A group of influential housing industry figures has written a strongly-worded complaint over the SNP Government’s handling of its new homes law consultation.

The signatories said Paul McLennan, Scottish Housing Minister, has "overlooked the potentially catastrophic impact" around so-called unintended consequences of the planned legislation.

It comes as The Herald ran a three-part special series on concerns generated from within the housing industry over proposed new Scottish rent controls and the arguments in favour of such measures from tenants’ representatives.

The new industry group, called More Homes More Quickly and made of representatives of industry bodies and company chiefs, said that "rent controls can work, but they need a strong foundation of data and a framework that doesn't deter investment", and Living Rent, the tenants' union, said that "effective rent controls are a crucial part of the solution to Scotland's housing emergency".

A letter to Kenny Gibson, convenor of the Scottish Government’s finance committee, the group, which "collectively represents the entire spectrum of private rented housing providers across Scotland", challenges the evidence that Paul McLellan, Housing Minister, has given to the committee.

They said the Minister "overlooks the cumulative effect of restrictive regulation and the potentially catastrophic impact of a mechanism which could freeze rental levels for five or more years".

"Despite extensive stakeholder engagement and evidence presented to the government, the Minister's response has misrepresented our legitimate concerns and dismissed the substantial impact of the proposed legislation,” the signatories wrote.

"This undermines the credibility of industry experts and ignores data showing a decline in rental properties."

SPECIAL SERIES:

Part One: SNP housing law 'open to potential legal challenge'

Explainer: New Scottish housing rent controls put forward by industry

Part Two: Housing law rent controls exemplar was ‘unmitigated disaster’

Comment: Scottish rent controls plans 'rejected by councils'

Part Three: Housing law ‘killed off all interest’ in building homes to rent

Comment: Housing emergency 'has never been more glaring and urgent'

The group, which includes, the Scottish Association of Landlords, Scottish Land and Estates, Scottish Property Federation, Association for Rental and Hearthstone Investments, also said: "Additionally, use of the Scottish Landlord Register data to suggest that the Private Rented Sector has been unaffected by the recent emergency legislation is misleading.

"The Landlord Register data provided by the Scottish Government shows that many regions have seen a decline in the number of PRS properties … the Scottish Government’s own estimates of the number of privately rented shows a fall of 9% over the 2014-22 period, at a time when the total number of dwellings has risen by 6% due to rising population and households.”

"The Bill does nothing to address the fundamental point of demand and we are concerned that the proposed rent control regime is the only option considered to help affordability for renters. There is a significant opportunity to enhance the rented sector in Scotland through professional management and large-scale investment."

The Scottish Government said that "the latest Scottish Landlord Register data shows the number of registered properties has increased by 9,038 properties (2.7%) between August 2022 and June 2024, whilst the number of registered landlords has decreased by 1,044 (-0.4%) over the same time-period".

This week we have reported that the proposed housing law could be open to legal challenge, that shining examples of control measures were tarnished, and that the Bill had "killed off all interest" in building homes to rent.

Ruth Gilbert, national campaigns chair for tenants' union Living Rent, said: "Scotland’s housing crisis has never been more glaring and urgent. 

"High private sector rents are forcing people into homelessness at greater levels than before. Over the last decade the private sector has doubled, and rents have risen by 79% in Edinburgh and 86% in Glasgow, pricing people out of their homes and communities.

"Strong, effective rent controls are a crucial part of the solution to Scotland's housing emergency. Done well, they would bring down the price of rent, increase housing quality, and ensure people aren’t forced out of their homes by rising rents."

Mr McLennan, Housing Minister, said: "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."