LANDLORDS have said plans for a rent freeze in Scotland could give tenants the impression they don’t need to pay rent at all.
Propertymark, an organisation representing estate agents and property owners, has written to the Scottish Government to express concern over emergency plans to freeze rent over the winter.
Nicola Sturgeon announced earlier in the month that her Government would seek to control rents in a move she described as being on a “scale similar to the Covid response”.
A ban on evictions will also be in place until March 2023 and both measures will come in the form of emergency legislation expected to pass Holyrood in the coming weeks.
But Nathan Emerson, CEO of Propertymark, has said his organisation is concerned that the move will become permanent and said landlords were not being given enough detail on the plans.
In a letter to Housing Secretary Shona Robison, Emerson said: “We have a strong belief that a significant proportion of tenants will interpret a rent freeze as an instruction not to pay rent.
“As a result, letting agents fear there will be more rent arrears, evictions, and cases for the First-Tier Tribunal after the end of March 2023.”
He added that it was “unfair” to suggest landlords would be raising rents to “unsustainable levels” which exceeded their own increased costs.
Mortgage payments increased earlier this year when the Bank of England lifted interest rates – something it is expected to do again later this week.
“Landlords face the same rising costs as tenants as well as increases in mortgage interest rates and maintaining properties at the same rate of rent will be unaffordable for many,” Emerson added.
“Propertymark is also concerned that these new temporary protections will become permanent as has been the case with other measures introduced during the pandemic.
“We are therefore seeking assurances that the Scottish Government will ensure that these measures will be temporary and a freeze on the cost of rent and a moratorium on evictions will [not] return once the legislation lapses next year.”
Regardless of industry objections, the legislation is expected to pass, as it will likely have the support of Scottish Labour, the SNP and the Scottish Greens.
The Scottish Greens previously argued against Labour’s calls for a rent freeze but have said the new plans will allow the Government to control rents without increasing evictions or risk increasing rates to unaffordable levels.
A Scottish Government spokesperson said: "These are exceptional measures developed to reflect a rapidly worsening cost of living crisis.
"If approved by the Scottish Parliament they will help ensure tenants – including students in the private rented sector – can remain in their homes and that they won’t see their rents rise over the autumn and winter.
“We are committed to working with landlord and tenant bodies as these measures are finalised, and we intend to provide safeguards for landlords so that their particular circumstances are taken into account, where appropriate."
