27th
Aug 2021
Scotland is intending to introduce rent controls that could make it legally binding for rents to go no higher than 25 per cent of households’ incomes.
Following the deal between the SNP and the Green Party to achieve a ‘government majority’ it has come to light that the agreement includes joint commitments which both parties’ politicians share.
One of their highest priorities is to introduce rent controls for the private rented sector.
The new ‘Scottish Government’ has just published a document that outlines its major pledges saying the objectives will “implement an effective national system of rent controls, enhance tenants’ rights” as well as delivering 110,000 affordable homes by 2032.”
Green Party co-leader Lorna Slater said: “With the COP26 climate conference coming to Glasgow, Scotland is in a position show real leadership on climate. But this deal is about people as well as the planet. Together, we would deliver a new deal for tenants, giving tenants more rights and introducing rent controls to help tackle Scotland’s housing crisis.”
First Minister, Nicola Sturgeon, added: “I am delighted that the Scottish Government has reached a ground-breaking agreement with the Scottish Green Party that meets the challenges and opportunities of our time … The agreement delivers bold policy action on pressing issues. A commitment to more affordable housing, a better deal for tenants and action to tackle poverty and inequality.”
The Green Party has over the last several years championed rent controls to be introduced across the whole of the UK. The party was also partly responsible in ‘persuading’ the SNP to lengthen the eviction ban many several times during the ongoing pandemic.
As of yet the newly formed ‘ruling parties’ have not made their plans public regarding the timetable and true scale of rent controls.
The SNP’s Private Housing (Tenancies) (Scotland) 2016 Act gives Scottish councils power requesting Scottish Ministers to consider introducing Rent Pressure Zone within authorities’ boundaries.
A Rent Pressure Zone is an area which ensures that renters do not have rents increased above the CPI’s level (Consumer Price Index) by no more than 1 per cent each year over a five year period; very little number of councils have shown any interest whatsoever in RPZs.
The Greens will no doubt demand a rent control policy that has more ‘meat on its bones’.
In the Scottish Green Party’s manifesto for the May elections this year, it stated: “The Scottish Greens will introduce a cross-cutting goal of ensuring that housing costs represent no more than 25 per cent of a household’s income, including a points-based system of rent controls.
“The SNP’s Rent Pressure Zones have failed. It’s time for proper rent controls. Tenants unions will be absolutely key to all this, so we need to ensure all private tenants are aware and have access to one, as well be informed about their rights and welfare entitlement.”
Richard Merrick of PIMS says: “The real danger of their proposal which if passed in Holyrood is that that London, Liverpool, Manchester and other Labour held city councils will start ‘baying’ at Westminster to be given similar powers to introduce rent controls - another disaster waiting to happen for tenants as many landlords will sell up.
“After the 1965 Rent Act was introduced and then finally abolished in the 1980 Housing Act, according to official government figures PRS housing stock only supplied homes to one tenth of residences – shape of things to come?”
“What about introducing energy price controls as this will be one major cause for households becoming ‘heat-poor! ”
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