The Housing (Scotland) Bill has continued to progress through the Scottish parliament but invited criticism from experts from both sides of the landlord and tenant divide.
The bill is in stage two and would include measures such as rent control powers for Scottish ministers, restrictions around rent increases and delays around eviction orders.
In addition, this would also include changes for how damages in unlawful evictions are calculated.
Giving evidence was Dan Wilson Craw, deputy chief executive at Generation Rent, who praised the bill for potentially setting the standard for fair renting in the UK.
However, Dan questioned the fact that suggested rent controls would only apply to rent control zones - where local authorities find excessive rent inflation has been taking place.
Instead, arguing for a national rent cap, Dan pointed out two key risks with establishing rent control zones.
“First, it’s not clear how long it will take for councils and the Scottish Government to identify areas that are facing excessive rent inflation and then decide to bring in controls – though a consultation would need to take place over eight weeks,” Dan told parliament.
“If rents rise rapidly for several months before a rent control zone is designated, then these rises will get locked in.
“Second, it’s hard to predict how long a market upswing in rents will last – though Glasgow’s recent period of high rent inflation has begun to subside, after about two and a half years.
“There’s a chance a generous CPI+1 cap could allow landlords to raise rents at unaffordable rates for several years after the initial spike has subsided.”
Here, Dan flagged that previous attempts to introduce rent control zones had failed due to data issues.
“Ultimately it would be much more valuable for rents on every tenancy to be collected through the existing landlord registration system in Scotland,” he added.
“A successful system in Scotland could be a model for the rest of the UK. We’ll keep following it closely over the months ahead, working with MSPs in an attempt to strengthen the Bill as much as possible, so tenants across Scotland have access to secure and affordable homes.”
From a landlord perspective, Propertymark was invited to give evidence with head of policy and campaigns Timothy Douglas giving evidence.
Timothy warned that rent caps must remain flexible to accommodate inflation and the rising costs of energy efficiency improvements.
He also cautioned that restrictions on setting rents between tenancies could discourage investment, particularly in older properties that require significant capital expenditure to maintain quality standards.
Propertymark added, when summing up Timothy’s evidence, “In our reports we highlighted that landlords and investors require continuity and consistency to maintain their role in Scotland’s housing market.
“Douglas reiterated this point during the evidence session, stressing the need for legislation that creates a fair balance between tenant protection and landlord sustainability.
“Our campaigning for policies that address Scotland’s housing crisis comprehensively continues and we urge the Scottish Government to refocus on practical solutions that deliver more homes and better outcomes for tenants and landlords alike.”
