Angela Rayner gets it – but will the Scottish government listen?

The new Housing Secretary’s comments suggest that the Burnham administration has a grasp of the issues facing the sector, writes ​​David J Alexander.

Ms Rayner went on say that the PRS needs a period to settle down following the introduction of the Renters’ Rights Act and that the new provision for tribunals to appeal rent rises and end bidding wars for properties is already producing fairer rents for tenants.

She said: “More regulation of the private rented sector can now only be effectively introduced when either the sector sees growth, or if the government invests significantly in the provision of social and council housing.”

This is precisely what the private rented sector has been saying for years yet the message never seemed to be heard. Indeed, the Labour party continues to have advocates for rent control, not least in London, with Mayor Sadiq Khan.

But it is refreshing and positive that the new Labour government is not sitting on the fence but has clearly indicated that this would not be an effective policy without growth in the sector or the provision of a greater volume of social housing.

This is the correct approach and indicates a government which understands the market, is willing to work with the private sector to encourage growth and appreciates that wider housing shortages will only be resolved if the government works with the PRS, social housing, and housebuilders.

This is a significant moment of good sense and forward thinking and allows for landlords and private investors to plan for greater investment in the immediate future.

Of course, this only applies in England and similar thinking and openness in Scotland would be welcome. Indeed, it is long overdue. The data on rent rises coinciding with the rent controls introduced in September 2022 by the Scottish government confirms that Ms Rayner has correctly understood that capping rents reduces supply and results in higher costs for tenants. The only way to resolve this in the long term is to increase supply to meet demand. The market in Scotland has already partially resolved itself as annual rent rises are now at a ten-year low following the ending of the rent cap in March 2025.

What this tells us is that there would be greater benefit for tenants and for landlords if the Scottish government emulated the new Westminster government and made clear, sensible statements that rent controls are not the answer for the immediate and long-term future of the private rented sector.

What is required is a coordinated approach involving the PRS, social housing and housebuilders which allows more homes to be built, greater private sector investment in the rental market and a coherent and properly funded plan to expand social housing provision over the next ten years. On first sight the Burnham government seems to be making the right noises on resolving the housing emergency. We must hope that the Scottish government is listening.