New statistics show that far from easing the ‘housing emergency’ the Scotland Housing Bill and its restrictions on rents will make the PRS worse says agency boss David Alexander (main image).

The figures reveal that before the introduction of cotrols on rents in September 2022, they were rising comfortably below inflation and for example, between 2010 and 2022, the average annual increase for a one-bedroom flat was just 2.6%. Comparable rents are now rising at 11.2% a year.

There is a similar story for three-bedroom properties, where rents rose by 2.9% a year up to 2022. Since the legislation came into force they have increased by 25.4% – an average of 12.7% a year

At odds with facts

David Alexander, the chief executive officer of DJ Alexander Scotland, adds: “While the Housing Scotland Bill has just been debated at Holyrood the proposals it contains are at odds with the facts outlined in the latest annual statistics.

“These figures show that the introduction of rent controls from September 2022 has actually substantially increased the rate of growth of rents. Prior to this date, the majority of Scotland experienced either falling rent rises in real terms or near inflation levels throughout the previous 12 years.”

Intervention has done more to harm tenants’ pockets than anything else that could have happened.”

“What that legislation did was put the brakes on property investment in the private rented sector PRS), it led to landlords leaving the market, and consequently has increased demand to unprecedented levels which remain to this day.”

Alexander, concludes: “The logic of this data is that we need to scrap plans for rent controls and rent caps, work with the PRS to grow the sector as a sustainable and valued element of the wider housing offering in Scotland, and let the market find its own level again.

“Intervention has done more to harm tenants’ pockets than anything else that could have happened. It is only by learning this lesson and reacting sensibly to it that the current levels of demand in the PRS will be resolved. Failure to do this will simply cause further rises in the future.”

Read more about the Scotland Housing Bill.