Tenant groups and trade unions push for rent controls in Scotland

Tenant activist groups and trade unions are demanding the Scottish government take action to end the housing crisis by introducing rent controls.

Groups such as Living Rent and ASLEF General Secretary Mick Whelan, have written to First Minister John Swinney, claiming “rent controls improve the quality of housing stock”.

This is despite a report from the Institute of Economic Affairs (IEA) warning that while rent controls might initially lower rents for existing tenants, they often lead to higher rents in uncontrolled sectors and a decline in housing supply and quality.

Rent controls have unintended consequences

Eight local authorities and the Scottish government have declared a housing emergency.

Tenant activist groups and trade unions warn without action the housing emergency will only get worse in Scotland.

The letter said: “More and more of our members are struggling to make ends meet –  this must end and you have the power to act. If your government is serious about ending the housing emergency and child poverty, robust and meaningful rent controls must be part of the solution.

“International evidence shows that well-designed rent controls have the potential to decrease inequality, to support private tenants’ security of tenure, and to improve the quality of housing stock overall.”

Evidence suggests that rent controls may have unintended consequences. The Scottish government’s own economic agency has warned that long-term rent controls proposed in the Scottish Housing Bill could create uncertainty and drive landlords to leave the market.

Rents have doubled in last ten years

The open letter to Mr Swinney and Housing Minister Paul McLennan also claims that “unaffordable rent costs are a major driver of poverty in Scotland”.

The letter says: “Rents have doubled in the last ten years for most private tenants while wages have stagnated. This has dramatic impacts on the most vulnerable, with nearly ten thousand children in temporary accommodation as of September 2023.

“We know that rent increases disproportionately affect women, young people, people of colour, single parents, disabled people and migrants.

“We also know that unaffordable rents are a major driver of poverty. Housing costs are the largest financial outgoing in most households, and while low pay is the main cause of escalating poverty rates, our market-driven housing system is the main driver of both poverty and wealth.”

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