Tenant groups and trade unions push for rent controls in Scotland

Tenant groups and trade unions push for rent controls in Scotland

0:02 AM, 4th September 2024, About 2 months ago 6

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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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Cider Drinker

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18:40 PM, 4th September 2024, About 2 months ago

Introducing rent controls will not help with the housing crisis. How could it? Please, enlighten me.

It would, more likely, reduce investment in new housing and ensure that current rental stock falls into disrepair.

We need a people’s champion such as Martin Lewis to chair proper conversations (Question Time-style) to discuss how these crackpot ideas might work (or not work) and the likely unintended consequences.

The UK’s housing problems are all down to migration. People are dying in the Channel because the woke brigade is making the U.K. attractive to economic migrants. They have blood on their hands just as much as the people smugglers.

Desert Rat

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2:04 AM, 5th September 2024, About 2 months ago

Cider Drinker, I totally agree that introducing rent controls will not help with the housing crisis. Apparently every government that has tried it has made it worse.
I normally don't increase rents during a tenancy, but have for the first time in 30 years have started doing it this year.

If rent controls come in, I'll do it every year to the max allowed.

I've always gone above and beyond with repairs.

I don't think that Illegal immigration is pushing up rents.

It's the continued attack on PRS landlords by the government that has caused this problem.

More landlords are forced to sell, less houses are available to rent, prices increase.

Same as buying a ticket for a flight or concert. High demand, prices go up. No demand, prices go down.

For me personally, i've never seen so much demand for houses and so many landlords leaving the business as I've seen in the last 12 months.

I've always thought that I was in it for the long term and could weather the storm as we have a few houses.

Now with Labour in charge i'm thinking of selling a few houses where tenants are in arrears or that the house will never reach an EPC C without spending 2-3 years rental income on it. (construction type would require external insulation)

Probably better to sell sooner than wait for the penny to drop and more landlords get on the selling train.

Paddy O'Dawes

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9:55 AM, 5th September 2024, About 2 months ago

It's about time someone looked into Unions. I'm not anti representation but all of the old individual trade unions are getting swallowed by unite. Feels like a monopoly to me, it wouldn't be allowed in businesses so we should be back with relevant TUs not one massive entity

Fed Up Landlord

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17:40 PM, 5th September 2024, About 2 months ago

Good old commie rent controls. Yep, that'll sort it. Oh all the landlords are leaving and there's no investment? Great idea. Build a few gulags for pensioners and throw about a few five year plans as well and the marxist dream is fulfilled.

PAUL BARTLETT

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20:56 PM, 5th September 2024, About 2 months ago

"our market-driven housing system is the main driver of both poverty and wealth.”

Poverty, yes, and wealth, not for a long time.

All of this was done by political interference in the market. Well meaning, or not, but harmful all the same.

Time to hold activists and their ideas up to proper scrutiny literally let's see your numbers.Run a simulation with all the players to see what happens...

Paddy O'Dawes

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10:34 AM, 6th September 2024, About 2 months ago

Reply to the comment left by PAUL BARTLETT at 05/09/2024 - 20:56
You need to stop talking sense. If all of the relevant pressure groups ran a proper 10year forecast and plugged in the assumed inflation, benefit and wage figures you would be able to project potential problems years ahead and plan accordingly the level of support. However dealing with incremental problems doesn't produce headlines and surges in revenue etc. Couple that with a society that likes to run on outrage and being "considerably more ethical than you" I doubt there is the will to start

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