The Scottish Greens have criticised the Scottish Government for  ‘betraying tenants’ as they set out their planned measures for rent controls. 

Housing Minister Paul McLennan delivered a statement to parliament setting out proposals which would allow rents to be increased above inflation and by up to 6%, including in rent control areas. 

If approved, the rent cap will apply to rent increases both during the term of a tenancy and in between tenancies and will only apply in areas where rent control is applied.

The measures will be put into the Housing bill as an amendment. 

This Bill, which is currently making its way through parliament, was originally published by the Scottish Green Minister Patrick Harvie and followed an emergency rent freeze.

Mr McLennan said the new measures “provided further certainty to offer clarity on how rents are capped when rent control applies”. 

Scottish Greens MSP Maggie Chapman, however, said it was a “shameful betrayal of tenants” as it does not bring down the cost for those already struggling to afford rent. 

Ms Chapman said: “Stabilising rents at unaffordable levels is no use to anyone, apart from profiteering landlords. If the SNP goes ahead with these disastrous plans they will be selling-out renters and entrenching a broken and unfair system.  

“These proposals do not tackle unaffordability and would not give tenants in the private rented sector the security or stability they’ve been promised. 

“This is yet another example of an SNP government that is shedding its progressive credentials. I urge them to rethink their proposals and work with us to deliver a Housing Bill that transforms housing in Scotland and gives tenants the security, stability and peace of mind that everyone deserves.” 

Speaking in the chamber, Mr McLennan said the measures were necessary to ensure a “balanced approach” for both tenants and the property rights of landlords which also secures investment for private rented housing. 

The Housing Minister said: “Having considered how to best formulate the cap, the government will bring forward an amendment at stage two that will explicitly set out where a rent control area is designated. 

“The cap that will apply to rent increases while rent control is in force would be set at a level of CPI plus 1 % up to a maximum increase of 6%.

“This would mean that where a rent control area is in place, in most cases, rents would be able to increase by CPI plus 1% of the existing rent. Where the relevant CPI figure exceeded 5% then the increase permitted would be capped at 6% of the existing rent.” 

Mr McLennan added: “Bringing forward this amendment responds directly to calls for greater certainty and will offer more clarity to tenants, landlords and those who invest in and develop rented homes.” 

Living Rent welcomed the news rent controls will apply in between tenancies - a measure they said would help reduce evictions. However they said "baking in" above-inflation rent increases will weaken the rent control measures which aim to protect tenants from rising costs. 

Those who work in the rented sector also have concerns. Estate agents at Propertymark said that while the decision around above inflation rent increases signals a recognition of the "vital" role landlords and investors play, there is still work to be done to "strengthen" the Housing Bill in order to protect their rights. 

Timothy Douglas, Head of Policy and Campaigns at Propertymark: “The Bill, in its current form does nothing to address the demand for private rented property and the proposals for rent control areas, in terms of data collection, designation and reporting timescales are inconsistent.

“Furthermore, rent control measures between tenancies removes any incentive for landlords to invest or upgrade properties and the Scottish Government must reduce the tax burden on landlords to bring down the cost of renting for tenants.”

Following the housing minister's statement in the chamber, Scottish Conservative MSP Meghan Gallacher said this move does “nothing” to address the housing shortage crisis in Scotland or reassure housing developers and landlords. 

She added: “We need to build, build, build not cap, cap, cap.”

Her comments came after the  Chartered Institute of Housing Scotland and the Scottish Federation of Housing Associations urged the Scottish government to keep to its promise to prioritise affordable housing with the additional funding for Scotland announced in the UK Budget yesterday.

The Scottish government has promised to deliver 110,000 affordable homes by 2032, of which 77,000 will be for social rent and 10% will be in rural and island communities.

A consultation in Spring 2025 will seek views on how powers that allow exemption from rent controls or rent increases above the cap could be used by Scottish Ministers.