Rents (Private Sector)

– in the Scottish Parliament at on 26 November 2014.

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Photo of Drew Smith Drew Smith Labour

2. To ask the Scottish Government what action it is taking to tackle high rents in the private sector. (S4O-03742)

Photo of Margaret Burgess Margaret Burgess Scottish National Party

Rents in the private sector reflect conditions in local housing markets, and rent levels vary widely across Scotland. Where rents are high, the answer is to build more houses, and we have taken decisive action on that. We have boosted housing supply budgets by investing £1.7 billion in affordable housing over this parliamentary session and, only this month, we announced a £200 million increase in funding to stimulate Scotland’s housing industry. We are also working with Homes for Scotland to attract new sources of investment to build more homes for private rent.

Photo of Drew Smith Drew Smith Labour

Nearly half of lets in the private sector are occupied by families and one in four of the poorest people have to rent privately. At the same time, we have seen rent rises in some areas of 40 per cent in just four years, meaning that many Scots are paying half their monthly pay packet in rent alone.

What reassurance can private renters in my area have that the Government understands their predicament, particularly if there are no substantial proposals for action in this afternoon’s legislative programme and given that the Minister previously failed to back rent reform when Scottish Labour proposed it?

Photo of Margaret Burgess Margaret Burgess Scottish National Party

As I said in my original answer, rent levels differ across Scotland, but the average rent increases over the past four years—including those in the member’s Glasgow region—have been less than the inflation increase. That applies across most of Scotland. We are aware that rent levels in some hot spots, such as those in Aberdeen and in parts of Edinburgh, are rising at a higher rate than inflation, and we are looking at that. We committed to looking at that issue and we are consulting on it. We are exploring rent levels as part of our consultation on reviewing the private sector tenancy.

I remind the member that Labour proposed rent reform at a very late stage of the Housing (Scotland) Bill. Labour did not introduce the idea early in the bill process. Rent reform was not mentioned until, lo and behold, Labour was allowed to mention it because Ed Miliband mentioned it in London. Not until then was it mentioned by Labour. [Interruption.]

The Deputy Presiding Officer:

Order.

Photo of Margaret Burgess Margaret Burgess Scottish National Party

We had already made a commitment to review the private sector tenancy regime and rent levels and we stuck to that commitment.

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