The SNP’s power-sharing deal with the Scottish Green Party has collapsed, which has led housing bodies to urge the new government to scrap rent controls north of the border.
The two parties have ended their coalition, called the Bute House Agreement, leaving the Scottish National Party to form a minority government led by First Minister Humza Yousaf.
The move follows the coalition government’s decision to scrap key climate targets and a pause on the prescription of puberty blockers for under-18s.
Also, Peter Murrell, a former chief executive of the SNP and husband of the party’s former leader Nicola Sturgeon, was arrested and charged with embezzlement of SNP funds by police last week.
The coalition also introduced temporary rent caps and other controls on rental homes in 2022 – with the cap ranging between 0% and 3% — which were made permanent earlier this month.
This move has been strongly opposed by Scottish landlord bodies, who say buy-to-let owners are being forced out of the sector.
Co-leader of the Scottish Greens and tenant’s rights minister Patrick Harvie, who pushed through the rent reforms, has left the Scottish government today after power-sharing was scrapped.
Scottish Association of Landlords chief executive John Blackwood says: “The Bute House Agreement has systematically damaged investor confidence in building new homes and has forced many landlords to sell up, with institutional investors openly saying they no longer see Scotland as an attractive place to invest.
“The Scottish government must now act urgently to reverse their anti-landlord policies.
“We need a coordinated solution which encourages investment in social housing, council housing, the private rented sector and new owner-occupied homes.”
Propertymark head of policy and campaigns Timothy Douglas adds: “This must be taken as an opportunity to reset and rethink key housing policy at a time when rents are rising, there is uncertainty for agents and their landlords, local authorities are declaring housing emergencies and there is not enough property for people to rent across Scotland.
“Tax burdens on home buyers and those looking to purchase BTL property must be reduced and any plans for minimum energy efficiency standards for homes must be realistic, achievable and provide funding incentives through grants and clear advice to help people improve their homes and property.
Douglas pints out: “The cost-of-living legislation that introduced rent caps has damaged investment in Scotland, reduced available property to rent and caused rents to rise.
“We urge the First Minister to take this opportunity to rethink future plans for rent control and introduce measures that increase the supply of homes across Scotland that will ultimately make renting and buying a home more affordable.”