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Rent control plans threaten Scotland’s burgeoning PRS market

Plans to introduce a power for local rent controls in ‘high-pressure’ rental areas in Scotland could deter investment in Scotland’s private rented sector (PRS) and curtail much-needed housing supply, according to the Scottish Property Federation (SPF). 

The SPF issued the warning as First Minister Nicola Sturgeon outlined plans to introduce local rent controls through a Private Tenancies Bill as part of the SNP’s legislative programme for the next eight months.

Over the last few months, Scotland has seen significant investment into the build to rent sector, with La Salle Investment Management recently announcing a £127m purchase of Dandara’s Forbes Place scheme in Aberdeen and Grosvenor submitting plans for 400 purpose built rental units in Edinburgh. The EDI group has also announced plans for PRS at India Quay, Edinburgh, as has Whiteburn Projects in Dundee.

The SPF is concerned that even the possibility of rent controls could sound the death knell for future investment in the build to rent market. Build to rent has the potential to rapidly boost Scotland’s housing supply, which needs to be increased dramatically across all tenures if the current housing shortage is to be resolved.   

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