Minister announces further details on private sector rent controls
SFHA continues work to exempt Mid-Market Rent.
The Scottish Government has set out further details on its plans for private sector rent controls in an update to Parliament on the Housing Bill.
Minister for Housing, Paul McLennan MSP, noted: ‘In recognition of the role that social landlords play by offering properties at mid-market rent levels to support those on lower incomes, it has also been helpful to hear from Scottish Federation of Housing Association members on how rent controls will affect registered social landlords that offer mid-market provision.’
Importantly, he stated that the Scottish Government will launch a consultation in Spring on how powers that allow exemptions to the rent controls could be used by Ministers, specifically considering exemptions for properties offered for social good, below market level.
He further set out that in areas – and for parts of the housing system- where PRS rent controls apply that rents would be able to increase by CPI plus 1 per cent of the existing rent. Where the relevant CPI figure exceeds 5 per cent, the increase permitted would be capped at 6 per cent of the existing rent.
Before the government’s consultation opens in Spring, we will continue to engage with members, and the Scottish Government, to ensure MMR is exempt.