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Renting In Scotland Just Got Better

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The Scottish Government is going to introduce rent controls

The Scottish Government is to introduce rent control powers to limit steep rises in the cost of housing, it has announced. First Minister Nicola Sturgeon today released the SNP’s programme for government for the party’s final year before the 2016 Scottish Parliament elections. The programme contains a Private Tenancies Bill which includes measures to “provide more predictable rents and protection for tenants against excessive rent increases, including the ability to introduce rent controls for rent pressure areas”.

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Economically speaking, its a dumb idea, but hopefully the more councils that do this the more govt will sit up and actually recognize there is a problem and release a few million acres for new homes.

..apart from the fact housing is over priced not because of scarcity ..but because of the government injecting financial scaffolding to keep prices high.....less government interference is needed ..apart from the eradication of money laundering supporting the market especially in London.... :rolleyes:

Edited by South Lorne

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New model tenancies will also increase security of tenure for tenants and prevent landlords from asking tenants to leave simply because a fixed-term contract has ended.

I'm back to the UK shortly.

I'm seriously thinking of renting in Scotland if this is true (can work anywhere). I'm a happy renter. Just give me a 5 year contract, a reasonable monthly rent in a reasonable property, and I'm yours.

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..apart from the fact housing is over priced not because of scarcity ..but because of the government injecting financial scaffolding to keep prices high.....less government interference is needed ..apart from the eradication of money laundering supporting the market especially in London.... :rolleyes:

Fine, but what do rent controls do to stem that money chasing the housing stock

The rhetoric is in the right direction, for sure, but cant see it achieving much.

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..apart from the fact housing is over priced not because of scarcity ..but because of the government injecting financial scaffolding to keep prices high.....

The two are not mutually exclusive. Housing is genuinely scarce in London/SE with more and more people being packed into basically the same housing stock year after year.

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Pathetic Socialist move. Won't achieve a damn thing except reduce letting quality.

#banHTB #letmktsetrates #bringbackcapitalism Sorted.

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This could get interesting in Aberdeen. Currently rents are become deflationary as there is a glut of rentals and people are getting reductions in rent accepted.

Now if the oil picks up again rents may start to want to go up... But they will be prevented from returning to where they were previously by this measure.

I sense a few more BTL heading for the exit door :)

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oh dear, this is a very, very bad idea

when will governments learn that their interfering in a market really isn't good for consumers or the market generally?

housing is a great example, laced with government interference: in planning, in building regs, in HTB and the myriad of other schemes that purport to help buyers then, more recently, in HMO licences and now this: a ludicrous suggestion to control rents

like many governments, the Scottish one's opinion of its capabilities is far greater than its actual capability

Oy, Sturgeon keep your nose out! Out of the housing market and out of all other markets.

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Why is it bad for governments to protect/enforce longer tenancy agreements? The current system is already broken. Renting should be seen as a secure alternative to buying. It currently isn't secure at all.

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The Scottish Government is going to introduce rent controls

independent

another crap for sheep. we do NOT need rent controls. we need affordable building plots. it costs about £40k to build a 2bedroom flat. About £70k a small terrace.

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another crap for sheep. we do NOT need rent controls. we need affordable building plots. it costs about £40k to build a 2bedroom flat. About £70k a small terrace.

The funny thing about Scotland is....little or no population growth.

They dont need building at all.

https://en.wikipedia.org/wiki/Demography_of_Scotland

1971 5,229,000

1981 5,035,000

1991c 5,083,000

2001 5,062,000

2011 5,295,000

Edited by TheCountOfNowhere

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Be interesting to see what this actually does to rents.

If it does introduce a measure of control the old "but rent controls never work" arguments will suddenly look very hollow.

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This is purely anecdotal but I have a friend of a friend in Glasgow and was speaking to them 2 weeks ago.

He shacked up with his bird and rented his flat out.

4 years later, it's worth 20-30% less that he paid, the tennant just absconded with all the fixtures and fittings and last year they got hit with a bill for £3K for something or other than wiped them out.

They flat is on the market and they just want rid of it.

They need to sell at a 20% loss just to clear the mortgage.

Unplanned lord....BTL Idiot...Mugs....call them what you will but they believed what they were told and thought they'd make a forune.

Decent people too, Vebger probably doesn't but I genuinely fell sorry for them.

Now rent controls....who'd buy into BTL in scotland now.

Edited by TheCountOfNowhere

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"Renting In Scotland Just Got Better"

No it didn't. Better would be - take away the props

Thats exactly right. People dont need more ocntrol, we need NO control and a safety net for the few.

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Firstly abolish all props for the housing market. Job done.

Only thing is you'd probably abolish most banks in the process and as they create 97% of the money supply you'd have to have some serious discussion about how the economy works.

My vision would be local currencies and local economies. ****** the banks and globalism.

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The Scottish Government is going to introduce rent controls

independent

As pointed out by quite a few, it's economically illiterate and will achieve nothing good - this is handling the unintended consequences of a plague somewhere else. The more they attempt to choke off the unintended consequences, the more unintended consequences will arise that will also present the bureaucrats with a dilemma - impose new controls or abandon the previous socialist style props. Road to serfdom it's called.

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Be interesting to see what this actually does to rents.

If it does introduce a measure of control the old "but rent controls never work" arguments will suddenly look very hollow.

If it 'works' (probably because of some other factor that has changed) it will be SNP ingeniousness.

If it doesnt, it'll be the fault of the English.

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If it 'works' (probably because of some other factor that has changed) it will be SNP ingeniousness.

If it doesnt, it'll be the fault of the English.

Quite.

It'll work I think.

Basing that on having lived in Germany decades ago (where rents were well controlled).

But be interesting to see what happens.

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Quite.

It'll work I think.

Basing that on having lived in Germany decades ago (where rents were well controlled).

But be interesting to see what happens.

...in Germany housing does not have the government props and financial water pumps which prevail here ....the UK government is fighting it's own weak policies with cut backs on BTL and now the Scottish government with rent controls....the props should be removed ..and that would bring reality to the market place...and this experiment in Scotland will be worth a try.... :rolleyes:

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...in Germany housing does not have the government props and financial water pumps which prevail here ....the UK government is fighting it's own weak policies with cut backs on BTL and now the Scottish government with rent controls....the props should be removed ..and that would bring reality to the market place...and this experiment in Scotland will be worth a try.... :rolleyes:

The other view would be that most of the props in place - the Scottish Government have no power to do anything about ?

There have been a few Scotland specific ones introduced - no doubt there - but the main ones are all UK wide.

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