Mid-market Rent

Update

SFHA met with civil servants last month to discuss the rent control reforms proposed in the Housing Bill. As members know, we are seeking an exemption under the PRS rent control proposals for mid-market rent homes provided with public funds and RSL subsidiaries.

Currently, the Housing Bill creates a power for Scottish Ministers to specify types of property where rent controls do not apply, but has not yet identified those properties. The rent control area designation criteria and potential restrictions on rent increases for PRS are not yet defined in the Bill.

After significant advocacy on the controls, the Housing Minister and civil servants have confirmed their commitments to ‘review’ the rent controls and continue to acknowledge our warnings of the impact of capturing MMR in the proposals for PRS rent controls.

Further activity

Civil Servants from the PRS reform team are planning further engagement with members over the summer to discuss rent control level details, exemptions, and different applications directly with MMR providers. We will keep members posted on the engagement information when it is available to us.

We will also continue to collect information from members for policymakers information, including evidencing:

• The financial effects/loss from the cost-of-living rent cap, to demonstrate the impact of lost investment on MMR and mixed tenure pipelines
• Details of existing tenant protections, including MMR rent-setting practices and tenancy support/sustainment services available to MMR tenants

Please get in contact to add examples, case studies, and financial calculations or provide feedback. Thank you!

Timings

The Housing Bill is currently in stage 1 (debate on general principles), which is expected to close by the end of November. It will then move on to stage 2 (amendments). SFHA is not aware of any changes to the timings at this point.

Input

To discuss or share further information in the meantime, please contact Annabel at apidgeon@sfha.co.uk.