Property sector leaders say the Scottish government’s “shift in narrative” will go some way to addressing the housing emergency.
Scrutiny of the Housing (Scotland) Bill is now reaching a critical stage andhas so far yielded a key change to rent controls demanded by the industry along with an acceptance of a broad approach to satisfying demand.
As the Scottish Parliament starts its Stage 3 line-by-line consideration of the legislation, Housing Secretary Màiri McAllan has spoken of creating a “gold standard” homeless prevention system.
She told parliament at the beginning of September that the mid-market and build-to-rent sectors would be exempt from rent controls. However, there will be a general commitment to rent controls that will aim to keep rents affordable, a decision described by the Tories as “reckless”.
Ms McAllan said: “We already have some of the strongest homeless rights in the world, however this legislation will go even further to protect and support people threatened with homelessness,” she said today.
“The actions we have taken in just the past month demonstrate our determination to tackle the housing emergency.
“A few weeks ago, I published an Action Plan backed by up to nearly £5bn and including a major affordable house building programme. This week we are set to pass groundbreaking legislation to prevent homelessness, improve standards in rental homes and keep rents affordable for tenants… through a system of long-term rent controls.”
The SPF said it welcomed the Scottish Government’s shift in narrative as the Bill has progressed, and the wider recognition that the solution to Scotland’s Housing Emergency lies in a cross-tenure approach that understands the critical role to be played by the private sector.
It described the recent move to exempt Build to Rent (BTR) and Mid-Market Rent (MMR) housing as a “positive and reassuring step for the industry, offering long-awaited clarity for those investing in new homes for rent, which are vital to expanding Scotland’s rental housing supply, increasing choice for would-be tenants.
“With Stage 3 of the Bill due this week, now await further clarity on other aspects of the legislation and hope that a pragmatic amended Bill receives cross-party support to effectively address Scotland’s housing emergency.”
The Scottish Conservatives’ housing spokesperson Meghan Gallacher criticised the SNP’s continued commitment to impose permanent rent controls.
Despite the SPF’s acknowledgement of the steps taken by the minister to address their concerns, Ms Gallacher insisted the move will worsen the hostile environment for developers, reducing the housing supply even further and leading to billions in lost investment for the sector.
She said her party would vote against the bill. “The SNP’s reckless obsession with rent controls will only deepen the housing emergency they have created in Scotland,” she said.
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