Rent Controls in Scotland: Urgent Solution or Risky Gamble?

Debate Over Rent Controls Intensifies as Unions Call for Immediate Action

Scotland’s housing debate is heating up once again, as a powerful coalition of trade unions and activist groups have called on the Scottish Government to take bold, immediate action to introduce universal rent controls—without exemptions.

In an open letter addressed to First Minister John Swinney and senior ministers, organisations including the STUC, UNISON, Unite Scotland, RMT, UCU, and others argue that tenants are being pushed to breaking point by skyrocketing rents and a lack of housing affordability.

Scotland needs more housing, and amenities

The Case from Unions and Tenant Advocates

The signatories argue that Scotland is deep in a housing emergency, with working-class families suffering the most. They claim that without firm, universal rent controls, Scotland will see rising poverty, a surge in evictions, and spiralling public costs for temporary accommodation.

Their demands include:

• Permanent rent controls with no exemptions for specific property types like mid-market or build-to-rent housing.

• A ban on landlords using basic property improvements as justification for rent increases.

• Transparent definitions around rent categories.

• Equal representation for tenants in ongoing government consultations.

The letter claims that current proposals under review could create a “two-tier” system, where some properties are exempt from rent caps, leaving many tenants behind and weakening the effectiveness of the policy.

But Is Rent Control the Right Solution?

While these concerns are real and valid—especially amid rising living costs—rent controls remain a highly controversial policy with many economists, housing experts, and landlords warning of unintended consequences.

Here are some of the key arguments against sweeping rent controls:

1. Reduced Supply of Rental Properties

If landlords feel their returns are capped unfairly or their ability to cover costs is restricted, many may exit the market. Fewer rental homes mean less choice for tenants—and potentially higher rents in the long term.

2. Disincentive to Invest

Rent controls can discourage investment in property maintenance and upgrades. If landlords aren’t allowed to reflect the cost of improvements in rent, there’s little incentive to maintain high standards—risking poorer conditions for tenants.

3. Impact on New Developments

Scotland has attracted significant investment into purpose-built rental housing in recent years. But if developers perceive the country as unfriendly to investment due to strict rent controls, new housing projects could dry up, worsening the supply crunch.

4. Unintended Market Distortions

History shows that rigid rent caps can lead to landlords increasing rents dramatically between tenancies or shifting properties to the short-term or holiday let market. This could reduce long-term housing availability even further.

A Need for Balance

Scotland’s housing crisis is complex and multifaceted. While affordability must be addressed, especially in cities like Edinburgh and Glasgow, effective solutions must balance tenant protection with landlord confidence and housing supply.

Rent controls may help in the short term, but if applied without flexibility or foresight, they could do more harm than good. The Scottish Government’s current consultation offers an opportunity to shape a policy that works for everyone—but only if it includes all voices: tenants, landlords, developers, and housing professionals alike.

Final Thoughts

There’s no doubt that action is needed to make housing fairer and more affordable across Scotland. But it’s crucial that policy decisions are grounded in long-term thinking—not just political pressure.

We’ll be watching closely as this debate develops. If you’re a landlord or tenant with views on rent controls, now is the time to engage with the consultation process and help shape the future of Scotland’s rental market.

📢 Calling All Landlords: Make Your Voice Heard

If you’re a landlord in Scotland—whether you own one property or manage a growing portfolio—now is the time to engage with the Government’s consultation on rent controls. Your input can help shape a fair, workable system that protects tenants without dismantling the viability of the rental sector.

At The Letting Experts, we believe in fairness, transparency, and open dialogue. If you’d like to talk through how rent control proposals could affect your property or investment plans, we’re here to help.

➡️ Contact us today for advice, portfolio reviews, or to make your views known through the official consultation.