RETTIE has revealed its concerns that Scottish Government proposals for a ‘strict’ rent control system managed by local authorities could add to Scotland’s housing crisis.
The property firm’s 2024 house price forecast shows that the number of new listings continue to fall in the Scottish rental market, which it said said highlights a demand/supply imbalance.
While rent rises are cooling in Scotland’s main cities in 2024, this is on the back of substantial double-digit rises stemming from when the rent freeze was first announced two years ago, it added.
The firm has raised concerns that proposals by the Scottish Government to deal with rent pressures contained in the housing bill that is currently making its way through the Scottish Parliament – which would see strict rent controls managed by local authorities – could have the ‘unintended consequence’ of further squeezing supply and adding to Scotland’s housing crisis.
Dr John Boyle, head of research at Rettie, said, “The rental market remains buoyant in terms of demand but there are real concerns about the direction of government legislation.
“Unfortunately, there has been very minimal levels of BTR investment in Scotland since the rent freeze was put in place even though it has now been lifted. The possibility of the introduction of another stringent system of rent controls is deterring pension funds from investing in Scotland’s housing.”
