Rent freeze in Scotland 'diverting millions of pounds in development to England'

dailyrecord.co.uk:

A Scottish Government decision to freeze rents has led to the loss of "hundreds of millions of pounds in developments" to England, a top architect has warned.Paul Stallan, who co-designed the Commonwealth Games athletes' village in Glasgow, said the SNP/Green decision to intervene in the rental market had been "well-intentioned" but was now "proving to be damaging".The design expert warned the policy had led to a "complete halting" of the build-to-rent sector in Scotland.In a post shared on social media, Stallan said: "(The) Scottish Government’s intervention into the private rental sector has been well-intentioned, however as a blunt instrument it is proving to be damaging."The Cost of Living (Tenant Protection) Act was conceptualised with good intentions, however what has transpired is a complete halting of inward investment in the Scottish build to rent sector. "Hundreds of millions of pounds have been diverted in the last six months out of Scotland into development in England.

This has been compounded locally by a hike in rents on newly let properties."If these temporary measures are extended post March 2023, the private investment, that accounted for 70 per cent of new dwelling completions in 2021/22 will exit Scotland meaning the housing crisis will be compounded, with existing property rents remaining high due to shortage of supply. "The more product and choice the more affordable the rental landscape becomes."Nicola Sturgeon announced emergency legislation last year to cap rents for private and social housing tenants until the end of March 2023.Patrick Harvie, tenants' rights minister, last month signalled his support for the rent freeze being extended beyond next month.However, a ban on social rent increases