A new high-level umbrella group of industry leaders set up in response to the SNP’s new housing law has warned some aspects of the proposals could face a "potential legal challenge".

In part one of a new special series, the group that "collectively represents the entire spectrum of private rented housing providers across Scotland" spoke exclusively to The Herald.

It has raised "significant concerns" around rent controls and the proposed Housing (Scotland) Bill currently under consultation.

More Homes More Quickly, made up of leaders of companies and industry organisations with wide-ranging membership, has written to Paul McLennan, Housing Minister, to put forward alternative rent control options.

The eight senior industry figures wrote: "The current approach to rent control in the Bill aims to build flexibility into the framework to avoid material unintended outcomes.

"However, it is crucial to recognise that reducing the supply and quality of private rented stock and potential spillover effects to non-controlled areas (for example, higher market rents) must be minimised."

They pointed to a RentBetter study that "suggests that reduced supply and access to the private rented sector could significantly impact lower-income and other demand groups in housing need", adding: "This evidence, however, seems inadequately addressed in the Fairer Scotland Duty assessment and could carry with it legal implications.

"The main issue with the Scottish Government's assessment is that it identifies reducing supply as a risk but provides no concrete proposals for mitigating this risk.

"Instead, it offers vague assurances that the rules will be localised and there will be unspecified exemptions. These unspecified measures are inadequate for making informed investment decisions. Investors require clear, actionable policies to gauge the viability of their investments in the rental market."

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The group also said: "We need to ensure that this current legislation does not exacerbate an already increasing problem, and in this respect there are potentially workable approaches to rent control such as annual inflation-linked uplifts, subject to a reasonable cap, to endure for an overall maximum duration."

The group represents people in the industry including "small-scale landlords with one or two properties, institutional investors with hundreds of homes, rural housing providers and letting agency businesses".

They include Robin Blacklock, director, MHMQ and managing director of real estate consultancy Dowbrae, John Blackwood, of the Scottish Association of Landlords, Anna Gardiner, of Scottish Land and Estates, David Melhuish, director of the Scottish Property Federation, Timothy Douglas, of Propertymark, a membership organisation for estate agents, Brendan Geraghty, chief executive of the Association for Rental Living, Cedric Bucher of Hearthstone Investments, and John Boyle, director at Rettie and another prominent industry figure.

They also said: "The current approach to rent control in the Bill aims to build flexibility into the framework to avoid material unintended outcomes.

"However, it is crucial to recognise that reducing the supply and quality of private rented stock and potential spillover effects to non-controlled areas (for example, higher market rents) must be minimised.

"It is our view that the FSD assessment for the Housing (Scotland) Bill is flawed in its current form as it does not adequately consider the potential negative impacts on rental housing supply and quality. The evidence from the RentBetter research and other sources highlights significant risks that must be addressed through strong and targeted policies to mitigate negative impacts.

"The current assessment's failure to specify mitigation measures creates uncertainty and hampers investment decisions. Our proposed measures for rent control offer a balanced approach that can stabilise rent levels, protect tenants, and encourage investment in the rental market."

Mr McLennan told The Herald in response: "A fairer, well-managed private rented sector is in the interest of both tenants and responsible landlords.

"We continue to engage with stakeholders on rent controls as the legislation goes through the parliamentary process.

"Our Housing Bill includes a package of important reforms to the rented sector, and we will continue to work with tenants, landlords and investors to ensure the measures in the Bill will support our vision for improving the supply and affordability of high-quality rented housing in Scotland."

Alison Watson, director of Shelter Scotland, said: "Renters in the private sector in many parts of Scotland are facing runaway costs. Anything which can put the brakes on is to be welcomed.

"There’s a lot of detail missing in the Bill, but if implemented properly rent controls have the potential to offer tenants protections and improve affordability across the sector.

"It’s important that as that detail is filled in, the voices of those currently living in the private sector and struggling with costs are heard loud and clear by politicians.

"But you can’t legislate the housing emergency away. A broken and biased housing system can only be finally fixed with systemic solutions."

Ruth Gilbert, national campaigns chair for tenants’ union Living Rent, also said that rent controls can work and added: "The legislation already contains proposals for review and local adjustment. But their proposals forget that rents are already out of control.

"Granting local authorities the power to enact a zero per cent rent cap - as outlined in the Housing Bill is urgently needed to help reduce rents to affordable levels.

"Rent controls done properly will protect everyone, particularly those most vulnerable, by ensuring people are able to remain in their homes and stop people being forced onto the streets."

Tomorrow: The European examples held up by the Scottish Government as exemplars