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The Herald Scotland
2 days ago
- Business
- The Herald Scotland
Landlords must lose the fight over Scotland's rent controls
Last year, the government declared a national housing emergency, recognising record levels of homelessness, the toll high rents are taking on tenants, social housing waiting lists of nearly a quarter of a million across Scotland, and disrepair rampant across our housing stock. Yet as Professor Duncan Maclennan points out, the 'housing emergency' is a misnomer. Read More: This so-called emergency did not happen overnight; it has been created by design through the privatisation of our housing stock and unregulated growth of the private rented sector. Scotland's tenants have faced the hard end of these economic decisions for decades, and bold structural solutions are urgently needed in response. Tenants don't have time to wait. Rent controls, as outlined in the Housing Bill, are an important first step towards ending decades of housing misery. Robust, universal rent controls which have the ability to bring rents down could begin to transform our housing system by making private rented accommodation more affordable and disincentivizing exploitative landlordism overall. It's important to state that forms of rent control seen in recent temporary measures have included too many loopholes for landlords to exploit. Any exemptions to upcoming rent controls would create a multi-tier system, leaving thousands of tenants open to unregulated rents and undermining future policy efforts. The current consultation on rent controls has laid bare the Government's intention to appease landlords by introducing significant exemptions to rent controls. Ruth Gilbert, national campaign chair of Living Rent (Image: Newsquest) At this last hurdle rent controls are under threat. Since the government first committed to rent controls, the landlord and developer lobbies have eroded support for proper regulation of the private rented sector among politicians. The constant barrage of criticism - combined with empty threats of a mass exodus of landlords - have pushed a pliant government into conceding to appease the market at the expense of tenants. The most egregious exemption proposals concern 'build to rent' developments. The government has proposed a suite of amendments designed to encourage these sorts of developments, but this dangerous trend towards large-scale private developments is not something they should sensibly support. Build to rent properties are expensive, and beyond the reach of most tenants. Anyone who has walked through either Glasgow or Edinburgh recently will have seen these buildings springing up alongside billboards that promise convenient locations, fun perks, and luxury accommodation. Worryingly, this is just the start of the build to rent boom, over 3,800 units have been built, and there are 12,767 still in the pipeline. This explosion of the sector should highlight that it does not need any further government incentives. Indeed, across the UK the industry received over £1bn in investment from North America in the last quarter of 2024 alone. Developers' push for exemptions only highlights the business model they are touting. The bill, as introduced, already allows for above inflation rent increases, and so lobbyists' greedy demands for more exposes a model that is more concerned with creating dividends for overseas investors than delivering on the needs of Scotland's people. The government is deeply misguided if it thinks that expensive, luxury accommodation is going to fix our housing emergency. These are development sites which can and should be used for much-needed and genuinely affordable housing for social rent. Also proposed for exemption are mid-market properties. Mid-market tenants are some of the most vulnerable in our housing system. Apparently designated for tenants with low to middle incomes, mid-market properties exist to ensure that those unable to afford rents in the private sector and who cannot access social housing are able to better afford their housing costs. By threatening to exclude mid-market tenants from rent controls, this will see mid-market landlords able to increase rent however high they like with tenants left with no recourse to challenge it. For example, this summer at Water Row mid-market development in Govan, tenants were hit with a 10.6% rent increase after being given a rent increase of 39% before they had even moved in. The rent increase was delivered despite a previous commitment to keep rent below the local housing allowance. However, tenants had no legal recourse to challenge. It was only through Living Rent members organising together and fighting back did the landlord eventually concede and cancel the rent increase. This government needs to stop listening to the empty threats of landlords and legislate to protect those who have been most impacted by decades of mismanaged housing policy. Scotland's tenants need universal and comprehensive rent controls that bring rents down. Anything short of this will ruin the housing bill, undermine the possibility of a more just housing system for years to come, and damage the wavering trust that Scotland's tenants have that politicians will take the urgent action needed to end the national housing emergency. Ruth Gilbert is the national campaign chair of Living Rent
The Herald Scotland
12-05-2025
- Business
- The Herald Scotland
Call for 'disruptive' change in Scottish housing system
However, a new report by the David Hume Institute found the label had "limitations" and is calling for a more "bold, disruptive change". As reported by The Scotsman, the report warns Scotland's housing is 'at the edge of a precipice to an even bleaker future' and should be treated as essential economic infrastructure on a par with transport, energy and digital connectivity, with overhauls of land reform and the planning system. Read More: Professor Duncan Maclennan of the University of Glasgow, who authored the report, said there was 'little recognition that successive cohorts of over-50s households have been giving the under-30s a housing 'haircut' for the last half century'. The report notes that home ownership rates are falling for every age bracket under 50, with more electoral wards and parliamentary constituencies are moving towards electorates with a majority of renters. Titled 'Prosperity begins at home: Scottish housing policies for faster, fairer economic growth', the report states that housing policy by both the Scottish Government and the UK Government has "lost any coherence", with private landlords plugging gaps in provision but also subject to increasing controls. Professor Maclennan told The Scotsman: "Without a step-change in approach, Scotland will see worsening housing unaffordability, declining regional cohesion, and underperformance in key sectors of its economy. "More and more households will be priced out of opportunity, while communities continue to struggle with poor-quality homes and fraying infrastructure.'
