‘Arrogant' SNP introduces more rent controls
SNP ministers have been accused of 'arrogantly' ignoring the failure of their previous rent controls after unveiling plans for another cap on rises.
They tabled plans at Holyrood that would see rent increases in 'control areas' capped at 1 per cent above the CPI measure of inflation, up to a maximum of 6 per cent.
Under the amendments lodged to the Housing (Scotland) Bill, the cap would apply both to rent increases during the term of a tenancy and in-between tenancies.
Ministers would be tasked with determining which areas in Scotland should fall under control areas, with 12 of Scotland's local authorities having declared a housing emergency.
But industry data have disclosed that previous SNP controls backfired by pushing up average rent rises in Scotland, above the increases seen in England.
Experts said the controls curtailed investment in the private rented housing sector and led to landlords withdrawing their properties from the market. This exacerbated a shortage of rental properties for tenants.
It emerged last month that building work started last year on the lowest number of private houses since 2013, apart from during the pandemic.
Meghan Gallacher, the Scottish Tories' shadow housing secretary, said: 'Disconnected SNP ministers are arrogantly still refusing to accept that previous rent caps schemes ended up in disaster.
'The previous measures drove away much-needed investment in Scotland's housing sector and crippled tenants with soaring rent increases.
'SNP ministers' plans for permanent rent controls will do nothing to tackle Scotland's housing emergency which has occurred on their watch and left thousands of families languishing in temporary accommodation.'
John Blackwood, chief executive of the Scottish Association of Landlords, welcomed the amendments allowing property owners to increase rents.
But he said: 'Landlords are quite rightly extremely concerned about rent controls, and many have already sold up and exited the sector.
'Now, more than ever, the Scottish Government needs to work with private landlords to secure the future of private renting in Scotland and ensure people have homes to rent when and where they need them.'
The SNP introduced an emergency rent cap in October 2022. The policy was supposed to be a short-term measure to support tenants through the cost of living crisis.
However, the cap was extended and, while it ended last year, a temporary framework of rent controls is still in place while the SNP finalises the Bill, which aims to make them permanent.
Shirley-Anne Somerville, the Social Justice Secretary, said: 'Ensuring families can have secure and affordable homes that meet their needs is part of our approach to tackling the housing emergency.
'These measures will also help protect tenants against a backdrop of a continuing cost of living crisis and rising energy costs.
'We are doing what we can with the powers that we have as we know our policies are working to improve the lives of families in Scotland.'
She said the Scottish Government had been 'working closely with tenants' organisations' in the legislation, 'including a system of long-term rent controls that is fair for tenants and encourages investment in the sector'.
Aditi Jehangir, chairman of tenants' union Living Rent, said: 'The in-between tenancy protections suggested by the Government are crucial. They mean that landlords will stop evicting tenants to up the rent.
'However, the rent increase formula suggested locks in increases above inflation. The last decade has seen rents grow completely unaffordable. Any formula that increases rents above the rate of inflation will push already struggling tenants further into poverty.'
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