Estate agents slam new Scottish rent cap proposal
Propertymark says that imposing an inflation-linked rent cap between tenancies doesn't give landlords any incentive to improve their properties.
New rent control measures in Scotland have met with a mixed response from the property sector.
The SNP-led Scottish Government is proposing an amendment to the Housing Bill, which will allow rent caps in areas where controls apply designed to stop landlords hiking rents excessively.
The Government says increases would be limited to the Consumer Price Index (CPI) plus 1%, up to a maximum increase of 6%.
If approved, the rent cap will apply to rent increases both during a tenancy and, crucially in between tenancies as well.
This announcement provides certainty for tenants.”
Housing Minister Paul McLennan says: “This announcement provides certainty for tenants and continues to encourage investment.
“Setting out the form of the rent cap in this way – with CPI as the basis – allows for a reflection of the costs to landlords of offering a property for rent whilst offering protection for tenants in terms of limiting more significant rent increases.”
Not impressed
Propertymark is not impressed with the Government’s approach.
Timothy Douglas, Head of Policy and Campaigns, at Propertymark, says: “The Bill, in its current form does nothing to address the demand for private rented property.
“Furthermore, rent control measures between tenancies removes any incentive for landlords to invest or upgrade properties”.
Fair offer
But David Alexander, CEO of DJ Alexander Scotland, is more positive saying it is “a fair offer”.
“This is welcome news. Everybody involved in the private rented sector (PRS) has been frustrated at the uncertainty of the Scottish Governments’ policy on rent controls, but this amendment offers landlords and investors a degree of hope for the future.”
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