Campaigners lose rent cap court battle
An attempt to overturn the cap on rents in Scotland through a Judicial Review has been rejected.
Campaigners fighting a rent cap in Scotland have failed in an attempt to overturn it in court.
A Judicial Review came out in favour of the Scottish Government’s move to impose rent controls as a means to ease the cost of living crisis.
Propertymark says it is disappointed by the outcome, and goes onto warn the policy is “hugely detrimental” to the Scottish PRS.
Emergency legislation
The current emergency legislation introduced under the Cost of Living (Tenant Protection) (Scotland) Act 2022 is due to expire in March next year, and is widely expected to be replaced with wider, more permanent legislation.
The original aim behind the Scottish Government’s decision was to stop tenants from being evicted by a landlord who wanted to raise rents.
Earlier this week, new figures from lettings portal Citylets showed rents for new tenancies in Scotland have risen by more than 10% for the fourth quarter in a row.
Leading role
Propertymark played a lead role in petitioning a Judicial Review, which was submitted to the Court of Session in Edinburgh in January.
The petition argued that by discriminating against certain sections of society, the new legislation had the potential to breach the European Convention of Human Rights.
Government U-turn
In April, the Scottish Government committed a U-turn by introducing a rent cap instead of a rent freeze.
Many landlords have warned they may be forced out of the sector entirely.
The private rented sector is a crucial provider of housing and has been incredibly let down.”
Nathan Emerson, CEO at Propertymark, says: “Propertymark are enormously disappointed and concerned at today’s outcome from the Judicial Review regarding rent controls across Scotland.
“The private rented sector is a crucial provider of housing and has been incredibly let down by a clear lack of understanding which is now driving good landlords away from the private rented sector,” he says.
“Private landlords currently commit to providing homes on a huge scale across Scotland, and they must be assured that they can cover all costs.”
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50+ years exerience in the property business leads me to believe that heavy handed legislation usually has the exact opposite effect to that originally intended.
So the High court thinks its just and legal to instruct a private supplier what price they can charge for goods or services. Why not try that with supermarkets, etc, as the sole justification – cost of living crisis, has meant Everyone increasing their prices, due to inflation.
Singling out rents is discrimination and should be taken further.
Put a price limit on Bakers and try and buy a loaf of bread. – Rental properties will be as rare as Rocking Horse pooh.