Scottish government unveils new plans for rent controls

The Scottish government has published its long-awaited housing legislation that aims to improve the lives of renters and reduce homelessness in Scotland - and will usher into law new rent controls.

That's despite several recent rent price indices highlighting that rents in Scotland are rising more quickly than anywhere else in the UK.

In addition, four local authorities in Scotland have now declared housing emergencies as landlords leave the sector and rented housing becomes scarce.

The Housing (Scotland) Bill will strengthen tenant rights, for example, tenants will be allowed to keep pets and decorate their rented homes.

Renters will also enjoy stronger protection against eviction.

There's also an 'ask and act' duty on social landlords and public bodies to identify those at risk of homelessness and take preventative measures.

The proposals have been met with a mixed reaction with the government insisting that its proposals will deliver a 'healthy rented sector'.

'A fairer, well-regulated rented sector'

Tenants' rights Minister Patrick Harvie said: "A fairer, well-regulated rented sector is good for both tenants and landlords. Tenants benefit from improved conditions and security, while good responsible landlords will thrive when their good practice is recognised by regulation.

"Scotland has led the way across the UK in improving the experience of people who rent their homes and this reform has been at the same time as significant growth in the size of the private rented sector.

"So, progressive reform can lead to better conditions and a healthy rented sector overall.

"I want to keep working with both tenants and landlords to achieve that goal."

'Proposals will do nothing to help either tenants or landlords'

However, the proposals have been condemned by John Blackwood, the chief executive of the Scottish Association of Landlords (SAL), who said: "Despite the hype and promises from the Scottish Government, it seems these proposals will do nothing to help either tenants or landlords in the private rented sector.

"The rent control proposals, as has been seen in places like Ireland which has similar measures, will see reduced investment and more landlords leaving the sector, leading to higher costs for tenants."

He added: "The effects of Scottish Government policies in the PRS are already being felt, with rising costs reducing supply and placing more pressure on council and housing association properties that they are struggling to cope with.

"As landlords have said for a number of years, what is needed is a coordinated plan to build more social housing, encourage more investment in private renting and the building of more owner-occupied homes.

"The approach outlined in this legislation will exacerbate Scotland's housing crisis and make it harder for people to have the quality home they deserve; in a place they want and at a price they can afford."

'Rent regulation in Scotland is here to stay'

The chief executive of Generation Rent, Ben Twomey, said: "Rent regulation in Scotland is here to stay and we welcome the Scottish Government's decision to introduce a permanent rent controls framework.

"Scotland continues to lead the UK in protecting tenants from unfair and unaffordable rent rises, and this Bill is evidence of what renter campaigns can achieve, with Living Rent deserving a lot of credit.

"The proposed system has the potential to improve the tenant experience in Scotland, but it needs to be designed well, so it can be implemented and enforced effectively.

"As it stands the local nature of the regulation could lead to tenants outside of rent control areas facing unaffordable rent increases."

He adds: "It will also take some time for the changes to come into force, with local assessments and consultations needed even after the Bill becomes law.

"In the meantime, tenants face rent increases of up to 12% even with the interim protections."

'Without evidence that they have ever worked'

David Alexander, the chief executive of letting agents DJ Alexander Scotland, said: "So, once again rent control areas are being proposed without evidence that they have ever worked anywhere in the world.

"The recent experience in Scotland of the rent cap introduced in October 2022 has resulted in unprecedented demand and rents rising at their fastest ever rate, and a housing sector that is in crisis with four local authorities having said they were experiencing a housing emergency."

He added: "The problem is this bill will be extremely difficult to implement in practice."

'Scottish government's continued quest for rent control'

Timothy Douglas, the head of policy and campaigns at Propertymark, said: "The Scottish government's continued quest for rent control and restrictions on rent increases are laid bare in the Housing (Scotland) Bill.

"The measures will do nothing but add extra burden on landlords and local authorities with no additional reward for tenants at a time when resources and finances are under extreme pressure."

He adds: "Fundamentally, though, the long-term aim for the Scottish government must be to re-balance supply and demand levels for private rented property.

"A review of all recent tax changes that impact private landlords is urgently needed and must form part of these reforms."

'Scotland wants permanent rent controls'

The managing director of Accommodation for Students, Simon Thompson, said: "It's hard to believe that in the face of some of the fastest rising rents in the UK, Scotland wants permanent rent controls.

"And if the government wanted to work with landlords, they would listen to what is being said - rent controls don't work and will push rents up."

He added: "There will be a lot of fed-up landlords wondering what they should do and when the details of the Bill become clear, we could see lots of landlords selling up.

"That would mean higher rents and fewer homes for tenants - which isn't what the government is intending, but it's what they will create."