On Tuesday, MSPs will consider amendments to the Housing (Scotland) Bill, with a final vote on the legislation tabled for Wednesday.
Living Rent held a rally outside of Holyrood on Monday, urging MSPs to go further.
The bill would allow councils to impose rent controls – capping increases at the rate of inflation plus one percentage point – but Housing Secretary Mairi McAllan announced earlier this month that mid-market rent and build-to-let homes would be exempted from the caps over fears it could suppress housebuilding.
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Speaking before the rally, the union’s national campaign chair Ruth Gilbert said rent controls were a “vital step forward” but that the proposals “are not strong enough”.
“This bill has been gutted of its vision and potential and this government has totally conceded to the demands of landlords, watering down rent controls at every step of the way,” she said.
“With the exemptions suggested, this government will create a two-tier system of rent controls that will leave huge portions of the private sector without recourse to challenge rent hikes.
“This bill also commits to above inflation rent increases.
“This will ensure that tenants continue to face yearly unaffordable rent increases when for most, the rent is already exacerbating poverty.”
Gilbert said the “double whammy” of exemptions and above inflation rent increases shows the Scottish Government is “prioritising the profits of landlords and developers over tenants’ right to affordable homes”.
“In the middle of a housing emergency, this is nothing short of a disgrace,” she added. “Without strong rent controls, the Housing Bill will do little to ease existing inequalities and lower child poverty.
“We thought the Scottish Government was committed to a fairer society. Increasingly, all tenants see is their commitment to protecting the profits of the powerful.”
Responding to the comments, the Housing Secretary said: “Scotland already has some of the strongest tenants’ rights in the UK and we are building on this in the Housing (Scotland) Bill through delivering rent control, strengthening protections in relation to evictions, supporting those who are experiencing domestic abuse, giving tenants new rights in respect of keeping pets and making changes that will help a rented property feel like a home.
“Plus, it will also create a gold standard of homelessness prevention system.
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“The Housing Bill also enables us to implement ‘Awaab’s Law’ in Scotland, which will ensure no family in Scotland has to rent an unsafe home with damp and mould.
“It is also vital that we prioritise expanding housing stock in Scotland. A robust supply of homes is fundamental to improving both availability and affordability across Scotland.
“That is why a few weeks ago I published the housing emergency action plan which was backed by nearly £5 billion of investment in a major affordable housebuilding programme.”
We told how McAllan pledged almost £5 billion over the next five years to build 36,000 affordable homes as part of an emergency action plan.
