This is an insulting and misleading portrayal of private landlords. It ignores the realities of Scotland’s housing market and the economic pressures at play, many of which have been caused by rent controls.
Rather than focusing on increasing supply, Chapman and others continue to push for stricter rent controls, despite overwhelming evidence they ultimately harm the very people they intend to help.
Interest rates rose sharply in 2023, affecting homeowners across the UK. Under the government’s rent control measures, many landlords have been unable to adjust rents in line with these rising costs.
Do rent-control advocates really believe that, while homeowners must bear the burden of higher mortgage rates, landlords should absorb these costs on behalf of their tenants? Subsidised housing is for the state to provide, but it seems the Scottish government need private landlords to deliver this for them.
Landlords have no wish to set rents at unaffordable levels. They understand that long-term tenancies are in everyone’s best interest. However, rental income must cover mortgage payments, maintenance, insurance and general upkeep. If it doesn’t, landlords will be forced to exit the market, and they have been.
Rent controls don’t just reduce the number of homes, they discourage investment in improving existing stock. If a landlord’s rent doesn’t cover basic outlays, how can they be expected to fund upgrades.
The Scottish Government is placing pressure on landlords to meet higher energy efficiency standards and property conditions. Yet at the same time, their rent controls have made it financially unviable for many landlords to do this.
History has shown us that rent controls reduce the supply of rental homes. We only need to look at cities like Stockholm, San Francisco, and Berlin, where heavy-handed regulation led to dwindling rental stock, long waiting lists, and reports of black-market lettings. When landlords cannot see a return on their investment, they sell up.
If the price of wheat rises dramatically, the solution is not to force bakers to sell bread at a loss - it’s to grow more wheat. The same logic applies to housing.
Politicians who champion rent controls may think they are acting in the interests of renters, in order to win their votes, but in reality, they are making their situation worse. The very policies that claim to protect renters, ultimately price many out of the market.
Instead of demonising landlords, policymakers should be asking why so many have already left the market, and why no investors are entering it.
The lifting of the rent cap on April 1st is not a signal for landlords to “go rogue.” It is simply a long-overdue correction that allows rental values to reflect real-world economic conditions. The real danger lies in continuing down a path that ignores market realities and drives Scotland’s rental sector deeper into crisis.