The Committee recommend that once a data collection system has been established for rents the Scottish Government should also ensure that it publishes annual reports on the private rental sector. Propertymark has long felt this is vital to ensure we have evidence-based policy-making by decision-makers.
It is also pleasing that the report acknowledges that to move beyond the housing emergency there must be an increase in the supply of affordable private rental properties across Scotland and a greater equity in the relationship between tenants and landlords.
The absence of long-term certainty has significantly undermined the effectiveness of the private rental sector, and the Housing (Scotland) Bill must provide long-term certainty.
Additionally, the Committee, like Propertymark, has ongoing concerns about the Bill and thinks there is a need for more clarity. However, despite this, MSPs on the Committee support the general principles of the Bill but will scrutinise the Scottish Government’s revised approach to rent control measures ahead of Stage 2 proceedings.
This means that following the recently proposed amendment from the Housing Minister, the Committee will hold additional evidence sessions with witnesses about the Scottish Government's intention to cap rent increases to CPI +1% before beginning consideration of amendments at Stage 2.
Continued Propertymark lobbying
Policy work leading up to the legislation through the New Deal for Tenants talked about affordable rents, supply of rented homes and quality raising standards. The Housing (Scotland) Bill does very little to increase the supply of privately rented homes, and only offers rent control as the solution for affordability—rent controls should be the last resort not the first port of call for policymakers. We have continually urged the Scottish Government to better understand the PRS and review costs and taxes impacting private landlords.
Housing (Scotland) Bill assessment sees no change to the plans
The Local Government and Housing Directorate, led by Minister for Housing Paul McLennan MSP, assessed the Bill and decided that no substantial amendments would be introduced, which is disappointing.
Propertymark is meeting MSPs and stakeholders in November 2024 to lobby for further changes to strengthen the Bill ahead of a debate in Parliament. Our Policy Team would like to hear from you to help form part of our ongoing conversations, email your views to [email protected].
We are pleased that the Committee has listened and recommended that further clarity is needed because, as we have long said, continued uncertainty impacts investment within the sector and will continue to reduce choice and drive up the cost of renting. It is also good to see the Committee recommend the Scottish Government should ensure that it publishes annual reports on the private rental sector. We have long felt this is vital to ensure we have evidence-based policy-making by decision-makers.
There is still more to be done to strengthen the legislation and bring certainty for landlords, tenants, and letting agents. Rent control areas need to be clearly defined and easily understood, periodic assessment of rent conditions by local authorities must be consistent and rent control should be linked to the tenancy, not the property. As also acknowledged by the Committee, data collection on rents must be coordinated nationally, and we should amend Rent Increases Notices, so they include a way of collecting data on reasons for rent increases.
Housing (Scotland) Bill
The Housing (Scotland) Bill was introduced on 26 March 2024 and sets out plans to make changes to the law covering rent controls, tenants’ rights to keep pets and decorate their homes, and a mechanism to delay evictions under certain circumstances.
