Rent caps will be tied to inflation under SNP plan

In selected areas, restrictions will apply between and across tenancies, but McLennan said there would be exemptions to allow some properties to avoid the restrictions.

The consultations will examine how the exemptions should be implemented, but the minister indicated at Holyrood that mid-market rental properties were one of those options.

Green MSP Maggie Chapman said her party did not believe the proposals would “solve the problem of rent unaffordability in many areas across the country”.

He added: “This does not provide the stability promised to tenants in the private rented sector.”

Chapman went on to ask the minister how caps fixed on the inflation rate make rent more affordable.

McLennan replied: “It is important to consider the long-term picture in the design of rent controls as rent increases can be above or below inflation.

“We think that allowing some inflation margin, such as 1%, as stated, will reassure investors that, in the long run, periods when growth is below inflation will be offset by periods when rents may rise above inflation.”