Scottish Government Proposes Ban on Rent Increases for Buy-to-Let Landlords

The Scottish government is considering imposing a ban on rent increases for buy-to-let landlords for up to five years, a move that has sparked concerns among industry leaders regarding potential negative impacts on the property market.

Proposed by Patrick Harvie, the Green MSP and tenants’ rights minister, and supported by housing minister Paul McLennan, the measures are part of the Housing (Scotland) Bill. The legislation aims to introduce long-term rent controls in Scotland to address rising rents, which have outpaced those in almost any other European country.

Under the proposed bill, local authorities would have the authority to request permission from Holyrood to designate rent control zones, where rent prices would be capped for a period of up to five years before undergoing review.

While the bill also includes provisions granting tenants rights to keep pets and decorate their homes, as well as offering stronger protection against eviction, industry leaders have expressed reservations about the potential impact on the property market.

David Melhuish, director of the Scottish Property Federation, expressed disappointment over the lack of clarity in the legislation, warning that it could deter investment in Build to Rent properties, exacerbating the housing crisis.

David Alexander, chief executive of DJ Alexander, criticized the proposal, citing the ineffective implementation of rent caps in the past and highlighting the potential adverse effects on tenants and the housing sector.

Timothy Douglas, head of policy and campaigns at Propertymark, echoed concerns about the additional burden on landlords and local authorities without providing tangible benefits to tenants, particularly during a period of financial strain.

Source: Property Industry Eye