Ninety new homes for a community that is living under the spectre of an almost unthinkable housing shortage were scratched as a direct result of Scottish Government policy.
A major developer has made no bones about the fact it abandoned already approved housing because of the SNP and Green administration's curbs on rent increases, and instead is building student flats, with the math apparently not working for family homes.
The housing emergency declared by the City of Edinburgh Council centres on the prospect of 5,000 households now facing homelessness because of a shortage of affordable housing. Glasgow, also on an emergency footing, expects 2,500 batched asylum decisions in the city.
Vita Group has every right to revisit its bottom line, and the numbers must work for it to opt against providing 90 build to rent homes, to instead lodge a new plan for 267-bed student accommodation and three affordable homes on the same Old Town site in the Scottish capital.
One resident said there is an "over-supply of student accommodation depriving [the] area of affordable new homes for permanent residents".
READ MORE: Plan for student housing in place of new homes set to be approved
Cheshire-based Vita Group said: "Until recently the intention had been to build out this permission as ‘build to rent’ (BTR) residential accommodation.
"Interest in the site for BTR accommodation was withdrawn, however, when the Scottish Government introduced a ‘rent freeze’ from September 2022.
"Purpose-built student accommodation, alongside affordable housing and a commercial/community unit, constitutes a viable alternative use for the site."
A spokesperson for the Scottish Government said that "since April 2023 in-tenancy rent increases have been capped at a maximum of 3% in most cases, or 6% in some special circumstances", adding: "So we wouldn’t say that there is a ‘rent freeze’ in place at the moment; it is a rent cap."
Patrick Harvie, Green MSP and Minister for Tenants, said: "Our temporary, emergency legislation has led the way at a time when rents have been rising across the UK, striking an important balance between protection for tenants and the rights of landlords. The latest Scottish Landlord Register data show the number of registered properties for rent in Scotland between August 2022 and November 2023 has increased by 1.5%."
The Edinburgh plan is recommended for approval and a decision is expected on Wednesday.
Elsewhere this week, business editor Ian McConnell turns his gaze to Switzerland, writing: "Rachel Reeves seemed at pains this week in Davos to make a big song and dance about Labour being ‘pro-business’ and the party which would champion wealth creation.
"She declared on social media platform X: ‘Together, we will restore Britain’s reputation as a place to do business. #Davos 2024’
Luxury Perthshire fashion retailer Oliami has established a presence in Glasgow with the acquisition of a renowned West End boutique, business correspondent Kristy Dorsey writes. Pampas, recognised as one of Scotland's premier independent high-end retailers since 1990, reopens at the end of this month as Pampas by Oliami.
There was a mixed bag from Marks & Spencer which said it is to open its fourth largest store in Scotland in Aberdeen, while quitting the St Nicholas Street store it occupied since 1944.
The high street giant said the store will close down after the £15m expansion of its outlet on the city’s Union Square is complete in the spring of 2025.
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