With the Scottish parliamentary elections imminent, tenant group Living Rent has launched a manifesto calling for significant changes to the housing sector, including the abolition of Scotland’s private rented sector (PRS). Their proposals have sparked debate amid concerns over rent controls and the future role of landlords in the housing market.

Living Rent’s Vision for Housing

Living Rent’s 2026 Holyrood manifesto sets out a bold agenda aimed at reshaping Scotland’s housing landscape. Central to their demands is the establishment of universal public housing, owned collectively and built to a liveable standard prioritising tenant needs. The group argues that current social and council housing fall short of these standards and supports expanding these sectors in the short term.

However, their longer-term goal is to abolish the private rented sector entirely. To achieve this, the manifesto calls for government commitment to reducing the size of the PRS over the next parliamentary term. This would involve increased use of Compulsory Purchase Orders (CPOs), empowering local authorities and housing associations to acquire private properties from landlords.

Additionally, Living Rent seeks a ban on landlords serving as elected representatives at both local and national government levels, reflecting their view on the influence landlords should have in policymaking.

Rent Controls and Market Impact

The Scottish Housing Act requires councils to assess local rent conditions and propose rent control zones to the Scottish government by 31 May 2027. In these designated areas, annual rent increases will be capped at Consumer Prices Index (CPI) plus 1%, with a maximum limit of 6%. Certain tenures, such as mid-market rent and build-to-rent schemes, are exempt from these controls.

Living Rent argues for a more comprehensive system of rent controls that applies across all tenures and systematically reduces rents over time. However, evidence from the Institute of Economic Affairs (IEA) and data from Hamptons suggest that rent controls can have unintended consequences. While they may initially lower rents for existing tenants, they often lead to higher rents in uncontrolled sectors and reduce the overall supply and quality of housing.

In Scotland, rent caps have coincided with an 11.6% increase in rents, with landlords reportedly raising rents faster than anywhere else in Great Britain. This suggests that rent controls may be reshaping the market in ways that are detrimental to both landlords and tenants.

Landlords’ Role in the Housing Debate

The Scottish Association of Landlords (SAL) acknowledges that landlords may not be a strong political constituency, but emphasises the importance of recognising their role in the housing system. A spokesperson told Property118: “Landlords don’t win votes for politicians, and that’s an important message we need to get across. They’re not suddenly going to think they need to support landlords hand over fist.”

He added: “Politicians are obviously thinking about the wider community, they are concerned about tenants, about whether tenants can afford to pay their rent and whether they have good homes to live in. What I’m trying to say to politicians is that we both want the same thing. We want our tenants to be happy, we want them to stay in their properties, and we want them to be able to afford to live in them.”

What this means for landlords

The proposals from Living Rent, if adopted, could significantly alter the landscape for landlords in Scotland. The push to reduce the private rented sector through compulsory purchase and the call to ban landlords from elected office signal a challenging environment for property owners. Furthermore, the expansion of rent controls may restrict landlords’ ability to manage rental income effectively, potentially impacting investment and maintenance decisions.

Landlords should prepare for ongoing political and regulatory scrutiny, particularly as the new government develops its housing strategy. Engagement with policymakers and clear communication about the role landlords play in providing quality homes will be essential in shaping balanced housing policies.

Source: Based on reporting from Property118

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