Scotland’s Parliament has passed the Housing (Scotland) Bill, representing one of the most consequential reforms of housing law in a generation. The Bill seeks to balance the dual aims of accelerating homebuilding while strengthening tenant protections, particularly in the private rented sector. As it moves from legislation into implementation, stakeholders across housing, development and investment will need to adapt rapidly.
Rent Control Zones Introduced
A central pillar of the new law is the introduction of Rent Control Areas (RCAs). Local authorities will be empowered to designate areas where rents are capped, with the Scottish Ministers having final approval. Within RCAs:
- Landlords will face limits on annual rent increases, both during and between tenancies
- Rent increases may be capped at CPI + 1%, up to a maximum of 6%, subject to secondary legislation
- Exemptions may apply for certain types of housing, including Build to Rent and Mid-Market Rent
The policy aims to protect tenants from unaffordable increases in tight rental markets while still encouraging development and investment in much-needed new supply.
Tighter Regulation Across the Board
Even outside of Rent Control Areas, rent regulation will become more prescriptive. The Bill introduces:
- Minimum intervals between rent reviews
- Advance notice periods for rent increases
- Stronger oversight of rent-setting mechanisms
These changes reduce flexibility for landlords and institutional investors but respond to concerns about affordability and housing insecurity.
Stronger Rights for Tenants
The Bill includes expanded rights for tenants to personalise and stabilise their living conditions. New entitlements include:
- The right to request to keep a pet, with landlords required to justify refusals
- The right to make minor alterations (e.g. decorating, fixtures), again subject to reasoned objections
- Simplified procedures to end a joint tenancy, allowing one tenant to exit without unanimous agreement
These reforms are intended to give tenants more autonomy and reduce barriers to making a property feel like home.
Stricter Standards on Health and Safety
In the wake of growing concern over poor housing conditions, the legislation introduces tougher requirements for dealing with property hazards. Landlords will face:
- Tighter timeframes for addressing issues such as damp, mould and structural disrepair
- New obligations to proactively manage and document hazard remediation
- Alignment with wider UK policy shifts, such as Awaab’s Law in England
This marks a move toward a proactive enforcement model rather than relying solely on tenant complaints.
Simpler Administration of Tenancies and Deposits
The Bill also introduces administrative changes to improve tenant security and streamline processes:
- A single joint tenant can now end their part of a tenancy without needing the agreement of co-tenants
- Unclaimed tenancy deposits may be passed to a public fund or reallocated to prevent long-term disputes
- Future regulation may allow more transparency and oversight of deposit protection schemes
A New Duty to Prevent Homelessness
One of the most ambitious reforms is the introduction of the “Ask and Act” duty, requiring all relevant public services to:
- Proactively ask about a person’s housing situation
- Act to prevent homelessness if risks are identified
This reframes homelessness prevention as a shared, cross-sector responsibility – integrating health, education, and social care with housing support.
Risks and Market Concerns
Despite widespread political support, the Bill raises concerns across the development and investment landscape:
- Rent controls could limit investor confidence, particularly in Build to Rent and urban PRS schemes
- Developers may reconsider project viability where rental income growth is restricted
- Local authorities face significant resourcing challenges, especially in managing rent surveys, enforcement, and compliance
- Carve-outs and exemptions for institutional landlords may undermine the consistency of the policy’s intent
Some industry figures have warned the reforms risk pushing investment out of Scotland, especially if rent caps are perceived as arbitrary or poorly implemented.
What Happens Next?
With the Bill passed, the focus will now turn to:
- Finalising secondary legislation, including specific rent cap thresholds and exemption criteria
- Developing guidance and support for local authorities to implement Rent Control Areas
- Building capacity to meet the new compliance, inspection and enforcement requirements
- Monitoring market reaction, particularly in the Build to Rent and affordable housing sectors
Final Thoughts
The Housing (Scotland) Bill marks a major policy shift, reflecting growing public pressure for fairer, more secure tenancies and improved rental standards.
For tenants, the Bill offers clearer rights, stronger protections, and more predictable costs.
For landlords and developers, it introduces new regulatory constraints, reputational expectations, and financial risk.
Success will depend not just on what’s written into law – but how well it’s resourced, enforced, and communicated in practice.