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Campaigners now accuse the rise of being down to a loophole but insist changes to include new tenants in the limited rate rise as well as existing tenants will improve the scheme \u2013 despite similar results being seen wherever rent caps are attempted.<\/p>\n
The Scottish Tenants Organisation has said the SNP\u2019s scheme is \u201cbadly flawed\u201d and needs to be changed.<\/p>\n
They said: \u201cThis loophole should have been covered by the new extension but it has not. There should be no exceptions.<\/p>\n
“The loophole shows it is a poorly thought out rent cap and reflects more of the concerns of landlords rather than tenants.”<\/p>\n
However right-leaning campaigners say no changes will improve the rent control, as wherever they have been tried in the past they have crashed the renting market and pushed costs up.<\/p>\n
Don’t miss… <\/strong> We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info<\/p>\n Matthew Lesh, Director of Public Policy at the Institute of Economic Affairs blasted the SNP\u2019s left-wing policy.<\/p>\n He said: \u201cRent control has been proven an abject failure every time in every place it has been tried. Scotland is no exception.<\/p>\n \u201cIt\u2019s unsurprising that landlords are continuing to put up rents between tenancies, and in fact it is likely that landlords are kicking out tenants to do so.<\/p>\n “If Scotland goes further with rent controls by applying it to new tenants, the result will be a worsening of Scotland\u2019s rental crisis, as properties are pulled off the market and fewer are built in future.\u201d<\/p>\n Sadiq Khan has also demanded the powers to impose rent controls in London.<\/p>\n When tried in Berlin, real estate analysis revealed rent controls crashed supply by 41 percent and drove demand up to 172 percent.<\/p>\n It also led to a rent black market, where tenants would pay the capped rent amount but agree to an additional top-up rent paid to the landlord.<\/p>\n Last year, Ireland also imposed a rent rise cap of two percent, leading to average rents increasing by 10.3 percent to \u20ac1,524 per month.<\/p>\n The number of homes available also crashed, with just 716 properties available to rent in the entire country according to the property website DAFT in August 2022.<\/p>\n
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