Scotland’s temporary rent control legislation will come to an end on 31 March, in a move expected to reinvigorate investment in the private rented sector (PRS). The decision has been widely welcomed by landlords and property investors, who hope it will drive renewed confidence in the buy-to-let market.
David J Alexander, chief executive of DJ Alexander Scotland Ltd, said the policy change provides a “greater degree of certainty” for the sector until the anticipated introduction of a new Housing (Scotland) Bill in 2027.
Scottish Housing Minister Paul McLennan confirmed that the Cost-of-Living Act’s rent caps, originally introduced as a temporary measure, will expire this spring. However, he also indicated that the government still intends to implement longer-term rent controls “where this is needed.”
In the short term, open market rent setting will return, potentially encouraging developers to invest in much-needed rental housing supply.
Alexander believes this shift could have a positive impact on Scotland’s rental market, stating: “This should encourage a return of investment in the sector and the potential for a rapid increase in the number of new homes built for private rent. Landlords, investors, and tenants alike could benefit from the renewed confidence and greater certainty that this decision brings.”
With growing demand for rental properties and a need to attract investment into Scotland’s housing market, the lifting of rent controls is seen as a step towards stabilising the PRS and boosting the supply of rental homes.
