptions, the Nationalists should accept they have got this badly wrong and ditch rent controls completely.
“Rather than helping tenants, rent controls do the opposite. Just as the industry and the Scottish Conservative warned when they were introduced by the SNP-Greens, rent controls have led to a reduction in available rental stock in Scotland and, in turn, higher bills for those tenants who can find a property.”
Previous articles by Property118 reveal rent controls do more harm than good.
According to the Institute of Economic Affairs (IEA), while rent controls may initially lower rents for existing tenants, they typically lead to higher rents in uncontrolled sectors and reduce housing supply and quality.
Even in Scotland, the rent cap has been blamed for soaring rents, which have increased by 11.6%.
Under the Scottish Housing Bill, local authorities would be required to assess local rents and recommend to MSPs whether rent controls should apply in their area.
However, in a move seen as a double standard, the consultation also proposes exempting build-to-rent (BTR) developers from rent controls.
The consultation says BTR providers are typically long-term investors and provide a steady supply of homes.
However, the consultation does admit that tenant groups may raise concerns if BTR properties are excluded from rent controls.
The consultation is also looking at whether mid-market rent homes, which tend to be households on low to moderate incomes, should also be exempt from rent controls.
Elsewhere in the consultation, the Scottish Government is considering changes to how joint tenancies in the private sector can be ended.
Under current rules in Scotland, one joint tenant cannot terminate a joint tenancy on behalf of all the joint tenants.
To end a tenancy in Scotland, all joint tenants must agree and sign a Notice to Leave, giving the landlord at least 28 days’ notice in writing.
However, the Scottish government argues this can leave individuals ‘trapped’ in a tenancy if the others do not agree to end it. Mr McLennan says the Scottish Housing Bill will fix this for tenants.
Mr McLennan said: “The Bill ensures that no joint tenant can be indefinitely held to a rental contract against their wishes, which will be particularly beneficial to joint tenants where domestic abuse is a factor.
“The new process will give other joint tenants time to consider their options, seek advice and support and where necessary find alternative accommodation.”
However, SAL argues the Scottish government’s proposed change could have unintended consequences for renters.
Mr Blackwood said: “On joint tenancies, while we recognise that the current situation can result in a tenant being trapped in a tenancy they no longer wish to be part of, we are concerned that the government’s proposed solution risks joint tenants being forced out of their home by a tenant who wishes to leave.”
Scottish landlords have until the 18th of July to take part in the consultation and can do so by clicking here.
