Replacing the rent freeze in Scotland with a 3% cap is not enough to fix residential property problems north of the border, according to Propertymark.
The Scottish government announced last Thursday that it would introduce emergency measures to raise the current 0% cap on rent rises to 3% from 1 April 2023, while private landlords can apply for increases of up to 6% to help cover costs in special circumstances.
Announcing the new policy, tenants rights’ minister Patrick Harvie said the temporary measures are intended to be extended to 30 September 2023, with the option to extend for another six-month period if necessary.
Timothy Douglas, head of policy and campaigns for Propertymark, said that while agents and landlords will welcome the move, the rent cap legislation continues to create uncertainty.
However, he added that the bigger concern is the SNP and Scottish Greens’ desire to push on with permanent rent controls with a new Housing Bill to be produced this year.
“It is vital that we ensure that the residential property sector in Scotland is investible and that is what Propertymark will continue to campaign for,” Douglas said.