SNP to press ahead with controversial rent controls despite 'shameful betrayal' claim

SNP ministers will press ahead with controversial rent control measures but have been criticised for allowing above-inflation rises for tenants after insisting there must be “appropriate protection for the property rights of landlords”.

The Scottish Government had proposed permanent rent control measures in its housing bill. Temporary measures had been brought forward from the pandemic in partnership with the Scottish Greens.

The SNP Government is set to press ahead with rent control plans Pic: Ian Georgeson

A 3 per cent rent cap ended in March and as a temporary measure, if market rent is 6 per cent or less above the current rent, landlords can increase the rent in line with market rent. If the gap is more than 6 per cent, the rent can be increased in line with a formula up to a maximum of 12 per cent of the existing rent.

After lobbying from landlords, speculation had ramped up that SNP ministers could walk away or water down the measure after John Swinney’s programme for government pledged to amend legislation to “clearly set out how rent increases will be capped in areas where rent controls apply”.

Read more: How one Scottish landlord tried to raise rents by almost 200 per cent amid huge 'cliff edge' increases

Now, SNP housing minister, Paul McLennan has confirmed the rent controls will proceed - but they will be capped at 1 per cent above the rate of inflation, up to a maximum of 6 per cent.

He said: “There is a consistent view that Scotland needs a thriving private rented sector - one that offers good quality, affordable housing options and values the benefit that investment in rented property delivers. This announcement provides certainty for tenants and continues to encourage investment.

SNP Housing Minister Paul McLennan (Photo by Jeff J Mitchell/Getty Images)

“Setting out the form of the rent cap in this way – with CPI as the basis – allows for a reflection of the costs to landlords of offering a property for rent whilst offering protection for tenants in terms of limiting more significant rent increases.

“We are bringing forward a system of rent control that works for Scotland – a system that supports stabilisation of rents for tenants, whilst ensuring there can be a balanced approach that provides appropriate protection for the property rights of landlords and supports investment in the development of rented homes.”

Read more: Why SNP rent control plans would add £5.5m 'burden' amid savage cuts and halt house building

But the Scottish Conservatives have criticised the Scottish Government proceeding with the rent controls.

Tory housing spokesperson, Meghan Gallacher said the housing bill “does nothing to address the housing shortage or reassure housing developers and landlords that this government understands the issue at hand”.

Meghan Gallacher, Scottish Conservative housing spokesperson. (Image: Lisa Ferguson/National World)

She added: “The minister has already taken a sledgehammer to the rental market. This announcement today will only cause further worry to an already-unsteady housing sector.

“As this government is hellbent on being anti-house-building, developers have axed plans to deliver hundreds of more houses since the introduction of the SNP rent cap legislation.”

The Scottish Greens have been left furious by the ability for landlords to hike rents by a rate higher than inflation, with Maggie Chapman branding it a “shameful betrayal of tenants” and claiming the SNP was “shedding its progressive credentials”.

Green MSP Maggie Chapman. Picture: John Devlin

She added: “Stabilising rents at unaffordable levels is no use to anyone, apart from profiteering landlords. If the SNP goes ahead with these disastrous plans they will be selling out renters and entrenching a broken and unfair system.  

“These proposals do not tackle unaffordability and would not give tenants in the private rented sector the security or stability they’ve been promised.”