Scotland's landlords closer to getting rent caps - but students want more

Despite a nationwide housing crisis and growing numbers of landlords selling up, the Housing (Scotland) Bill has cleared its first legislative hurdle. 

That means that rent rises look set to be capped at CPI+1%, with a maximum limit of 6%. 

There will also be a system of rent controls to help prevent evictions and tackle poverty. 

But NUS (Scotland) says that loopholes 'that disadvantage students' must be closed - and the government must ignore the landlord lobby. 

Close loopholes which disadvantage students 

The union's president, Sai Shraddha S Viswanathan, said: "The housing bill is a strong first step to tackling Scotland's housing emergency and we've passed the first hurdle to seeing it become law.  

"But now the real work begins. In stages 2 and 3, MSPs must work to close loopholes in the bill which disadvantage students and apprentices and must oppose any weakening of tenant protections and rent controls." 

She added: "During the debate in parliament some parties signalled a desire to weaken the bill's measures, and echoed lines used by the landlord lobby which values profit over people.” 

Amendments to protect students 

Previously, NUS Scotland had urged all MSPs to support the bill, recognising it as a crucial step in addressing the housing crisis, while pushing for further amendments to better protect students.  

Specifically, it wanted rent controls and tenant protection regulations to be applied equally to purpose-built student accommodation (PBSA) and the private rented sector.  

It also wants to make it illegal for landlords to require tenants to have a UK-based guarantor who owns property or earns above a certain threshold. 

Last month, the union published a student housing survey revealing that 34% of students in Scotland struggle to pay rent, with 42% of those students having gone without heating as a result.  

Rent controls had broad support 

In the debate, Housing Minister Paul McLellan said rent controls had broad support in the country - underlined by one poll showing that 82% of respondents said so. 

He said: "The Housing (Scotland) Bill will play an important role in helping to tackle poverty by keeping rents affordable and ensuring people can stay in their homes. 

"Ensuring everyone has the right to a safe and stable home is essential to the Scottish Government's priority of ending child poverty and the Bill will play a role in reaching that goal." 

However, there has been criticism from the Scottish Property Federation (SPF) which is arguing that the Bill fails to address the 'lack of new investment and availability of homes to rent'. 

The federation's director, David Melhuish, said: "Put simply there is a huge imbalance in the market with too much demand for too few homes." 

Rent control proposals would 'backfire’ 

Previously, the Scottish Association of Landlords (SAL) warned that rent control proposals would 'backfire'. 

Its chief executive, John Blackwood, said that the Bill could penalise those landlords who keep rents low to help their tenants. 

He said: "We know that such controls will backfire, forcing landlords out of the sector and pushing rents up and supply down." 

Also, the Scottish government's economic agency has warned imposing rent controls would worsen the housing crisis. 

The South of Scotland Enterprise (SOSE) said long-term rent controls will spark uncertainty and will lead to landlords leaving the PRS. 

Reduced investment in rental properties 

The managing director of Accommodation for Students, Simon Thompson, says that rent controls could lead to reduced investment in rental properties, ultimately decreasing the quality and availability of housing.  

He said: "Rent controls often result in unintended consequences, such as discouraging landlords from maintaining or improving their properties. 

"As the bill progresses, it is crucial for landlords to stay informed and engaged in the legislative process to ensure their interests are represented and to advocate for a balanced approach that considers both tenant needs and the sustainability of the rental market." 

He added: "The idea being put forward that landlords put profit over people is nonsense when most landlords in Scotland, including student landlords, offer quality homes at a reasonable rent."