Scottish Land & Estates has urged the Scottish Government to prioritise increasing housing supply in rural areas, warning that the current focus on rent controls could exacerbate the housing crisis.

The organisation made these points during its evidence session to the Scottish Parliament's Local Government, Housing and Planning Committee on the Housing (Scotland) Bill.

"By focusing on the symptoms of high rents rather than the cause – a lack of supply – the government is taking the wrong approach," said Cameron Gillies, Public Affairs Manager at Scottish Land & Estates. "Recent figures from the Landlord Register reveal a decrease in private rented sector (PRS) properties in rural Scotland, including a 7.5% drop in the Highland region and a 4.5% decline in Dumfries & Galloway."

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Gillies emphasised that the Bill, in its current form, risks deterring investment in new housing stock.

While acknowledging the recent adjustment to the proposed rent cap, SLE maintains that further exemptions for rural housing providers are necessary.

"Maintenance costs for landlords in rural areas are generally higher than they are in urban areas, whilst rental income is usually lower," Gillies explained. "The Scottish Government is seeking significant investment in private rented property, particularly when it comes to meeting tough energy efficiency standards. There needs to be the ability for a landlord to recover the cost of investment, and these costs are higher in rural areas."

SLE believes that increasing housing supply is crucial to addressing the rural housing crisis and that policies should focus on encouraging investment and making it easier to build new homes.