A property leader has warned that Scotland's upcoming Housing Bill must not hamper much-needed investment in the rental sector.

Scottish Property Federation chair Stuart Oag says the group has lobbied hard to demonstrate why new rent control legislation must be done in a way which facilitates investment in new housing.

He told guests at the group’s annual dinner: “Unless we boost supply, we will remain trapped in a cycle of a lack of homes of all types and tenures. If we reduce supply, then we will exacerbate the structural deficiencies which currently exist, and which have led to the declaration of a housing emergency.”  

Rent control proposals have been a key concern of many in the industry, with evidence showing that Scotland is losing out to other parts of the UK on critical housing investment, including in the build-to-rent sector, according to the group.

Gove

At the event, which was also addressed by former Housing Secretary Michael Gove, Oag said the country needed more homes, more quickly.

“We need thriving offices, leisure and retail offerings,” he added. “We need more efficient logistics and manufacturing facilities to support economic growth. We need quality accommodation for our students to support our universities. And we must have the public infrastructure that will facilitate the development deemed necessary.”

The proposed Housing Bill would require local councils to carry out assessments on the condition of the PRS and make recommendations to ministers about imposing rent controls. Rent rises would also be capped during and between tenancies.

However, a recent study by RentBetter found that although rent stabilisation measures have had some positive impacts in the region as limits on in-tenancy rent raises have reduced rent increase levels for a minority of renters, advertised rents have continued to increase significantly.