Keeping rents reasonable and predictable in the private rented sector

The Scottish Government should act to enhance security of tenure in the private rented sector (PRS), as the sector continues to grow and plays an increasing role in providing homes for families and those priced out of home ownership. The PRS should move away from using short-term tenancies and provide open-ended tenancies which would provide tenants with a home for as long as they need.

Tenants should be protected from unpredictable and unreasonable rent rises and a method for fixing rent which suits both landlords and tenants should be a key part of any tenure reform in the private rented sector. Shelter Scotland believes that rents should be reasonable, stable and predictable. Income through rent should continue to provide landlords with a reasonable return, encouraging investment in the sector.

Shelter Scotland does not consider that the introduction of rent control by the way of rent caps is an effective method of keeping, or making, rents affordable. This can have a detrimental effect on the rental market: people at the very bottom of the market lose out as rents rise to meet the cap. At the same time landlords are given little incentive to invest in their rental properties and are put off from carrying out repairs, harming housing quality and supply in the PRS.