Scotsman
12-05-2025
- Business
- Scotsman
Declaring a housing emergency is well and good - but real action is desperately needed
Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Edinburgh and Glasgow are among locations that have applied the warning label to the issue. But acknowledging the situation is only really the first step to actually dealing with the problem. Genuine action on the ground is desperately needed. Advertisement Hide Ad Advertisement Hide Ad As Professor Duncan Maclennan writes in today's Scotsman, persisting with the status quo will only lead to worsening housing affordability. Looking out across Edinburgh from Calton Hill 'Home ownership rates in Scotland are now falling for every age decile under 50 and more electoral wards and parliamentary constituencies are moving towards electorates with a majority of renters rather than owner-occupiers,' he writes. The Scottish Government last year announced in its Budget that it was investing £768 million in the Affordable Housing Supply Programme in 2025‑26. The investment was welcome. However, it also did little more than simply reverse the previous near £200m cut to the affordable housing budget. Advertisement Hide Ad Advertisement Hide Ad Young people are struggling to get on the housing ladder, particularly in dense urban locations such as Edinburgh. According to Office for National Statistics figures, first-time buyers spent on average around 8 per cent more on their first home in Edinburgh at the start of this year compared to 2024 – and a lack of housing supply will only continue to drive up prices. Creative, out-of-the-box thinking is now required – or 'disruptive reform', as Prof Maclennan describes it. Amongst his proposals, the economist suggest tax initiatives aimed at those who hold the housing wealth. While greater taxation would not be widely popular, the proposal could be used as a jumping-off point to practically work out how to guarantee future generations access the housing market.
Scotsman
12-05-2025
- Business
- Scotsman
Piecemeal policies for Scotland's housing crisis don't cut it - this is a wake-up call
Professor Duncan Maclennan writes on what needs to be done to combat Scotland's housing crisis Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... My new report, Prosperity Begins at Home, commissioned by the David Hume Institute, exposes the economic cost of this outdated thinking and calls for bold, disruptive reform to build a fairer, more prosperous Scottish economy. The report argues that housing is not just about shelter – it is core economic infrastructure. Poor affordability, inadequate supply and an unresponsive system are now active drags on national productivity and wellbeing. Advertisement Hide Ad Advertisement Hide Ad Scotland's housing crisis is not new, but the risks are escalating. An ageing population, persistent regional inequality, and mounting climate pressures mean that continuing with business-as-usual approaches will only deepen social and economic divides. A series of Glasgow tenements. Picture: John Devlin We need more than short-term, piecemeal policy. We need a long-term, systemic shift that places housing at the heart of Scotland's economic and environmental strategy. The Cost of Inaction Substandard housing outcomes are holding back economic growth. Supply shortages and unaffordability in key areas restrict labour mobility and productivity. People are stuck in the wrong homes, in the wrong places, unable to reach the jobs that suit their skills. Rising costs drain household incomes and widen inequality. These are not fringe effects – they are fundamental constraints on Scotland's growth potential. Advertisement Hide Ad Advertisement Hide Ad Professor Duncan Maclennan For years, policy has focused on quick fixes: subsidies, rent caps and marginal land releases. But these responses barely touch the deeper issues – land market dysfunction, rigid planning systems and fragmented governance. Without systemic change, outcomes will continue to deteriorate. Housing as Infrastructure Scotland must begin to treat housing as economic infrastructure, just as we do transport or digital networks. This means integrating housing into long-term economic planning, improving investment models, and creating effective governance structures – something that currently does not exist. Disruptive reform is essential. Land reform and planning overhaul are not side issues – they are central levers. We need a planning system that facilitates, not blocks, the creation of sustainable, connected communities. Public investment must benefit everyone, not just landowners who profit from outdated policies. Break Down the Silos Housing must be integrated across all levels of government and across policy areas – economic development, transport, education and net zero. Too often, housing decisions are made in isolation, missing critical links and compounding problems. Growth zones without affordable homes push workers to the margins; developments without public transport links deepen inequality. Advertisement Hide Ad Advertisement Hide Ad The Scottish Government must urgently direct Regional Economic Partnerships to treat housing as a priority and demonstrate how policy actions in all areas impact housing – and, in turn, national missions like reducing child poverty and boosting productivity. Local authorities also need the power and resources to lead, not just administer. Instead of centralising action, government should enable combined authority housing initiatives, as seen in England. Time for Political Courage None of this will be easy. It will require political will to challenge vested interests, bridge policy silos and empower local leadership. But the alternative – continued housing failure, stalled growth, and deepening inequality – is unacceptable.
