Preventing landlords from raising rents in between tenancies is an idea - like rent controls - that simply “could not survive contact with reality”, says Scotland’s landlord body.

The country’s Housing Bill has recently been amended to allow landlords to increase rents above inflation plus 1% in control areas, however, it means they would be prevented from bringing the rent back up to a market rate at the end of a tenancy if they’ve been keeping rents low to support existing tenants.

John Blackwood (main image), chief executive of the Scottish Association of Landlords, tells LandlordZONE that many of its members have held rents artificially low to help their tenants cope with the cost of living and other difficult life circumstances. “An undeniably good thing to do”, he says.

Market levels

“Under these proposals, those landlords would be prohibited from returning their rents to market levels should their tenants move on,” adds Blackwood. “This is a patently absurd set of circumstances that would discourage investment, reduce the supply of available homes, and drive prices upwards.

“SAL is committed to working with government and other stakeholders to play a productive role in addressing the housing crisis, but we cannot do it with one hand tied behind our back, which this measure would effectively do.”

The FT reports that investors have criticised controls for eroding the nation’s reputation as a place to deploy capital and prompted landlords to remove properties from the market, further constraining supply.

The 2022 freeze on rents had “the most draconian impact” on the delivery of homes in Scotland, according to Ken Ross, a developer of mid-market rental homes.

“Incorporating rental growth into the Housing Bill is good news, we have got more clarity going forward,” he says. “But investors need to see this in legislation and be assured that it will be supported by parliament to re-establish trust in the marketplace.”