The ruling party in the Scottish Government is making another attempt to cap rents.
It has backed proposals for controls which would see private rents increase by no more than 6%. The Housing (Scotland) Bill is in its early stages and was the result of an earlier deal that took the Greens into power with the SNP – however, when the Greens were sacked by the SNP earlier this year, the rent control idea appeared to die.
However the SNP housing minister Paul McLennan has confirmed plans for a rent cap – and, as was the case some years ago, it’s being described as “a cost of living crisis measure.”
McLennan says: “The Bill includes a package of reforms which will help ensure people have a safe, secure, and affordable place to live. Eradicating child poverty remains this government’s priority and having a home can make a direct contribution to achieving this. This is why ensuring families can have secure and affordable homes that meet their needs is part of our approach to tackling the housing emergency.
“Setting out the form of the rent cap … allows for a reflection of the costs to landlords of offering a property for rent whilst offering protection for tenants in terms of limiting more significant rent increases.
“We are bringing forward a system of rent control that works for Scotland – a system that supports stabilisation of rents for tenants, whilst ensuring there can be a balanced approach that provides appropriate protection for the property rights of landlords and supports investment in the development of rented homes.”
In response Timothy Douglas, Head of Policy and Campaigns at letting agents’ body Propertymark, says: “Whilst the Minister is beginning to recognise that landlords and investors are vital to solving the housing crisis in Scotland, and inflation-linked rent increases will support investor appetite, further changes are still needed to strengthen the legislation and give more confidence to letting agents and their landlords.
“The Bill, in its current form does nothing to address the demand for private rented property and the proposals for rent control areas, in terms of date collection, designation and reporting timescales are inconsistent.
“Furthermore, rent control measures between tenancies removes any incentive for landlords to invest or upgrade properties and the Scottish Government must reduce the tax burden on landlords to bring down the cost of renting for tenants.”
This article is taken from Landlord Today