Scotsman
12-05-2025
- Business
- Scotsman
'Disruptive' change needed to Scotland's housing system, leading economist warns
Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The use and taxation of housing wealth across Scotland will need to be reassessed to 'rebalance' the nation's housing system and economy, according to a new report that calls for a major 'disruption' to existing policies. The analysis, published by the David Hume Institute, advocates a significant shake-up in how housing strategies are shaped, to reduce inequality and secure long-term economic growth. The report cautions that persisting with the status quo will only lead to worsening affordability and a decline in regional cohesion. Advertisement Hide Ad Advertisement Hide Ad Leading housing economist Professor Duncan Maclennan, the author of the report, said the nation's housing system was in crisis and 'at the edge of a precipice to an even bleaker future'. He criticised the long-standing focus on housing policy as a social welfare issue that was 'largely siloed' from the broader economic agenda. Spelling out the need for 'bold, disruptive change', Prof Maclennan said housing should be treated going forward not merely as a 'social good', but as essential economic infrastructure on a par with transport, energy and digital connectivity, with overhauls of land reform and the planning system. dinburgh became the first city in Scotland to declare an official housing emergency, amid a growing number of homeless people, a shortage of social rented accommodation and soaring rents in the private council called for more funding from the Scottish Government and committed to co-operate with outside organisations to build an emergency action plan to tackle the Capital's housing crisis. | PA The emeritus professor in urban economics at University of Glasgow said housing wealth was among the key issues that had to be addressed by policymakers. Drawing a comparison with the protests surrounding touts selling tickets for the Oasis concerts in Edinburgh this summer at hugely inflated prices, Prof Maclennan said there was 'little recognition that successive cohorts of over-50s households have been giving the under-30s a housing 'haircut' for the last half century'. Advertisement Hide Ad Advertisement Hide Ad 'Someday, to rebalance the Scottish housing system and economy, the role of housing wealth, and how it might be used and taxed, will need to be reassessed unless real house price inflation withers away,' his report states. Prof Maclennan said while there was not yet any 'real momentum' in the Scottish political economy to address the accumulation, uses and consequences of housing wealth, the issue ought to be viewed as a 'major' concern for Scottish economic policy over the next decade. 'Home ownership rates in Scotland are now falling for every age decile under 50 and more electoral wards and parliamentary constituencies are moving towards electorates with a majority of renters rather than owner occupiers,' he noted. 'Allied to the discontent of the 'left behind', sorted by the housing system into particular localities, the failure to address the roots of the 'troublesome trinity' will only exacerbate the current crises in the Scottish housing system.' Professor Duncan Maclennan | Contributed The report, entitled 'Prosperity begins at home: Scottish housing policies for faster, fairer economic growth', stresses the need to 'rethink what housing is and does' for wider wellbeing across the country. 'Reshaping the Scottish housing system to deliver faster, fairer and greener growth is, given the depths of the crises, a long and difficult journey,' the report states. 'It is time to start.' Advertisement Hide Ad Advertisement Hide Ad The analysis accuses housing policy at both Edinburgh and Westminster of having 'lost any coherence', noting the private rental sector has 'filled the gaps' in provision, but now faces unclear control proposals that are diminishing new investment. 'This approach does not add up and it does not offer a coherent system of governance for exiting the housing crisis that is, in mid-2025, still deepening,' Prof Maclennan said. 'With an inadequacy of public resources to halt deterioration in housing outcomes, let alone remedy them, major, not marginal, change in how Scotland understands and manages the housing system is required. It is time for policy disruption.' His report said while housing was a 'core system' in the Scottish economy, the thinking in the Scottish Government had seen it become a "modest budget managed by a minister without Cabinet rank'. The analysis adds: 'Scottish policy has little sense that housing is essential economic, social and environmental infrastructure.' The report also criticises the approach to housing in rural areas. 'It is becoming blindingly obvious that an inability to think about the limits of housing market information and the inadequacy of housing planning for thin rural housing markets has needlessly denuded rural localities of younger and skilled workers,' it hits out. Advertisement Hide Ad Advertisement Hide Ad 'That market failure has remained unrecognised in housing policy and planning since Scottish Homes/Communities Scotland were abolished two decades ago.' The report also scrutinises the decision by a dozen local authorities to declare a housing emergency, describing the label as having 'limitations' in the face of wider pressures. 'It has the implications that difficulties have arisen suddenly in an unanticipated way, and that heralding the emergency will induce more rapid resource support from others and usher in the onset of crisis resolution,' the analysis said. 'However, fiscal constraints aside, this is unlikely.' Outlining the shift in housing policy that is required, Prof Maclennan called for a 'rapid consolidation and strengthening' of 'scattered and inadequate' evidence to inform policy choices, with a new 'whole of government' approach essential. Advertisement Hide Ad Advertisement Hide Ad He also said there was a need to rethink the way non-profit housing operators operate in rural and small-town Scotland, envisioning such entities as 'cross-sectoral agents for change', and called for ministers to consider future demands for housing and tax arrangements for the sector. In an accompanying op-ed piece, published in today's The Scotsman, Prof Maclennan said the cost of 'inertia' was clear.
