Angry reaction against rent freeze which could last 18 months

There’s been a wide range of angry reactions to the Scottish Government’s passing of an emergency rent freeze and eviction ban - which could last 18 months.

The Cost of Living (Tenant Protection) Bill gives ministers temporary power to cap rents for private and social tenants, as well as for student accommodation. 

This cap, which applies to in-tenancy rent increases, has initially been set at 0 per cent from until at least March 31 2023. Ministers have the power to vary the rent cap while it is in force. 

Amongst those angered by the move is Scottish Land & Estates which says the disproportionate shift in the balance between tenant and landlord rights will lead to reduced availability of much-needed homes in the coming months and years.

The rural business organisation, which represents some of the largest providers of housing in rural Scotland, says the rights of landlords and the rights of tenants need to be properly balanced to ensure all parties have confidence in the tenancy system.

A spokeswoman adds: “There is already a scarcity of housing available for rent in many areas already, with a huge demand for any available property. This is coupled with regulations such as energy efficiency legislation for tenanted properties which is costing huge sums of money – especially in rural areas – and is leading to huge costs for property owners or the choice for landlords to leave the sector altogether.

“Whilst never completely perfect, even relatively recently we had a well-functioning private rented sector that in most cases worked for tenants and landlords.

“…We do not share the Scottish Government’s views that the interests of tenants and landlords are balanced within this emergency legislation. More properties are likely to be withdrawn from the market in the short and medium term and tenants will lose out as choice diminishes.”

And comments from Tom Monday, chief operating officer of PropTech firm Goodlord, echo that frustration.

He says: “The rushing through of this rental freeze will have long-term consequences. We are seriously concerned that the Scottish Government hasn't taken the time to fully consider the impact of this decision, with this legislation likely to continue pushing landlords out of the market at a time when rental housing stock is low and tenant demand is growing rapidly. 

"Most landlords have just one or two properties and many are now facing rising mortgage rates and inflationary pressures. A rental freeze will be the final straw and drive a huge number out of the sector for good. This is a time of acute pressure for the market and action does need to be taken to protect tenants and landlords during such a difficult time. But freezing rents isn't the answer. Instead, it risks creating the perfect storm."