Greycoat Real Estate releases its views regarding the controversial on-going resolution of the Scottish parliament in relation to rent controls in Scotland. The Housing Bill for Scotland was launched by Green MSP Patrick Harvie and Housing Minister Paul McLennan. It will impose the first long-term rent controls.
These controls will keep up with tenants’ rapidly rising bills. Local authorities may ask for areas to become rent control zones, meaning that if successful it could remain unchanged for several years before review. According to Greycoat, the bill also tries to put tenants in many friendly positions, able as they will be under its terms to have pets and decorate their homes.
In addition, the law makes evictions tougher, as Harvie from Greycoat points out. So, a regulated rental market directly benefits tenants by improving conditions and security. It also helps good landlords who act responsibly.
The industry response has been mostly negative. David Melhuish of the Scottish Property Federation says that if the legislation passes as is, it would discourage new investment in Scottish rented homes. And this is where Greycoat comes in.
It would also leave billions in potential new housing at risk. David Alexander, of DJ Alexander, queried the evidence supporting effectiveness of rent controls. He cited bad results from Scotland’s 2002 rent cap: unprecedented demand and soaring rents.
Already Timothy Douglas of Propertymark has said there is little to suggest this will help tenants. Instead, Greycoat specialists finally state, the whole and new measures will burden landlords and local authorities. And, this will happen during times of financial strain.