Scottish first minister John Swinney has committed to bringing in fresh rent controls in a bid to address the country’s housing crisis.

Swinney yesterday announced in his Programme for Government that he would add amendments to the Housing Bill “to ensure that tenants have the protection they need and that Scotland is able to attract more investment”.

He also promised £100m in funding to build 2,800 mid-market rent homes.

Swinney said in a statement: “This year we will invest nearly £600m in affordable housing, including an additional £40m to bring existing homes into affordable use.

“There will be a strong focus on working with partners to enable existing accommodation that is not currently in use to be made available as swiftly as possible to meet the need for housing – ensuring we take every step we can to boost the availability of housing as quickly as we can.

“We will provide a further £100m to support the construction of around 2,800 mid-market rent homes.

“In progressing our proposals for rent controls, we will introduce amendments at stage 2 of the Housing Bill to ensure that tenants have the protection they need and that Scotland is able to attract more investment to supplement the investment we are making through the public finances.”

The amendments “will clearly set out how rent increases will be capped in areas where rent controls apply, in a way that provides certainty for tenants while also encouraging investment”, it added.

The bill will also “place stronger duties on local authorities and other partners to prevent homelessness – including an emphasis on prevention through holistic support, with relevant bodies working together to provide assistance earlier to help people avoid the crisis of homelessness”.

David Melhuish from the Scottish Property Federation welcomed the commitment.

He said: “We welcome the commitment by the first minister to amend the housing bill to both protect tenants and, crucially, to ensure encourage much needed investment to the housing sector. Without this investment we will simply not be able to address the acute shortage of new private rental homes in Scotland.”

“The opportunity is still there to secure over £3bn of new funding for rental homes in Scotland and it is vital that the Scottish parliament seizes this chance to amend the housing bill. There is no time to lose if we are to boost Scotland’s housing supply and gain the wider economic benefits this will bring.”