Rent controls clash with Swinney's economic vision for Scotland

Acknowledging unprecedented budgetary constraints, the First Minister laid out ambitious goals for housing, economic growth and sustainability over the next year.

Read a transcript of the First Minister’s speech  →

Impact of house building will be weakened

The Programme emphasises substantial investments to address the housing crisis, with £600 million allocated to affordable housing and £40 million for measures to repurpose vacant properties, such as changes to compulsory purchase rules. In addition, 2,800 mid-market rent homes will be built with funding of £100 million.

Whilst Propertymark welcomes these commitments, we believe any positive effects will be undermined by the introduction of permanent rent controls. We have repeatedly raised concerns about the costs and unintended consequences of the Housing Bill, particularly its potential to reduce the availability of privately rented homes and increase expenses for renters due to restrictive regulations.

Research conducted in 2023 indicates that the spectre 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.

Accelerated planning and remediation

Local planning authorities are set to benefit from additional support to identify pipelines of land for new homes and monitor their delivery. This will be complemented by a new Planning Hub offering services to housing developments, in particular those on larger, legacy, or stalled sites.

The Scottish Government has also pledged to speed up progress on cladding by implementing the Housing (Cladding Remediation) (Scotland) Act, delivering assessment, risk mitigation and remediation measures in affected properties, and introducing legislation for a Scottish Building Safety Levy to raise funds for this effort.

Green energy and sustainable homes

Swinney stated that a Heat in Buildings Bill will be introduced to the Scottish Parliament and will include provisions to ban the use of fossil fuel heating systems and require certain properties to meet minimum energy efficiency standards. 

Propertymark responded to the consultation on the drafting of the Bill, highlighting the challenges faced by homeowners and landlords in improving their properties and advocating for reasonable time and support to be made available.

We are pleased that the Bill will also give Ministers powers to ensure that new rules are fair and proportionate for building owners and will engage with the Scottish Government to assist with development of the regulations.