ARL response to latest Housing (Scotland) Bill
The ARL welcomes the recognition of the quality delivered by BTR, but expressed renewed opposition to rent caps of any kind.
In response to the Ministerial Statement on the Housing (Scotland) Bill today, 黑料网 for Rental Living (ARL) Chief Executive Officer Brendan Geraghty commented:
鈥淭he ARL welcomes the statement made today by the Scottish Minister for Housing Paul McLennan that recognised the need for certainty for investors and developers of purpose-built rental housing at scale, and the announcement of further consultation will take place about rent control for such homes.
鈥淗owever, the ARL opposes rent caps in any form. Such controls lower investor confidence and inhibit the ability to deliver customer, community and investor聽value. Institutional investors in Build to Rent (BTR) invest for the long term, this means that they are equally committed to creating sustained community value as they are to delivering investment value. Rent caps harm long term investment in both.聽
As the Minister reflected, investors require the certainty of stable returns to enable the substantial investment they can bring to deliver quality homes in Scotland.聽 If rent control is in play, it can disrupt and harm the certainty of those returns.
鈥淎 number of investors, which have successfully invested in BTR in Scotland, have put further schemes on hold or abandoned them altogether 鈥� around 拢2.5 billion of investment is now viewed as at risk. National and international research also highlights the negative impacts on supply due to strict rent restrictions.
鈥淭he ARL will continue to work with the Minister throughout the consultation in Spring 2025 to ensure clear understanding of the impact of rent controls on the investment and delivery of much-needed quality rental homes.鈥