Industry leaders warn Scottish Housing Bill could have severe consequences

A new lobbying group of industry leaders has warned that the Scottish Housing Bill will create uncertainty and hamper investment.

The More Homes More Quickly Group, representing private rented housing providers across Scotland, told the Herald newspaper that some aspects of the Bill could face a “potential legal challenge.”

The Scottish Housing Bill aims to introduce rent controls and strengthen tenant rights.

Rent controls won’t fix housing crisis

The More Homes More Quickly Group, featuring key figures like John Blackwood from the Scottish Landlords Association and Timothy Douglas from Propertymark, told the Herald they have sent a letter to the Scottish Housing Minister Paul McLennan.

The group argues that rent controls won’t fix the housing crisis.

The group writes in the letter: “The current approach to rent control in the Bill aims to build flexibility into the framework to avoid material unintended outcomes.

“However, it is crucial to recognise that reducing the supply and quality of private rented stock and potential spillover effects to non-controlled areas (for example, higher market rents) must be minimised.”

No concrete proposals for mitigating risk

The group pointed to a RentBetter study that “suggests that reduced supply and access to the private rented sector could significantly impact lower-income and other demand groups in housing need.”

The group adds: “This evidence, however, seems inadequately addressed in the Fairer Scotland Duty assessment and could carry with it legal implications.

“The main issue with the Scottish government’s assessment is that it identifies reducing supply as a risk but provides no concrete proposals for mitigating this risk.

“Instead, it offers vague assurances that the rules will be localised and there will be unspecified exemptions. These unspecified measures are inadequate for making informed investment decisions.

“Investors require clear, actionable policies to gauge the viability of their investments in the rental market.”

Workable approaches to rent control

The group suggests alternative “workable” options instead of rent controls which could help the Scottish property market.

The group said: “We need to ensure that this current legislation does not exacerbate an already increasing problem, and in this respect there are potentially workable approaches to rent control such as annual inflation-linked uplifts, subject to a reasonable cap, to endure for an overall maximum duration.”

Housing bill includes a package of important reforms

Mr McLennan told The Herald the Scottish government is committed to helping tenants and landlords.

He said: “A fairer, well-managed private rented sector is in the interest of both tenants and responsible landlords.

“We continue to engage with stakeholders on rent controls as the legislation goes through the parliamentary process.

“Our Housing Bill includes a package of important reforms to the rented sector, and we will continue to work with tenants, landlords and investors to ensure the measures in the Bill will support our vision for improving the supply and affordability of high-quality rented housing in Scotland.”

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