The Scottish Parliament has proposed a plan to ease the rent cap and eviction ban that was introduced under the Cost of Living (Tenant Protection) (Scotland) Act 2022 and will expire on 31 March.
The plan aims to protect tenants from excessive rent hikes and evictions, while allowing landlords to adjust their rents to the market rate.
However, Propertymark, the professional body for letting and estate agents, has expressed concerns about the lack of detail and guidance on how the plan will work in practice.
A spokesperson from Propertymark said: "We recognise the need to prevent rents from reaching a level that will cause hardship to some tenants, but the Scottish Government must provide more detail about how the transition measures will be applied."
How Rent Service Scotland determines market rents
The organisation is calling for more clarification on how Rent Service Scotland, the body that determines market rents, will operate and what data it will use.
The spokesperson said: "We need reassurance that there will be enough rent officers to support the new process and ensure that it is efficient.
"We also want to know how Rent Service Scotland performed before the emergency measures and how many cases were resolved by the First Tier Tribunal."
Propertymark argues that a one-size-fits-all approach would not reflect the diversity of Scotland's rental market conditions.
It also suggests that a taper should only be applied to rent rises when the gap between the current and market rent is above a certain threshold.
Valid reasons for making large rent increases
The spokesperson also pointed out that there will be agents and landlords with valid reasons for asking for a large rent rise.
These include having not increased rents for a long time before the rent cap was brought in, facing a big rise in mortgage rates, building costs and compliance requirements.
Self-managing landlords may struggle
Propertymark is also warning that the proposals are complex and that self-managing landlords may struggle to understand or comply with the new rules.
It is advising landlords in Scotland who are unsure about how to navigate the changes, to use the Scottish Letting Agent Register to find a reputable agent who can support them.
They also urge the Scottish Government to provide a calculator to help landlords and property agents set rent in line with the transition measures.
Supply and demand in the private rented property
The spokesperson stressed that the long-term goal for the Scottish Government should be to balance the supply and demand in the private rented property.
They added that with high demand there will need to be more homes to rent, and this would reduce the level of rent rises in Scotland.
That would mean the government incentivising new landlords and supporting investors.
Propertymark is also calling for a review of tax changes brought in by the UK and Scottish governments that have affected landlords.
The organisation also says that the increases in the Additional Dwelling Supplement rates have discouraged investment in Scotland's PRS, and should be removed or reduced.
'Rents would rise in Scotland'
The managing director of Accommodation for Students, Simon Thompson, said: "Critics have said from the beginning that rents would rise in Scotland when the rent cap finished.
"And here is a transition plan that doesn't really make things clear and there's a possibility that landlords in Scotland might make a mistake and be punished for it."
He added: "New rents in Scotland have already risen a lot as landlords try to keep up with the market with a new tenancy.
"But there is a danger that rents will rocket now because of landlord costs going up - and that's not good for tenants in Scotland or the rented sector."
