To ask the Scottish Government what its response is to reported figures showing that average rents increased at a higher rate in Scotland than any other region or nation in the United Kingdom between September 2022 and March 2024. (S6T-02000)

The statistics for Scotland are based predominantly on newly advertised rents and do not take into account in-tenancy rent increases, which were initially frozen and then largely kept at 3 per cent while emergency legislation was in place. They do not represent the whole private rented sector in Scotland, so they are not suitable for like-for-like comparisons with other parts of the United Kingdom.

The Housing (Scotland) Bill includes a package of reforms to improve affordability and strengthen tenants’ rights. We will continue to work with stakeholders across the sector as we develop a system of rent control that works for Scotland.

What is more important than the words, which are similar to what the Minister put out in his press release at the weekend, is looking at what is happening on the ground. Scottish Conservatives warned ministers that the only outcome of the Scottish National Party and Green Party Government’s approach to rent controls would be higher rents and a loss of supply, both of which are now becoming apparent. Does the minister accept that rent controls have been a disaster for tenants, by decimating the housing market, and that they are pushing up rents in Scotland?

There are a couple of things to put that into context. As stated by the Office for National Statistics, Scotland’s rent data and statistics are mainly for advertised new rents, which is important. The ONS advises users to bear that in mind when interpreting estimates for Scotland and comparing them with other UK countries. It goes on to say:

“the lack of data on existing tenants benefitting from rent controls, and changes to the Rent Adjudication system, will lead to over-estimation in stock prices and indices for Scotland since late 2022.”

That is important context to add.

The other important thing is that the latest figures on the number of tenancies on the landlord register show an increase of 2.1 per cent between August 2022 and April 2024. We will continue to engage on the issue with stakeholders, and with Mr Briggs, through the Housing (Scotland) Bill.

Last week, the Government declared a housing emergency. Many in the sector welcomed that and have been expressing concern for some time that the SNP’s Housing (Scotland) Bill will only make matters worse. The rent-setting provision in the bill will only prevent investment, which the Minister has said he is keen to secure in Scotland. Will the Scottish Government honestly look towards a more flexible rent regulation approach than the one that the bill outlines?

As the member knows, I have met stakeholders, including investors, on a number of occasions to discuss that. There is always a balance to be found between protecting people in the most vulnerable areas under rent controls and encouraging investment in the sector. As I said, we continue to meet stakeholders as part of the bill process.

Does the Minister agree that the UK Government’s backtracking on even the most basic reforms to the private rented sector proves that, without a doubt, Scotland is the best place in the UK to rent in, with stronger tenants’ rights and a commitment, through the upcoming bill, to fairer, more affordable housing for all?

Yes. With robust tenants’ rights and an unwavering commitment to fairer, more affordable housing for all in the forthcoming Housing (Scotland) Bill, Scotland is setting high standards. In these challenging times, it is essential that we concentrate our efforts on supporting the most vulnerable people in society. That is the balance that I talked about earlier.

Our shared objective is to provide safe, affordable and high-quality homes for all. A well-regulated private rented sector benefits everyone who is involved—tenants, landlords and investors alike. That is not a novel concept. Our European neighbours have proven that a strong regulatory framework is compatible with a sizeable private rented sector. We will strive to emulate and surpass those successful models to ensure the best possible outcomes for all stakeholders in the housing sector.

I refer members to my entry in the register of members’ interests, which shows that I ceased being a private landlord last summer.

The huge rent increases are a symptom of the housing emergency that Parliament and Government acknowledged last week. When does the Government expect to formally respond to that declaration and bring forward actions to lift the country out of the housing emergency that we are experiencing?

I again come back to the context that the Office for National Statistics set out for the figures. As Mr Briggs and Mr Griffin know, I was keen to discuss the bill and the housing emergency. I engaged with stakeholders on that very recently, at the weekend, and we discussed the best way to take that forward. I am happy to discuss that with the member, as I indicated.

Here we are again. The Office for National Statistics repeatedly warned that the statistics cannot be compared like for like, and those who lobby for landlord profits and against tenant interests repeatedly show that they do not care about the reality. Given that between-tenancy rent increases are too high, does the Minister agree that it would be utterly perverse to use that as a justification to remove protection from those between-tenancy increases from the rent control proposals in the Housing (Scotland) Bill?

I agree with Mr Harvie on the ONS statistics, and it is really important to set out that context, as has been mentioned here before.

On the wider Housing (Scotland) Bill discussions, we continue to engage with stakeholders on achieving the balance that I mentioned previously.

Daniel Johnson has a brief supplementary question.

I am sure that the Minister agrees that the key to solving the housing emergency is boosting investment and supply. Given that the sector is clear that the lack of clarity in the Housing (Scotland) Bill is a concern, is the Government considering a national formula for rent regulation to provide the consistency and clarity that the sector is asking for?

As Mr Johnson knows, I have met investors on a number of occasions. I have also met the likes of Living Rent to discuss its concerns.

The Housing (Scotland) Bill provisions have been published, and we are looking to engage with stakeholders on the particular point that Mr Johnson mentioned. We will listen to investors and we will continue to listen to the likes of Living Rent to try to achieve the balance that I mentioned previously.