Rent Caps To Be Tied To Inflation Under SNP Plan
Rent increases in Scotland could be tied to inflation under fresh proposals put forward by the Scottish government.
An amendment to the government's Housing Bill would see increases restricted to 1% over the Consumer Price Index, a measure of inflation, up to a maximum 6%.
The rules would only apply to properties in rent control areas, with a consultation due to begin in spring next year.
Housing Minister Paul McLennan said the announcement provides certainty for tenants and encourages investment.
The Scottish Greens - who were in government when the bill was lodged and played a key role in its creation - have criticised the size of the proposed caps.
The Housing Bill was lodged earlier this year, and the legislation allows ministers to create rent control zones following a recommendation from local councils.
McLennan said: "Setting out the cap in this way, with CPI as its basis, allows for a reflection of the costs of landlords to offering a property for rent, while offering protections to tenants in terms of limiting more significant rent increases.”
Caps will be in place between as well as throughout tenancies, in the selected zones, but McLennan said there will be exemptions to allow certain properties to avoid the restrictions.
A consultation will examine how exemptions should be applied, but the minister indicated in Holyrood that mid-market rent properties were one such option.