In response to the impending conclusion of the Scottish Government’s Cost of Living (Tenant Protection) (Scotland) Act on March 31, Propertymark has issued a call to its members feeling frustrated by the changes to reach out. The trade body encourages its members to contribute to the ongoing campaign against rent controls in Scotland.
The Cost of Living Act initially introduced a rent cap set at 0 percent, later increasing to 3.0 percent. Subsequently, Scottish ministers extended these powers until September 30, 2023, and further prolonged them until March 31 of the current year. Patrick Harvie, the controversial Minister for Zero Carbon Buildings, Active Travel, and Tenants’ Rights in the Scottish Government, has engaged with Propertymark to outline the government’s plans for moving away from the Cost of Living Act.
Upon the expiration of the rent cap, the rent adjudication process will undergo changes, requiring decisions to be based on one of three comparators: open market rent, a landlord’s proposed rental increase, or a new taper calculation specifying a maximum ‘reasonable’ increase for the tenancy.
Tapering, applied when a landlord’s intended rent increase is deemed unreasonable, involves determining a percentage applicable to such cases. Individual calculations hinge on the gap between the current rent rate and the open market value of comparable tenancies in matching properties, setting an upper limit based on the highest percentage for adjudicated rents.
Propertymark asserts that it has been in regular contact with Harvie since 2023, presenting evidence of the detrimental effects of the Cost of Living Act, much of which was purportedly overlooked by the Scottish Government. According to Propertymark, 100 percent of its members in Scotland have reported evidence of landlords contemplating the sale of their buy-to-let properties.
Despite the existence of a rent cap, rent in Scotland increased by 5.1 percent in the twelve months leading up to March 2023. Propertymark continues its efforts to advocate for its members and address concerns surrounding the evolving landscape of rent controls in the country.
NetRent Comment
Despite there being no evidence that rent controls work, or even keep rents stable, Mr Harvie is continuing his campaign to force Scottish landlords to bend to his will. Yet another elected politician who insists that he alone knows what’s best for us.
It is clearly beyond Mr Harvie’s wit to actually work with landlords to grow the private rented sector and thereby keep rents down and standards up. No, it’s much better to fight them all the way and make landlords villains.