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0:04 AM, 7th November 2023, About 6 months ago 37
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The SNP’s housing minister has refuted claims that the government’s rent cap policy is exacerbating Scotland’s housing crisis.
Paul McLennan denied claims the rent cap is driving up prices and reducing supply in Scotland.
Scottish ministers introduced a 3% cap on private sector tenancies in October last year to help with the cost-of-living crisis, and it is due to run until at least March 2024.
On BBC Scotland’s Sunday Show, Mr McLennan defended the government’s rent cap policy.
In a fiery exchange, the presenter said: “Your rental policy as well-intentioned as it might have been has cooked the market. People are bailing out and selling rental flats.
Mr McLenann interrupted and argued this was not the case.
He said: “No. If you actually look at the figures there are some key things. The rental costs in Edinburgh have seen a 13% increase in rental costs, very similar to Manchester, London and Cardiff.
“It is about supply and demand and this is where the concentration in Edinburgh and Glasgow has been. We need to look at how to bring more houses in these areas.”
The presenter of the programme hit back and asked the Housing Minister how the Scottish government would help people whose rents are doubling.
Mr McLeanan said: “As part of the Housing Bill we will look at longer-term rent controls.”
The presenter then questioned Mr McLennan again and asked: “Surely longer-term rent controls means landlords will just sell their flats if you make it unprofitable. The less properties to rent means the prices will go up.”
Mr McLennan disagreed and said: “It is about trying to get a balance and protect people in a cost-of-living crisis. I’ve been speaking to people in the private rented sector as it’s an important part of the housing market.
“We have got to make sure we are protecting people who are in private housing but make sure the private sector continues to thrive.”
Tory MSP Miles Briggs told The Herald newspaper: “Under the SNP-Green Government’s watch, Scotland’s housing crisis has spiralled to astronomical levels.
“In places such as Edinburgh, the situation is so bad that the council has been left with no choice but to declare a housing emergency as homelessness rates continue to soar.
He added: “The SNP’s hugely damaging rent control policy has been counter-productive. Paul McLennan’s defence of their rent cap will rightly anger individuals who are now facing huge obstacles and the prospect of becoming homeless.”
John Blackwood, chief executive of the Scottish Association of Landlords (SAL), told Property118 that rent controls in Scotland have made the housing crisis worse.
He said: “This is the Scottish government admitting that their policies have had no impact on rent levels in Scotland at all, compared with other parts of the UK. All these policies have achieved is to drive out investment in housing in Scotland, deepening and extending the housing crisis in this country.”
“With this admission of the failure of the policy to improve rents, the Scottish government must immediately change track and work with the whole housing sector to develop policies that will attract investment and improve availability of social, rented and owner-occupied homes.”
You can watch the encounter on BBC Scotland below:
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Mr.A
12:49 PM, 8th November 2023, About 6 months ago
Government are banking on Landlord’s not selling any or all of thier rental accommodation , even if a small amount sell up its going to make the housing situation untenable...
This experiment has never or will never work here or anywhere else in the world. FREE SCOTLAND.
Lomondhomes
13:00 PM, 8th November 2023, About 6 months ago
Reply to the comment left by Mr.A at 08/11/2023 - 12:48
Already sold 4.......I had to give notice to one tenant who had been with me for 18 years. The Government, encouraged by The Opposition, and sadly a number of charities (whose chairmen are paid a lot more than most landlords) are causing tenants a lot of misery. At least landlords can sell up when they are not wanted and take their money abroad where it is appreciated
Neil Robb
13:03 PM, 8th November 2023, About 6 months ago
Reply to the comment left by Lomondhomes at 08/11/2023 - 13:00
They want to restrict landlords selling unless to another landlord
Reluctant Landlord
13:10 PM, 8th November 2023, About 6 months ago
Reply to the comment left by Neil Robb at 08/11/2023 - 13:03
but what landlord is going to buy in the current climate???
There is a reason why the existing one is hot footing it out of the market....
I assume any sales in the main will go to first time buyers, cash buyers willing to let the property remain empty, sit back and watch the asset appreciate (because of lack of supply and it not getting any better!) , or those that want a holiday home for pure self use (not Air Bnb as they are anti that too!)
Monty Bodkin
13:36 PM, 8th November 2023, About 6 months ago
Reply to the comment left by Reluctant Landlord at 08/11/2023 - 13:10
"but what landlord is going to buy in the current climate???"
