Scottish Land & Estates (SLE) has urged the Scottish Government to focus on increasing housing supply in rural areas rather than implementing rent controls.

The organisation expressed concerns about the Housing (Scotland) Bill, arguing that it prioritizes rent control measures over solutions that address the root cause of the housing crisis.

SLE believes that increasing the supply of rural housing is essential to meeting the needs of both residents and businesses. The group suggests that focusing on planning regulations, infrastructure investment, and incentivising development could be more effective in tackling the housing shortage.

Anna Gardiner, Policy Adviser (Rural Property) at SLE, said: "Scotland is facing a housing emergency, but this Bill focuses on rent controls instead of tackling the root issue: a lack of homes.

"Evidence shows that rent controls can exacerbate supply issues and even drive rents up. This legislation risks disenfranchising private landlords and stifling investment in the very housing stock we so desperately need.

"In rural Scotland, housing isn't just a place to live; it's a cornerstone of community viability. Applying a rural impact assessment to this Bill could ensure that it enhances the rural rented sector rather than inadvertently causing harm. Rural housing providers already face higher maintenance costs and lower rental incomes. Without the ability to reset rents to market levels between tenancies, many will be forced out of the market, worsening the housing shortage.

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"Housing providers need certainty to invest. While we welcomed initial proposals from the Housing Minister to clarify rent increase mechanisms in controlled areas, the Bill still leaves too many questions unanswered. This creates uncertainty for landlords, further discouraging investment in new housing stock."

Recent data from the Landlord Register highlights a decline in private rented sector (PRS) properties across rural Scotland, with reductions of 7.5% in Highland and 4.5% in Dumfries & Galloway. The trend, combined with anecdotal evidence from SLE members, underscores the urgent need for policies that boost housing supply rather than discourage investment.

Anna continued: "Housing operates as a delicate ecosystem. Policies that restrict one area, like rental prices, must be counterbalanced by measures to boost supply. Unfortunately, this Bill focuses narrowly on regulation without addressing the systemic challenges we face, such as slow planning processes, infrastructure gaps, and a skills shortage in the construction sector.

"The decline in PRS properties reflects the impact of recent and proposed legislation, which is driving landlords out of the sector. This is especially alarming in rural areas, where PRS properties play a vital role in supporting local economies and communities. The Scottish Government must prioritise policies that encourage landlords to remain in the sector and invest in new housing.

"Scotland doesn't need more regulation—it needs more homes. We urge the Scottish Government to revise this Bill and deliver policies that genuinely address the housing crisis. By supporting rural housing providers and boosting supply, we can create a fairer and more sustainable housing system for everyone."