Market Update – The Scottish Housing Bill

Information, Market Update

The Housing Bill propsal

The Scottish Government has proposed the introduction of permanent rent controls through the Housing (Scotland) Bill, aiming to establish rent control areas where rents can be capped, regardless of landlord costs. This move has ignited debates, with concerns from landlords about its impact on property investments, while tenant advocacy groups argue it may not go far enough in protecting tenants from steep rent increases. The legislation mandates local councils to assess the rental sector and recommend the implementation of rent controls, potentially leading to varied impacts across different areas. It also introduces measures to consider the timing of eviction notices, aiming to minimize tenant stress.

Investors should be aware of the potential for localized rent controls and the implications for rental income and property values. The transitional period before the full implementation of the bill could see tenants facing significant rent increases, suggesting a volatile rental market in the short term.

Elleah Property Finance is strategically positioned to guide investors through these changes. Our expertise in bridge finance, specialist mortgages, and development finance, combined with our deep understanding of the evolving regulatory landscape, ensures our clients are well-equipped to navigate this new terrain successfully.

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