History repeats itself;
https://en.wikipedia.org/wiki/Peter_Rachman
According to his biographer, Shirley Green, Rachman moved the protected tenants into a smaller concentration of properties or bought them out to minimise the number of tenancies with statutory rent controls. Houses were also subdivided into a number of flats to increase the number of tenancies without rent controls. Rachman filled the properties with recent migrants
Dylan Morris
14:12 PM, 8th November 2023, About 6 months ago
Reply to the comment left by Reluctant Landlord at 08/11/2023 - 13:10
I agree it will be impossible to sell to another landlord as he in turn can only sell similar. And if rent controls apply to new the property probably won’t have sufficient income cover to get a mortgage. Also no mortgage lender will lend on a property where there is a restriction such as an agricultural tie etc. They certainly won’t want to lend where the mortgagee in possession can only sell to a landlord. I get the feeling this is all by design. As Klaus would say “ you will own nothing but be happy”
Derek Chekansky
9:52 AM, 11th November 2023, About 6 months ago
Sorry probably stated a thousand times. The audacity of politicians and government, what a nanny state. Curbing supply and demand because they have no solutions. Let me get this right.
1. The property is mine.belongs to me.
2. I have invested all of my savings in it for a future income (lets say an alternative to a pension)
3. Government tells me how much I can charge tenants and it could be less than inflationary increases.
4.Government admits it's a supply and demand market like car market, housing market etc.
Do they intend to curb all supply and demand markets?
How can this be legal? Again, it's mine, I have sweated blood and tears for years to have this property. Who protects my income ability to live in the future. Dictatorship due to lack of skills and ability to run a country.
john thompson
12:03 PM, 11th November 2023, About 6 months ago
3 Important things the majority of politicians lack..1 common sense. 2 the ability to look at the impact of policys historically. 3 the ability to forsee the long term impact of ill thought out policys, (assuming short they are not scraching around for cheap short term votes as usual, Lol.
Common sense would tell them that landlords have to make a profit or they leave the market causing rental property shortage, like they have done alread.
Many landlords don't increase the rent much at all for good long term tenants for fear of loosing them, they sooner take a lower profit. So as years roll by and you put in rent controls they are left with little manover to catch up with inflation on there already low rent and low profit, so they then put up rents every year to cover themselves!
Historically rent controls never worked anywhere, they reduced supply and create poor housing. Want to see the future...look to the past..simples!
The impact of rent controls are easy to forsee if you just put yourself in the shoes of the average landlord trying to eek out a small profit from an overregulated, over taxed sector, combine all that with high mortgage rates and the only way they can survive all the costs is to either sell up or put up prices for the customers i.e. the tenants, and they suffer the consequences of an ever dwindling supply and higher rents evey year.
A much better solution would be to halt mass immigration (they don't like talking or you thinking bout the HUGE strain on the housing market they create) build more houses, and ease the huge tax burdens on all business and employees.
But that would take common sense and some long term solutions. Absolutely no chance of the clowns in charge achiving that!
Mierran
15:35 PM, 11th November 2023, About 6 months ago
You currently can only sell a property in Scotland that is tenanted with the tenant in place. It seems it is impossible to evict to sell given current restrictions up to march 2024 that are likely to be extended. So many flats on the market with tenant in.
I have 1 flat I rent out. I can currently get more for my savings in a bank account than I get from the money I used to buy that flat. Unless the tenants leave looks like I would struggle to sell if I wanted to given current rules and would definitely sell at a loss. The rent is well below market so there's no way they'll leave as they couldn't get anywhere else for that money..Meanwhile I'm not sure what I'm meant to do if eg new kitchen needed.
It is just absolutely mad.
john thompson
17:10 PM, 11th November 2023, About 6 months ago
Reply to the comment left by Derek Chekansky at 11/11/2023 - 09:52
Spot on...I am so fed up with politicans sticking theire noses into every part of my life, restricting my choices, rights, freedoms and free speech.
And what happend to an English man home is his castle! What a joke.
It won't be long before the police are bashing down my own front door and forcing me to have an smart meter installed that I don't want! Along with thousands in fines and a possible prison sentence. All thanks to the Conservatives Energy Bill that practically no MPs opposed, Unbelievable!
Like you i worked bloody hard and spent a fortune to supply a good home for tenant's with the hope of making some decent profit for my efforts and something in the future towards my lame state state pension.
That has been devistated with huge unfair tax grabs, they tax of us all of us to oblivion, stiflling small businesses and anyone with ambitions, and on top of that ludicrous never ending expensive reforms.
They need to let the market and people alone insted of opressive detrimental meddling in everything they don't understand. Each time they meddle they make things worse for everyone involved.
Seems these days it doesn't pay to try to get on in life or work hard, you just end up being a bloody government slave. You get more respect and handouts being a layabout or an illegal imgrant.
This so called Conservative party is the worst in history by far, absolute bunch of clowns!