Scottish Government ‘remains committed’ to rent controls

The Scottish Government will cap rent rises in the private sector at a maximum of six per cent.

Housing minister Paul McLennan confirmed he will bring forward an amendment to the Housing Bill providing more detail on the cap.

The bill empowers ministers to designate rent control zones, within which landlords will be prohibited from raising rents significantly.

McLennan said rent rises in control zones will be capped at the rate of inflation plus one per cent, to a maximum of six per cent.

It will apply to rent increases both during the term of a tenancy and in between tenancies.

Rent control measures have been the subject of much debate in recent months, with advocates arguing they protect tenants from rent rises beyond their means. However, opponents have argued rent controls have a negative impact on the supply of housing.

The Housing Bill was introduced by the government earlier this year, but there was little detail on the application of rent control areas.

McLennan said the government “remained committed” to their implementation and the amendment would offer some clarity to tenants and landlords.

There will be some exemptions for certain properties within a rent control zone that would not be subject to controls and the minister confirmed a consultation on exemption powers will be brought forward next spring.

The Scottish Conservatives – who oppose rent controls – said the statement would do nothing to improve confidence among landlords and developers to address the housing shortage.

Meghan Gallacher, the housing spokesperson, said: “This announcement today will only cause further worry to an already unsteady housing sector.”

But the Scottish Greens have accused the government of a "shameful betrayal of tenants" by allowing above inflation rent rises.

The bill was initially introduced by Patrick Harvie when he was a minister. 

Maggie Chapman said: "Stabilising rents at unaffordable levels is no use to anyone, apart from profiteering landlords. If the SNP goes ahead with these disastrous plans they will be selling-out renters and entrenching a broken and unfair system."

The government previously put in place a rent cap of three per cent, active between October 2022 until March this year, in a bid to help tenants during the worst of the cost-of-living crisis.

But since that came to an end, tenants have reported significant increases to their rents – with the average rent increase contested through Rent Service Scotland at 20 per cent.

Labour’s housing spokesperson Mark Griffin welcomed the extra detail on the rent cap but added it only “plugged one gap in a framework bill”.

He called on the entire bill to be redrafted to better tackle the housing emergency, arguing it was “lacking in fundamental details” and would do nothing to promote housebuilding.