SLE, whose members provide around 13,000 affordable homes for rent in rural areas, warns that measures which reduce the supply of housing will disproportionately damage the rural economy.

More than 600 amendments are due to be considered by MSPs, thought to be the highest number proposed for any Bill since the creation of the Scottish Parliament in 1999.

Anna Gardiner, policy adviser (rural property) for SLE, said: “The Scottish Government, through its housing consultation, has listened to the concerns of rural businesses and we are encouraged by the progress that has been made. This committee session is a huge opportunity to ensure that the legislation is workable and protects the supply of housing in rural areas. MSPs must reject the raft of amendments proposed by those who simply don’t understand the fundamental drivers of housing supply”.

The Bill proposes a rent cap of inflation plus 1%, up to a maximum increase of 6% for all rental properties in the private sector.  A consultation is currently underway, considering whether exemptions to the rent controls should be made in certain circumstances. The exemptions may include housing built specifically for the rental sector and rental property that has been let at below market rates, which may include a significant proportion of rural rental homes.

Recent figures from the Landlord Register reveal a decrease in private rented sector properties in rural Scotland, including a 7.5% drop in the Highland region and a 4.5% decline in Dumfries & Galloway.

Evidence submitted to the Scottish Government by SLE demonstrates that the supply of rural housing is most likely to be detrimentally impacted by rent controls, as the cost of maintaining rural properties is often higher, compared with urban areas, while the rental fees charged for rural properties are generally lower and have risen at a lower rate than many urban areas. This cost barrier acts as a major disincentive for those wishing to provide homes to let in rural areas.

Properties removed from the rental sector and put up for sale are rarely affordable for those who need to rent, SLE reports. In rural areas, such housing is often bought by second homeowners or retirees, pricing out the workers and young families desperately needed to sustain rural communities. 

Anna Gardiner, policy adviser (rural property) for SLE, said: “The shortage of suitable housing makes recruitment and retention of employees harder for rural businesses and therefore constrains economic growth.  We have worked closely with the Scottish government over the past two years to voice the concerns of rural businesses.

“Many homes in the countryside are off-grid and the cost of providing essential services such as a private water supply, electricity supply and road maintenance is borne by the property owner, not the tenant. We are pleased that the Scottish Government has taken this point on board and hope to see appropriate provisions incorporated into the Bill.

“Supporting the provision and expansion of rental homes is a common-sense approach which will boost the supply of rural housing and pay dividends for the Scottish economy.”