Loreburn HA’s deputy chief executive, Gary Allison, said: “Our business plan had a planned rent increase contained within it for next year subject to consultation with our customers.

“If this were to drop to zero, we are looking at a cash inflow reduction of £3.17m over the first five years and £43.7m over the life of the plan.

“In relation to new build development, all registered social landlords put up their housing stock as security against new borrowings. A rent freeze will lower the value of our housing stock, meaning we can borrow less and have less to invest into building new homes and upgrading existing homes.

“Housing associations throughout Scotland have expressed concerns over this legislation. At Loreburn we are no different. Rent freezes risk jeopardising the Scottish Government’s targets both on affordable housebuilding and on energy efficiency and investment works planned into the future.”

With long term debt interest now priced at 5.5%, Mr Allison warned that soaring interest rates will have a major long-term impact. Loreburn HA previously secured a £30 million loan at an attractive 2.22%. If today’s rates applied it would translate to an extra £1m in payable interest.

“Lower rents and higher interest payments means less money to spend on housing stock,” Mr Allison said in his remarks to the Dumfries & Galloway Standard.

He believes social rents in Scotland are around half those of the private sector, and thus lower in Scotland than in the rest of the UK. Specifically, Loreburn rents were frozen for the periods 2017/18 and 2018/19 and rose by only 2% last year.

Loreburn HA hopes that the Scottish Government will reconsider the rent freeze, as their planned increase, if permitted, would be “significantly below inflation”. However, it would be “vital” to securing cash for future investment plans including projects to building affordable homes.

Mr Allison added: “Our vision remains to create great places to live and to achieve this we must invest in new and existing homes.”