Legal News

Scottish Property Federation report confirms rent controls disrupting supply of new rental homes

Published on: 17 April 2023
Published by LNB News

LNB News 17/04/2023

Document Information

Issue Date: 17 April 2023

Published Date: 17 April 2023

Jurisdiction(s): Scotland

Article summary

The Scottish Property Federation, in association with researchers Rettie & Co, has released the Assessment of Scotland’s Rent Freeze and Impacts Report. The report shows that the six-month rent freeze and recent rent cap of 3% introduced under the Cost of Living (Tenant Protection) (Scotland) Act 2022 will disrupt the future supply of new rental homes in the Build-to-Rent (BtR) sector. Nine out of 14 investors interviewed, with a combined £15bn of BtR assets, considered Scotland to be unattractive, including four who view it as un-investable under current conditions. Investors are calling on the Scottish Government to incentivise investment in the sector by creating a stable policy environment that removes the risk of ongoing interventions in the market and reduces the risk premium, positive planning policy and working with the sector to foster confidence and trust for urgently required investment.

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