Senior industry figures launched a collective broadside at the Scottish Government’s housing law plans, aspects of which they claim may be open to potential legal challenge.

The group of eight industry representatives and company operators cited one area of the proposed new Housing (Scotland) Bill that “could carry with it legal implications”, amid the volley.

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, 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".

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The umbrella group set up in response to the SNP’s planned new housing law has warned some aspects of the proposals could face a "potential legal challenge".

The group that said it "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 Bill, which is currently under consultation.

The Herald revealed also that More Homes More Quickly has written to Paul McLennan, Housing Minister, to put forward alternative rent control options.

The 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."

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The signatories also 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."

The group of influential housing industry figures also wrote a separate strongly-worded complaint over the SNP Government’s handling of its new homes law consultation.

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

Mr McLennan told The Herald: "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 in the special series: "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."

This article appears in Business HQ Monthly