There is still widespread frustration and bewilderment among landlords and agent that rent controls are the only policy intervention to help tackle affordability in Scotland, the Scottish Parliament’s local government, housing and planning committee has been told.

Timothy Douglas (main image), Propertymark’s head of policy and campaigns, said restraints on setting rents between tenancies could thwart investment, especially in older properties that need substantial investment - and landlords may not be able to meet these costs.  

Removing

It comes as a new survey from Scottish Association of Landlords finds that more than half (53%) of Scotland’s landlords are considering removing properties from the market, with an overwhelming 79% blaming hostility from government and politicians.

The Housing (Scotland) Bill will require councils to study rent levels in their areas at least once every five years and grant powers to Scottish Ministers to implement rent controls and issue limits on rent increases.  

During the committee session, it was confirmed that caps would increase via the Consumer Price Index plus 1% (up to a maximum of 6%), something that Propertymark’s Douglas believes provides clarity and allows for a more consistent approach as it allows landlords to plan with more certainty.  

However, he told MSPs that a pilot programme was needed before introducing a ‘one size fits all’ policy that failed to take into account the different levels of regional affordability, along with a review into all costs and taxes impacting private landlords, and an annual parliamentary update on the PRS.

Open market

Scottish lettings site Citylets’ latest quarterly report found that the country’s market had operated broadly to seasonal norms not seen since pre-Covid, while rents on the open market had recently slowed and were falling in major conurbations including Edinburgh and Glasgow.

It adds: “With the ‘Hotel of Mum and Dad’ at record occupancy levels, the issue of alternative tenures must be responsibly addressed as part of the impact analysis of the current Bill. Where are would-be tenants from the PRS supposed to go if they cannot find a private sector property?”