Propertymark has appealed to the Scottish government to end the rent cap following Scottish Labour’s declaration of a housing emergency.
The rent cap, which currently limits rent increases to 3% from April 2023 to March 2024, has been blamed on dwindling supply, pushing up the cost of new rentals.
Scottish Labour MSPs yesterday tabled a motion to declare a housing emergency across Scotland.
Scotland has also seen a shocking 12% rise in private rent prices – higher than any part of the UK outside of London.
Timothy Douglas, head of policy and campaigns at Propertymark, said: “It is high-time that the SNP and Green administration running the Scottish government realise the damage the cost-of-living legislation that introduced rent caps has had on the private rented sector in Scotland – demand for rented property is souring, tenants are staying put and rents are rising.
“In addition to this, landlords can only get a loan of up to £15,000 for energy efficiency improvements and in December last year the Scottish government raised the Additional Dwelling Supplement to 6% of the purchase price when buying a buy to let property – Scotland is now the most expensive place to invest in the private rented sector across the UK.
“The Scottish government need to urgently review all taxes and costs impacting private landlords and agents in order to tackle the housing emergency and introduce policies that don’t stifle growth and bring down the cost of renting.”
A record- breaking 15,000 Scots are homeless or in temporary accommodation, with the number of rough sleepers on the rise.
Meanwhile, the number of homes built under the SNP’s social homes programme this year has plummeted by a staggering 26% compared with 2022-23.
Edinburgh council declared a housing emergency in the city at the start of the month.