The end of current rent control laws in Scotland at the end of next month has been welcomed by a prominent local property figure – with the hope it may encourage investment. 

David J Alexander, chief executive of Scotland’s largest letting agency – DJ Alexander Scotland Ltd – comments: “The announcement by Scottish Housing Minister, Paul MacLennan, that the current rent control legislation is to be ended on March 31is welcome news.”

McLennan is quoted in there Herald newspaper stating that: “The temporary changes to rent adjudication were in place to support the transition away from the short-term rent cap that was in place under the Cost-of-Living Act. They were in place for year to manage the risk of very steep increases in rents for tenants if there was a return to market rent in a single step and will come to an end on March 31, 2025.”

However McLennan went on to confirm that the Scottish Government is taking forward measures to introduce longer-term rent control where this is needed.

However, Alexander sees positives in this.

He continues:  “Everybody involved in the private rented sector (PRS) has been frustrated at the uncertainty of the Scottish Government’s policy on rent controls. But this announcement, coupled with a proposed consultation including consideration of how new housing built specifically for private rent – including in mid-market rent and other purpose-built private rented accommodation – should be treated is to be welcomed.

“This should encourage a return of investment in the sector and the potential for a rapid increase in the number of new homes being built for the private rented sector. This is a positive development for landlords, investors, and tenants who will all benefit from an increase in the volume of properties being brought into the market.

“As this also means that “open market rent setting can return with no rent cap restriction” at least until the new Housing (Scotland) Bill comes into effect in 2027 this will be a comfort for landlords and investors of a greater degree of certainty for the next few years.

“This is a very positive development and is a clear sign that the Scottish Government is listening to the private rented sector and going some way to encourage growth to ensure landlords and investors can be more certain of the viability of their investment and tenants can be comforted at the prospect of a substantial increase in the supply of homes to rent.”