Landlord groups are hoping Scotland’s First Minister has softened his hard-line stance on impending rent controls amid promises to boost the PRS.
During his speech to the Scottish parliament introducing his Programme for Governent, John Swinney said changes would be made to upcoming legislation.
He told MSPs: “In progressing our proposals for rent controls, we will introduce amendments at stage two of the Housing Bill to ensure that tenants have the protection they need, and that Scotland is able to attract more investment to supplement the investment we are making through the public finances.”
The government has discussed introducing longer-term rent controls in the Bill – a move that groups such as Scottish Association of Landlords (SAL) have warned against, pointing out the unintended consequences and how investors are leaving the sector.
SAL chief executive, John Blackwood (pictured), tells LandlordZONE he still has reservations about rent controls, but looks forward to seeing the Bill’s amendments.
“The Housing Minister has gone on record as wanting to reset the relationship between government and the private rented sector, a goal we share,” says Blackwood. “The private rented sector will be key in solving Scotland’s housing crisis and we, as an industry, are keen to work with government to that end.”
Swinney announced plans to invest nearly £600 million in affordable housing, including an additional £40 million to bring existing homes into affordable use, plus a further £100 million to support the construction of 2,800 mid-market rent homes.
David Melhuish, director of the Scottish Property Federation, believes that without investment it will not be able to address the acute shortage of new private rental homes in Scotland.
“The opportunity is still there to secure over £3bn of new funding for rental homes in Scotland and it is vital that the Scottish Parliament seizes this chance to amend the Housing Bill,” he adds.
“There is no time to lose if we are to boost Scotland’s housing supply and gain the wider economic benefits this will bring.”
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