Landlords in Scotland should be made to routinely provide data rather than simply respond to requests from local authorities, according to a report into the Housing Bill by the Local Government, Housing and Planning Committee.

It believes there should also be a requirement for the Scottish government to report to Parliament once rent control areas have been established, and then publish annual reports on the PRS when a data collection system has been set up. It must provide as much detail and clarity as soon as possible, says the committee, in order to mitigate potential unintended consequences.

"There is strong evidence that investment in the build-to-rent sector has stalled whilst it remains unclear how rent controls will operate" - report.

Propertymark agrees that this is vital to ensure there’s evidence-based policymaking by decision makers. Head of policy and campaigns, Timothy Douglas, adds: “Rent control areas need to be clearly defined and easily understood, periodic assessment of rent conditions by local authorities must be consistent and rent control should be linked to the tenancy not the property.”

Negatively affected

The committee warns that the “delicate eco-system” of the PRS had already been negatively affected by uncertainty, including about how key parts of the Bill will operate in practice, particularly around rent controls.

It adds: “There is strong evidence that investment in the build-to-rent sector has stalled whilst it remains unclear how rent controls will operate. In the long-term this may be to the detriment of the supply of rental properties, exacerbating existing shortages.”

Although Housing Minister Paul McLennan (pictured) told the committee that his department was conducting extensive engagement with stakeholders, the report adds curtly: “It would have been much more helpful if this had taken place before introduction to enable firm policy decisions to be reached, avoiding the current levels of uncertainty which is being experienced by tenants, landlords and investors.”

The committee had heard that evidence of landlords leaving the sector was largely anecdotal due to the three-year time lag in landlord registrations, while the minister said the number was “probably decreasing and the number of properties in the sector is slightly increasing” as smaller landlords sold to larger landlords – which was disputed by landlord groups.

Read more abou the Scottish Housing Bill.