News
Rent Controls backfire - Propertymark speaks out
Tuesday 11th July 2023
Graham Norwood-LettingAgentToday
Propertymark has given details of how it believes the Scottish Government rent control system has backfired and works against the interests of the rental sector
The Scottish Parliament last month agreed to another six month extension to rent controls, taking them up to March 2024.
This means that most in-tenancy private rent increases would continue to be capped at 3.0 per cent and, alternatively, private landlords could apply for increases of up to 6.0 per cent to help cover specific increases in costs in a specified period where these costs can be evidenced.
Evictions will also be banned for a further six months for most tenants, except in several specified circumstances: increased damages for unlawful evictions of up to 36 months' worth of rent would continue to be applicable.
The Scottish Government housing minister - Green politician Patrick Harvie - says that over the period from 2018 to 2020, 63 per cent of social rented households and 40 per cent of private rented households did not have enough savings to cover even a month of income at the poverty line, compared to 24 per cent of households buying with a mortgage and nine per cent of households owning outright.
"Consequently, rented sector households entered the cost of living crisis in a more vulnerable position than owner-occupiers" he told the Scottish Parliament in a written statement.
However, Propertymark says this policy may have backfired, and in any case works against the interests of the rental sector.