Scottish parliament consults on introducing rent controls

The private housing tenancies (scotland) bill was introduced to the Scottish Parliament on 7 October 2015. In the consultations which preceded the Bill, the possibility of the introduction of rent controls was the most contentious issue for many landlords and investors who argued that rent controls would discourage investment in the private rented sector.

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A short history of rent control, contains more detail on the history of rent control in the UK. Housing policy is a devolved matter and different approaches to rent regulation in the private rented sector are being adopted by some of the devolved nations.

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In terms of tax powers, the Scottish Parliament has full control over income tax rates and thresholds on all non-savings and non-dividend income liable for tax by taxpayers resident in Scotland. The Scottish Parliament also has full control over Land and Buildings Transaction Tax and Scottish Landfill Tax.

Delegates at the Scottish National Party Spring Conference have voted in favour of introducing national rent controls for all Scottish tenants. Should the SNP win a majority in the upcoming Scottish general election this could mean landlords are unable to raise rents above a cap set by the State, even when their own mortgage costs rise.

Scotland is to introduce rent controls and ban "no fault" evictions in a shake-up of the country’s private rented sector. First Minister Nicola Sturgeon has released the Scottish National Party’s programme for government for the forthcoming year. The programme contains a Private Tenancies.

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In government we’ve exceeded our commitment to build 30,000 affordable homes in this term of the parliament through an investment of 1.7 billion. The latest housing figures from December 2015, show that the Scottish Government have delivered 31,034 homes, which included over 20,000 for social rent – over 5,000 of which were council house.

The Minister added that the Scottish Government would consult very soon on its operation. She confirmed-. but their Government pulled back on introducing rent controls at the last minute, due to concerns. the Scottish Parliament cannot accept responsibility for content on external.