The Scottish Government has insisted they still support rent controls, as speculation mounts that they could be about to water down the Housing Bill.

The promise from Housing Minister Paul McLennan came in response to an open letter to the First Minister, organised by Living Rent and signed by Scottish trade unions, urging the SNP administration to “reaffirm their commitment” to the legislation.

The signatories - who include the leaders of Unison, Unite, the GMB, RMT, UCU, PCS, Aslef and NUS -  say that if the government is serious about tackling the country's housing emergency then "robust rent controls need to be part of the solution."

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Caps on rent were first introduced by the Scottish Parliament in 2022 in response to the post-pandemic cost of living crisis.

It meant that private landlords could only increase rent for tenants by 3% a year although larger hikes could be put in place between tenancies.

The law initially applied until the end of March 2023 but was extended by the Scottish Government until March 31 this year.

Earlier this year, ministers introduced the Housing Bill, which includes new proposals for long-term rent controls for private tenancies.

It would also introduce rent control zones which would see councils assess and send details of rent prices and increases to the Scottish Government, which would have the power to put controls in place.

The legislation was a key plank of the Bute House Agreement with the Scottish Greens.

There has been speculation that since the collapse of the power-sharing agreement last month, and the subsequent change in First Minister, the government might now row back on some of the proposals.

The prospect of tighter regulation has been opposed by landlords, housebuilders and others in the sector. 

Last month, architect Paul Stallan, of Stallan-Brand, told The Herald the policy was "disastrous" and had "redirected billions in build-to-rent development away from Scotland."

The Scottish Property Federation claims that as much as £3.2 billion of investment is at risk because of uncertainty around rent controls.

Statistics published by the Scottish Government last November revealed that between 2010 and 2023, rents across Scotland have increased by an average of 51.6%.

In some local authorities, increases are even sharper. In Lothian, rent increased 79.3%, and in Greater Glasgow, rent increased 86.2%.

Over 2023 new rents across Scotland increased by 14.3% to an average of £841 per month.

In Greater Glasgow, rents rose by 22.3% to an average £1050 per month, in Lothian, rents rose by 18.4% to an average £1192.

Living Rent’s National Campaign’s Officer, Ruth Gilbert said: “Tenants need rent controls. Decades of poor regulation and a reliance on the free market has seen landlords hike up rents to eye-watering prices.

“Meanwhile our wages have stagnated and the cost of living overall has pushed people further into poverty.

“Current regulation is simply not strong enough. Every day landlords are hiking up already unaffordable rents. They cannot be trusted to regulate themselves.”

STUC General Secretary, Roz Foyer, added:“The Scottish Government may have declared a housing emergency, but if that is to mean more than words, then it is absolutely crucial that it comes with both investment in social housing and regulation of rents.”

“Housing is a human right and rather than bow to pressure from landlords, the Scottish Government must implement a proper system of rent controls.”

Responding to the letter, Housing Minister Paul McLennan told The Herald: “The Scottish Government is committed to introducing rent controls and the Housing Bill will ensure we can deliver important reforms to the rented sector.

“We recognise that a fairer, well-managed private rented sector is in the interest of both tenants and responsible landlords.

“We will continue to work with tenants, landlords and investors as the Bill progresses through Parliament to ensure the measures will support our vision for improving the supply and affordability of high-quality rented housing in Scotland.”