A leading lettings agency boss in Scotland has hit out at his Government’s new rent control measures.

David Alexander of DJ Alexander (main picture) says the rent rise restrictions won’t work and will deter landlords from investing.

Capped

Under the new Housing (Scotland) Bill increases in designated areas will be capped at the Consumer Price Index (CPI) plus 1%, with a maximum limit of 6%.

The rent cap will apply to rent increases both during a tenancy and, crucially in between tenancies as well. There has been a temporary rent arbitration scheme in place for the last year

Disconnected

Alexander says the SNP Government is “disconnected from reality”, and is using rent controls as “raw meat” to its supporters ahead of elections next year.

Writing in The Scotsman newspaper, he questions who will collate the data to determine which are “control areas” and how it will be funded.

“The Scottish Government expects local authorities to implement this, but their response has been that without additional funding this will be impossible to do,” says Alexander, who is CEO at DJ Alexander.

It is some raw meat to throw to supporters prior to next years’ Scottish elections.”

“There is also more than a touch of cynicism in all of this since [First Minister] John Swinney’s government officials have already met with the Scottish Association of Landlords (SAL) and provided them with an outline of the timescale of the introduction of the Scotland Housing Bill which puts its implementation years beyond the next Scottish election and not before 2027-28.

“It is some raw meat to throw to supporters prior to next years’ Scottish elections,” he says.

Ministers should be negotiating with landlords’ organisations, letting agents, housebuilders, landlords, property investors and tenants if they want to create a workable solution.

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