Landlords could be banned from selling their properties to the highest bidder under plans unveiled by the Scottish National Party (SNP) ahead of the election.
John Swinney, the First Minister, pledged to introduce new laws that would give private renters “a period of first refusal” if their homes come up for sale, which would prevent landlords from freely selling their properties on the open market.
Landlords would be forced to first offer their properties to their tenants “at a fair market price” if they put them up for sale, the SNP leader said.
However, Mr Swinney did not explain how that price would be decided or by whom.
Properties in areas such as Edinburgh are commonly sold for tens of thousands of pounds above their home report valuation. If that valuation were used as the basis for the new laws, landlords could lose a significant amount compared with selling on the open market.
The Holyrood election pledge is the latest in a series of SNP policies that have targeted landlords, including controversial rent controls.
Those controls backfired when they resulted in higher rent increases in Scotland than in England after landlords withdrew their properties from the market. They were also blamed for a collapse in the number of buy-to-rent homes being built north of the border.
However, the latest plan appears likely to become law, as polls predict a clear lead for the SNP in the Holyrood election race.
Speaking before a campaign stop in Inverness on Friday, Mr Swinney said people were “stuck paying more on rent than they would on a mortgage”, which, added to rising costs, made it impossible to save for a deposit.
He said: “That is made all the more difficult when private renters find themselves having to leave their home because the owner has decided to sell up. As well as forcing people to upend their whole lives, it also has serious financial implications.
“That is why I will give renters the right to first refusal on the home they live in – at a fair market rate – if the owner of the property decides to sell.”
Critics said the policy would make Scotland’s housing emergency worse by deterring landlords from entering the rental market and driving up rents. Others warned that it raised serious questions about the right to sell a property freely.
David Alexander, chief executive of DJ Alexander, part of Scotland’s largest lettings and estate agents, said: “What this would mean in practical terms is completely uncertain. Who would determine fair value if not the marketplace? Why would anyone invest in the private rented sector?
“This would leave the Scottish Government having to provide homes for hundreds of thousands more people at a time when waiting lists for social housing are at record levels.”
