Parliamentary engagement
Two committees in the Scottish Parliament – the Social Justice and Social Security Committee and the Local Government, Housing and Planning Committee – are currently scrutinising the Bill.
Propertymark gave evidence to the Local Government, Housing, and Planning Committee in June and met Scottish Government officials to push for amendments to the Bill.
The Housing Minister, Paul McLennan MSP, will provide evidence to the Committee in September 2024. The Stage 1 proceedings are expected to conclude by the end of November 2024. This indicates that Stage 2 of the Bill will likely commence in early 2025, and the legislation could be completed in Summer 2025.
Ongoing lobbying |
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Many of the Bill's provisions require additional consultation and regulations. We will advocate for further policy development and engagement from Scottish Government officials.|
Our work is a collective effort, and we continue to collaborate with organisations and partners across the sector. We co-signed a letter to Kenneth Gibson MSP, Convener of the Finance and Public Administration Committee on the back of the Housing Minister’s response to the Financial Memorandum for the Housing (Scotland) Bill. The letter raises concerns about the costs and unintended consequences of the legislation, particularly its potential to reduce the availability of privately rented homes and increase expenses for renters due to restrictive regulations. Unfortunately, the Minister’s letter to the Committee misrepresents the evidence organisations listed have provided and, therefore, fails to take our legitimate concerns seriously. As we have consistently said, the Bill does nothing to address the fundamental point of demand, and we are concerned that the proposed rent control regime is the only option to help with affordability for renters. |
Harming the PRS: rent controls and rent capping
Propertymark believes that the success of the private rented sector across the UK can be largely attributed to the flexibility of tenancies and the market-driven nature of rent prices. The government should not discourage landlords from providing rental housing and should ensure they have the financial means to invest in and improve property standards.
Increasing the supply of properties, rather than capping rents, will ensure rents fall and landlords stay in the market. The private rented sector is not just a part of the housing picture, it is a vital component, and our member agents continually deliver safe and secure housing for millions of people.
In addition to the previously mentioned research by SPC and Rettie, Research conducted in 2023 indicates that right now, the proposal of rent controls is already having a detrimental effect, particularly on tenants in the PRS. The average rent for a two-bedroom home in Scotland has surged by over 14% as landlords seek to cover costs and prepare for the new legislation.
The need for more rental properties
We surveyed member agents in January 2024 to find out if they had noticed a rise in the average number of landlords selling properties or leaving the market completely over the last three years. Nearly two-thirds of agents (59%) said they had observed a significant increase.
On the ground, Research by the Scottish Property Federation and Rettie has shown that £3 billion of investment from the build-to-rent (BTR) sector has stalled, frustrating the delivery of over 17,000 new homes. This is a direct result of this legislation.
While we recognise the Scottish Government’s policy is to ensure a fairer private rented sector, it is disappointing and somewhat surprising to see that the sector’s overwhelming criticism of rent controls has been ignored, especially considering the substantial engagement Propertymark and the wider sector has had with MSP and Scottish government officials.
At a time when the PRS faces considerable pressures, and Scotland faces rising homelessness levels, the Scottish Government must listen to the sector to prevent a further reduction in the availability of private rented homes for tenants.
