Scotland plans rent controls to curb soaring rents, protect tenants and ease housing crisis

Scotland is moving to empower ministers to designate rent control areas where landlords’ ability to raise rents will be curbed with a maximum price control tied to inflation (CPI + 1 %, up to 6 %), aiming to ease affordability pressures for private tenants and reduce a rental shortage driven by high demand and rising homelessness. The government says this will stabilise the housing market and shield renters from sharp annual increases that exceed incomes. However, critics warn that such price controls can distort incentives, potentially depressing investment and worsening supply if landlords exit the market or new building slows. The policy reflects a balancing act between protecting tenants and maintaining incentives for housing supply.

Rent controls are coming to the UK - but they're not a guaranteed win for tenants - BBC News

1. What market failures are Scotland’s planned rent controls trying to address?

2. Analyse how introducing rent controls in Scotland might affect both the private rental market and the owner-occupied housing market.

3. Discuss the potential benefits of introducing rent controls in Scotland.