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The Herald Scotland

Landlords must lose the fight over Scotland's rent controls

Last year, the government declared a national housing emergency, recognising record levels of homelessness, the toll high rents are taking on tenants, social housing waiting lists of nearly a quarter of a million across Scotland, and disrepair rampant across our housing stock. Yet as Professor Duncan Maclennan points out, the 'housing emergency' is a misnomer. Read More: This so-called emergency did not happen overnight; it has been created by design through the privatisation of our housing stock and unregulated growth of the private rented sector. Scotland's tenants have faced the hard end of these economic decisions for decades, and bold structural solutions are urgently needed in response. Tenants don't have time to wait. Rent controls, as outlined in the Housing Bill, are an important first step towards ending decades of housing misery. Robust, universal rent controls which have the ability to bring rents down could begin to transform our housing system by making private rented accommodation more affordable and disincentivizing exploitative landlordism overall. It's important to state that forms of rent control seen in recent temporary measures have included too many loopholes for landlords to exploit. Any exemptions to upcoming rent controls would create a multi-tier system, leaving thousands of tenants open to unregulated rents and undermining future policy efforts. The current consultation on rent controls has laid bare the Government's intention to appease landlords by introducing significant exemptions to rent controls. Ruth Gilbert, national campaign chair of Living Rent (Image: Newsquest) At this last hurdle rent controls are under threat. Since the government first committed to rent controls, the landlord and developer lobbies have eroded support for proper regulation of the private rented sector among politicians. The constant barrage of criticism - combined with empty threats of a mass exodus of landlords - have pushed a pliant government into conceding to appease the market at the expense of tenants. The most egregious exemption proposals concern 'build to rent' developments. The government has proposed a suite of amendments designed to encourage these sorts of developments, but this dangerous trend towards large-scale private developments is not something they should sensibly support. Build to rent properties are expensive, and beyond the reach of most tenants. Anyone who has walked through either Glasgow or Edinburgh recently will have seen these buildings springing up alongside billboards that promise convenient locations, fun perks, and luxury accommodation. Worryingly, this is just the start of the build to rent boom, over 3,800 units have been built, and there are 12,767 still in the pipeline. This explosion of the sector should highlight that it does not need any further government incentives. Indeed, across the UK the industry received over £1bn in investment from North America in the last quarter of 2024 alone. Developers' push for exemptions only highlights the business model they are touting. The bill, as introduced, already allows for above inflation rent increases, and so lobbyists' greedy demands for more exposes a model that is more concerned with creating dividends for overseas investors than delivering on the needs of Scotland's people. The government is deeply misguided if it thinks that expensive, luxury accommodation is going to fix our housing emergency. These are development sites which can and should be used for much-needed and genuinely affordable housing for social rent. Also proposed for exemption are mid-market properties. Mid-market tenants are some of the most vulnerable in our housing system. Apparently designated for tenants with low to middle incomes, mid-market properties exist to ensure that those unable to afford rents in the private sector and who cannot access social housing are able to better afford their housing costs. By threatening to exclude mid-market tenants from rent controls, this will see mid-market landlords able to increase rent however high they like with tenants left with no recourse to challenge it. For example, this summer at Water Row mid-market development in Govan, tenants were hit with a 10.6% rent increase after being given a rent increase of 39% before they had even moved in. The rent increase was delivered despite a previous commitment to keep rent below the local housing allowance. However, tenants had no legal recourse to challenge. It was only through Living Rent members organising together and fighting back did the landlord eventually concede and cancel the rent increase. This government needs to stop listening to the empty threats of landlords and legislate to protect those who have been most impacted by decades of mismanaged housing policy. Scotland's tenants need universal and comprehensive rent controls that bring rents down. Anything short of this will ruin the housing bill, undermine the possibility of a more just housing system for years to come, and damage the wavering trust that Scotland's tenants have that politicians will take the urgent action needed to end the national housing emergency. Ruth Gilbert is the national campaign chair of Living Rent