Rent controls set to pass in new housing bill - but not for all tenants

Campaigners from the group Living Rent held a rally outside Holyrood

New legislation being debated in the Scottish Parliament could lead to rent controls in some areas but campaigners have said they don't go far enough.

The Housing (Scotland) Bill, which is at its final debate stage before a vote next week, would allow councils to impose rent controls – capping increases at the rate of inflation plus one percentage point.

However, earlier this month, the Scottish government announced mid-market rent and build-to-let homes would be exempted from the caps over fears it could suppress housebuilding.

Tenants union Living Rent accused the Scottish government of "prioritising landlords" by watering down the controls.

About 400 amendments to the Bill will be examined at Holyrood during its stage three arguments on Tuesday and Wednesday.

What's in the housing bill?

The bill was originally published by the Scottish government in March 2024, while the Scottish Greens were still in government.

It came against a backdrop of councils declaring housing emergencies, and ahead of the government declaring a national housing emergency in May 2024.

The new Bill proposes long-term rent controls.

Temporary rent control measures were put in place during the pandemic, but those expired in April 2025.

The Bill also proposes duties on public authorities - including councils, the police and the health service - to ensure people do not become homeless.

They will be required to ask about the housing circumstances of those they interact with and provide support, or refer them, to their local authority.

Councils will be required to act six months before homelessness is imminent, instead of the current two months.

And the bill will update the definition of domestic abuse in current housing legislation and force social landlords to devise a policy to support tenants at risk of homelessness because of abuse.

Housing Secretary Màiri McAllan said the bill would be the "gold standard" in homeless prevention

Ahead of the debate, the tenants' union Living Rent held a rally outside Holyrood urging MSPs to go further.

The union's national campaign chairwoman Ruth Gilbert said rent controls were a "vital step forward" but that the proposals "are not strong enough".

"This bill has been gutted of its vision and potential and this government has totally conceded to the demands of landlords, watering down rent controls at every step of the way," she said.

"With the exemptions suggested, this government will create a two-tier system of rent controls that will leave huge portions of the private sector without recourse to challenge rent hikes."

The housing bill addresses rent controls and homelessness

She said the bill also committed to above inflation rent increases which would see tenants continue to face yearly unaffordable rent increases.

She added: "The double whammy of exemptions and allowing above inflation rent increases show that, yet again, this government is prioritising the profits of landlords and developers over tenants' right to affordable homes.

"In the middle of a housing emergency, this is nothing short of a disgrace."

Màiri McAllan said the bill would create a "gold standard" homelessness prevention system.

She said: "We already have some of the strongest homeless rights in the world, however this legislation will go even further to protect and support people threatened with homelessness.

"This will be a landmark bill and I hope colleagues from across parliament can come together to ensure it is passed at the end of the Stage 3 proceedings."

Will the bill pass into law?

The Scottish Conservatives have already said they will vote against the bill.

The party's housing spokeswoman, Meghan Gallacher, has called the rent control plan "disastrous".

She has warned the move will "worsen the hostile environment for developers", reducing housing supply even further and leading to billions in lost investment for the sector.

Ms Gallacher said: "The SNP's reckless obsession with rent controls will only deepen the housing emergency they have created in Scotland.

"Making this botched measure permanent will drive away investors, slash the available housing stock for tenants and cost the sector billions."

Scottish Labour supported the earlier stages but said that significant amendments were needed.

However, the Scottish Greens have pledged their support, so the bill should pass.

'Greedy developers and rogue landlords'

Speaking ahead of the debate, Green MSP Maggie Chapman urged the government to be as bold as it can be and ensure that the bill is as robust as possible.

The Greens will move a number of amendments to this aim including banning evictions for the first 12 months of a tenancy, banning winter evictions and fining landlords who charge illegal rent increases.

Ms Chapman said: "This bill is a huge step forward for renters and will finally start to undo some of the damage being done by an out of control landlord lobby who have had their way for too long.

"It's easy to say the private rental market is broken, but it isn't. It is rigged. It is doing what it set out to do which is enriching greedy developers and rogue landlords.

"Far too many renters are having to fork out huge sums for extortionate rents, while living in substandard accommodation and in a state of constant anxiety. Things need to change.

"We are tabling amendments that we believe will make this bill even stronger and allow more security and peace of mind for individual renters and families. "

The Scottish Association of Landlords welcomed the rent cap at inflation plus 1% after lobbying for it and saw the cabinet secretary's exemptions as a promising development.

But the organisation still had reservations, emphasising the rent controls would need to be flexible and proportionate.