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Landowners say Scottish Housing Bill is ‘damaging confidence’ of housing providers
Landowners have attacked the Scottish government’s Housing Bill, saying it is “damaging the confidence” of housing providers in rural areas.
Scottish Land & Estates said this is because the uncertainty around rent controls is worsening the housing shortage, which is already causing recruitment problems and depopulation in rural Scotland.
The landowner lobby group, whose members provide 13,000 affordable homes, warned that Scotland’s landlord register had already shown a decline of registered properties in rural areas since 2022, when the Scottish Government brought in a temporary private rent freeze.
Anna Gardiner, policy advisor (rural property) at Scottish Land & Estates, said: “This is a crucially important time for housing provision generally and rural housing in particular. The uncertainty the new Housing Bill presents is damaging the confidence of those who provide homes and would like to deliver more.
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“There is a window of opportunity to make a difference but it will close rapidly over the summer months prior to the bill moving on to the next stage. We are appealing to government to take on board the experience, goodwill and commitment from those who are actually providing housing.”
The Housing Bill is set to have its first stage in the Scottish parliament at the end of the year. As well as some form of permanent private rent controls, it includes homelessness prevention duties for landlords, including housing associations.
Scottish Land & Estates gave evidence to the Scottish parliament’s Local Government, Housing and Planning Committee this week and members held a roundtable discussion with housing minister Paul McLennan at the Dupplin Estate in Perthshire.
In her evidence to the parliamentary committee, Ms Gardiner said that “anything that slows or stops the delivery of new housing is damaging the rural economy”.
She described rent controls, as proposed in the Housing Bill published in March, as the “symptomatic treatment of the housing shortage” and said that recruitment problems and depopulation are a consequence of housing shortages.
Ms Gardiner added: “Our members want to do more and were heartened by how receptive the minister was to hear real-world evidence of what is happening on the ground.
“We were encouraged to hear that he wants to see councils delivering housing strategy that incorporates the needs and opportunities in rural areas, supports more planning resource being directed to rural housing and that he is open to exploring how the Rural and Islands Housing Fund can work better for small-scale private developments.
“The minister also stressed he was keen to deliver better clarity on planning finance and the private rented sector, which are all interlinked.”
Scottish housing minister Paul McLennan said: “The Housing Bill is being scrutinised by Parliament. Ministers will continue to listen to parliamentary and stakeholder views as the Bill progresses through this process, including rural housing providers.
“Good quality housing is essential to attract and retain people in rural and island communities and from April 2016 to March 2023, the Scottish Government has supported the delivery of more than 10,000 affordable homes across rural and island areas.
“Our commitment to deliver 110,000 affordable homes, of which at least 70% will be for social rent and 10% in our rural and island communities, is backed up by our Rural and Islands Housing Action Plan.
“Demand led funds such as the Rural Affordable Homes for Key Workers Fund are key elements of our approach to addressing specific rural housing issues where they arise.”
Scottish housing associations have also expressed fears that the Housing Bill as currently drafted could render the mid-market rent tenure unviable.
Last week Sally Thomas, chief executive of the Scottish Federation of Housing Associations, warned that the Housing Bill passing through Holyrood could see “the slow demise" of mid-market rent as a tenure by hitting it with rent controls.
Nick Pollard, finance director at housing association Link Group, echoed Ms Thomas’ call for a rethink of rent controls, telling ministers: “It’s not just about bearing down on rents, it is about making sure rents remain affordable while supporting a sector which is that engine of growth.”
Speaking to Inside Housing last week, Mr McLennan said that the bill’s main themes – rent controls, tenants’ rights and homelessness prevention – are still “the right areas we need to be involved in”, but discussions with other parties about the “structure” of the legislation are ongoing.
“One of the key things is making sure we get the bill through parliament,” he said. “It needs that political support, so those discussions will continue.”
He explained that when the bill was proposed, “the thinking of that was trying to protect tenants in mid-market rent, and it could be very different in different parts of Scotland”.
The bill will have its first stage in the Scottish parliament “probably around the end of the year”, he said.
