PRIVATE landlords could see their incomes slashed under radical new proposals to introduce a Dutch-style points system in Scotland to determine rent levels.

Proposals to cap rent increases would do nothing to address already inflated costs that have a "devastating" impact on many tenants, according to a think tank.

In a paper published to coincide with the centenary of the Glasgow Rent Strike, Common Weal said an 'initial rent' should be introduced, with a maximum imposed based on a system that would take into account factors including the size of a property, its condition and transport links rather than solely the market rate.

The author of the paper, the former NUS Scotland President Gordon Maloney, said that this would mean many tenants would see their rent costs slashed, particularly in areas like Aberdeen, Edinburgh and Glasgow where costs in the private rental sector have spiralled well above inflation levels in recent years.

Common Weal, which believes the system would help achieve 'affordable' rent levels of no more than 25 per cent of a tenant's income, is also proposing a move towards indefinite tenancies, caps in rent increases and is calling for renters to be paid compensation if they are removed due to circumstances beyond their control, such as the homeowner selling up.

Landlords representatives warned that heavy-handed rent regulation will have an adverse effect on housing supply in Scotland and deter much-needed investment to help to build more homes.

Mr Maloney, a member of the Living Rent Campaign, said that the group welcomed proposed reforms by the Scottish Government, which include allowing councils to bring in rent controls in certain areas, but believed they did not go far enough. He suggested that reforms could be introduced through a phased approach in a bid to prevent landlords quitting the sector.

He added: "We don't need to limit rent increases if people are already being forced into foodbanks. The argument is capped increases will bring predictability but if something is predictably unaffordable, it's still unaffordable. The report isn't about trashing landlords - it's about creating a sector that works.

"Scotland's housing crisis is at a tipping-point and we urgently need solutions. The private rented sector is growing faster than any other form of housing, and more and more people are becoming trapped in a sector that isn't appropriate or affordable for them.

"This paper outlines what the answers are. It is time for Scotland to join the majority of European countries in guaranteeing private tenants affordable rents and security of tenure."

The report, published today, was launched at the Old Sheriff Court Building on Brunswick Street in Glasgow's merchant city, which was the final destination of an enormous march by tens of thousands of women leading the 1915 Glasgow Rent Strike.

They opposed landlords driving up costs for wartime workers and evicting those who could not pay. It ended in a historic victory when legislation to restrict rents to the pre-war level was brought in.

John Blackwood, Chief Executive the Scottish Association of Landlords, said he supported reform but warned against "unintended consequences" of heavy handed measures that could reduce investment and drive responsible landlords out of the sector.

Meanwhile, social justice secretary Alex Neil launched a new charity aimed at building 1,000 new homes offering affordable private rents within five years. The Local Affordable Rented Housing Trust has been backed by a £55 million Scottish Government loan with private sector cash expected to bring the total to more than £100m. The first project is taking place in Musselburgh, East Lothian.