The chief executive of a major Scottish housebuilder has urged First Minister Humza Yousaf to scrap SNP and Green homes laws in the wake of the Bute House alliance collapse.

The homes builder revealed that it saw a major deal collapse on the day the Scottish Government introduced rent controls, while it is now estimated £3 billion in wider built to rent investment is put at risk by formalising the policy.

Innes Smith of Elgin-based, London-listed Springfield Properties’ story is not rare - there are many across Scotland – but it is a stark indictment and his solution is equally clear: “Withdraw the Housing Bill.”

He told The Herald: “The day the Scottish Government announced a rent freeze we immediately saw a deal to deliver 300 quality, energy efficient PRS (Private Rented Sector) houses collapse, and this investment has been lost.

“These homes were designed for families seeking homes to rent sustainably and would have eased pressure in areas of high housing demand including Inverness and Midlothian.

“This was planned as the first of many deals using private investment to enable an increase in housebuilding across multiple tenures.”

The Herald: 'Whilst introduced with good intentions, the intervention has had unintended consequences with private rents across Scotland soaring upon relet and investors exiting to redirect funds elsewhere,' said Innes Smith'Whilst introduced with good intentions, the intervention has had unintended consequences with private rents across Scotland soaring upon relet and investors exiting to redirect funds elsewhere,' said Innes Smith (Image: Springfield Properties)

Mr Smith also said: "Whilst introduced with good intentions, the intervention has had unintended consequences with private rents across Scotland soaring upon relet and investors exiting to redirect funds elsewhere.

"Evidence shows that following the introduction of the freeze and subsequent rent cap, rent increases in Scotland were by far the highest across the UK.

"The SNP now has the opportunity to listen to the business community and react to the evidence to attract lost investment for housing back into Scotland."

Read more by Brian Donnelly:

Scotland's home builders call for pause in new net zero laws

Rental housebuilding market 'closed' by SNP, Green homes law

SNP, Green homes Bill ‘will worsen housing crisis’ 

The Scottish Property Federation, the real estate industry body, said that "the market needs clarity and a pragmatic policy framework on rent controls".

Maria Francké, SPF chair, also said: "Unless we see the current rent controls proposals amended, we are in danger of Scotland losing up to £3bn of build to rent led investment."

Mr Yousaf made housing in Scotland his first policy announcement since he cancelled the SNP and Green government alliance, but the £80m to buy property for conversion was dismissed.

Sally Thomas, Scottish Federation of Housing Associations’ chief executive, responded that "with freefall in supply, this funding announcement pales in comparison to what we’ve lost and unfortunately represents little more than a sticking plaster during a national housing emergency".

Fionna Kell, of representative body Homes for Scotland, said it is calling for a "comprehensive and holistic policy review".

A Scottish Government spokesperson said: "A fairer, well-managed private rented sector is in the interest of both tenants and responsible landlords.

"Our Housing Bill includes a package of important reforms to the rented sector that aim to improve affordability and strengthen tenants’ rights. This includes the introduction of an effective system of rent controls in the private rent sector, which will improve affordability for tenants while recognising the importance of landlords investing in property quality.

"We will continue to work with stakeholders across tenants, landlords and investors as we develop a system of rent control that works for Scotland."

There had been alarm among many in the business community about the impact of the power-sharing deal on the Scottish economy, business correspondent Kristy Dorsey reported on the day the joint administration collapsed.

She writes that the agreement "included 10 areas where the Greens and the SNP could continue to differ on policy" and one was "the economic principles related to concepts of sustainable growth ... "

Also this week, business editor Ian McConnell sat down with Alessandro Dudech, UK chief operating officer of Japanese giant UNIQLO ahead of the launch of its first Scottish store for an exclusive interview. The retail chief reveals that "it is really a moment where we get to make a first impression".

In another exclusive, this time from deputy editor Scott Wright, Al Denholm, the new chief of the Scottish National Investment Bank insists the state-backed institution is "not broken".