THE Scottish Government has announced its plans for housing reform, promising the introduction of a Housing Bill aimed at long-term rent controls, new tenant rights, and homelessness prevention.
Nathan Emerson, CEO of Propertymark commented:
“The Scottish Government’s plans to introduce Council tax premiums on second homes and permanently introduce rent controls will be detrimental to the future of the private rented sector in Scotland. Landlords are already struck with increases to their costs, and a further hike to taxes for second homes will act as yet another barrier to prospective and growing portfolio landlords.
“Rents have risen due to the lack of growth in the sector and by raising costs for landlords, so by introducing further disincentives for investment, the issue is set to worsen and fewer homes will be available for those tenants that desperately need housing.
“The last time rent controls existed in this country, the PRS shrunk to the lowest levels ever recorded and at a time where demand for PRS homes massively outstrips supply, rent controls will cause the sector to shrink to unprecedented levels. The Scottish Government is failing to learn the lesson of history and desperately needs to reevaluate its approach before it’s too little too late.”
