Human consequences of rent control in Scotland

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The escalating cost of housing is a pressing issue as the demand for rental properties continues to outpace supply. Rent control is argued by some to be a necessary response to rising rents but, as shown from case studies worldwide, it usually damages supply and impacts availability and affordability.

While rent control aims to protect tenants from rising costs, it often inadvertently contributes to housing inequality. With limited rental options, those who are more financially disadvantaged struggle to securesuitablehousing,limitingtheir opportunities for social mobility and affecting access to education and work opportunities.

Draconian rent control policies will have economic consequences for communities and businesses. By reducing investors’ appetite and viability, the recent rent freeze legislation has discouraged investment and can only lead to a decline in the overall quality of housing.

It is essential to evaluate whether current rent control policies are achieving their intended outcomes. We can do this by asking a couple of simple questions. Firstly, do tenants have more affordable housingoptions?andsecondly, has the shortage of rental properties been addressed? By understanding these outcomes, policymakers can determine if adjustments or alternative strategies are necessary to better address housing issues.

For Scotland, the answers when we look at the data is no. Average rents on new tenancies have soared by nearly 14 per cent in the last year as rents on existing tenancies have been frozen and then capped. The average time to let a new