A leading Scottish letting agent says the country’s new rent arbitration scheme will only exacerbate existing problems and worsen access to housing.

The Scottish government has proposed to temporarily change the rent adjudication process for one year when the current Cost of Living rent cap measures end on 31st March.

Landlords will then be able to return their rent prices to the open market value, allowing tenants to apply to Rent Service Scotland or to the first tier tribunal if they feel the increase is unwarranted.

David Alexander, chief executive of DJ Alexander, one of Scotland’s largest letting agents, says: “It seems extraordinary that [the Government] has already been given the green light.

“Less than a fortnight to analyse the sectors’ concerns and amend the legislation appropriately seems remarkably efficient, although no changes have been made and this appears to be identical to the consultation.”

Capped

If the gap between the rent paid and its value on the open market is more than 6%, the price will be allowed to increase by 0.33% for every percentage point it is above that level, capped at a total of 12%.

The primary focus should be on increasing investment in social housing, says Scottish landlords leader John Blackwood. “Rising rents are a symptom of the failure to build enough affordable housing in Scotland. Rent controls have only caused rents to increase in Scotland higher than the rest of the UK.”

Tenants’ Rights Minister Patrick Harvie believes the plan will enable landlords to react to an increase in costs and reinvest in the PRS. London Mayor Sadiq Khan recently said he’s like to see a similar ‘rent freeze’ in the Capital.