Rent control exemption ‘offers certainty to investors’ – Daily Business

Property leaders said the Scottish Housing Secretary’s decision to exempt key categories from rent controls would offer certainty to investors and help boost the supply of homes.

Mairi McAllan told MSPs she would lift mid-market rent and build-to-rent properties out of the pricing mechanism “to protect and promote investment in those sectors”.

Her decision on rent controls formed a key part of her response to the Housing Emergency which includes a commitment to building more homes.

She told the chamber: “Since I took up the role of Cabinet Secretary I have listened to calls from the sector for multi-year funding to give housebuilders more long-term certainty.

“Today I have committed to investing up to £4.9 billion in affordable homes over the next four years.

“This long-term certainty and increase in funding will support delivery of around 36,000 affordable homes and provide up to 24,000 children with a warm, safe home.

“We cannot tackle this emergency alone though and I need everyone from across the private and public sector to pull together and deliver this plan to ensure everyone in Scotland has access to a safe, warm and affordable home.”

Scottish Property Federation interim director Robin Blacklock said: “Today’s statement marks a positive and reassuring step for the industry, demonstrating that our concerns have been acknowledged.

“The exemption for mid-market rent and build-to-rent (BtR) offers some long-awaited certainty for those investing in new homes for rent, which are vital to expanding Scotland’s rental housing supply.  

“We also support the target to achieve a minimum 10% year-on-year increase in housing delivery across all tenures over the next three years and welcome the government’s ambition to secure £4.9bn investment into the delivery of new affordable homes, which recognises the important role that private investment can play.

“These moves, combined with an ‘emergency-led’ approach to planning delivery will be critical to providing certainty and boosting Scotland’s housing supply.”

Stage 3 of the Housing (Scotland) Bill, due at the end of this month, is expected to provide further clarity on other aspects of the legislation. 

Jane Wood, chief executive of Homes for Scotland, also welcomed the Action Plan as reflecting “positive change in both engagement and tone” from the Scottish Government.

“Ministers nor officials were in any doubt that only radical action was sufficient to turn the corner,” she said.

“It is clear that the Cabinet Secretary for Housing has listened both to the challenges our members are facing as well as the solutions we have been promoting.”

Opposition parties were less supportive of the plan, with Scottish Conservative shadow housing secretary Meghan Gallacher accusing Ms McAllan of producing “yet another empty statement on an issue where the SNP government have completely run out of ideas”.

Ms Gallacher added: “It is over a year since Holyrood declared a housing emergency, yet the nationalists are still moving at a snail’s pace in delivering the homes Scotland needs.

“They continue to create a hostile environment for investors, and they are still wedded to their reckless approach of long-term rent controls, which will reduce the housing supply even further.

“Mairi McAllan started her new role by failing to know how many people are on housing waiting lists on her watch, and this statement shows she still isn’t up to speed

“The SNP need to go much further and faster in tackling the housing emergency, but these measures will do very little to achieve this.”

Scottish Labour housing spokesperson Mark Griffin said: “Two years ago, housing emergencies were declared in communities across Scotland. Eighteen months ago, the SNP government acknowledged the crisis.

“Now, finally, the government has published a housing strategy – but it lacks ambition.

“The strategy includes just one sentence on planning – but without planning reform, we won’t build the homes we need.

“This is still too little, too late and it will not tackle the housing emergency the SNP created.”