The Scottish Government has introduced amendments to the Housing (Scotland) Bill aimed at strengthening tenant protections and addressing the housing affordability crisis. Under the proposed changes, rent increases in designated rent control areas would be limited to the Consumer Price Index (CPI) annual rate of inflation plus 1%, with a maximum cap of 6%. This cap would apply to rent increases both during existing tenancies and between tenancies.
Social Justice Secretary Shirley-Anne Somerville emphasized the importance of these measures, stating they are designed to “protect tenants against a backdrop of a continuing cost-of-living crisis and rising energy costs.” She further highlighted that the Scottish Government is committed to improving the renting experience to create an “affordable, high-quality and fair rented sector.”
In addition to rent control measures, the proposed amendments seek to grant tenants the right to keep pets and to decorate their homes, aiming to enhance tenants’ autonomy and comfort in their rented accommodations.
Tenant advocacy groups have expressed a mix of support and concern regarding the proposals. Aditi Jehangir, chair of Living Rent, acknowledged the significance of in-tenancy protections but criticized the rent increase formula, arguing that it “locks in increases above inflation,” which could exacerbate affordability issues for tenants.
Conversely, representatives from the property industry have voiced apprehensions about the potential impact on housing supply and investment. John Blackwood, chief executive of the Scottish Association of Landlords, welcomed the amendments but emphasized the need for provisions that enable landlords to adjust rents appropriately, especially in cases where rents have been kept low to support existing tenants.
The Housing (Scotland) Bill is currently under parliamentary scrutiny. If approved, the legislation is expected to receive Royal Assent in the summer, with the earliest implementation of the provisions in the private rented sector anticipated during 2027.
These developments occur against a backdrop of significant rent increases in Scotland’s major cities. For instance, the cost of renting a private two-bedroom property in Edinburgh and the surrounding Lothian area has more than doubled since 2010, increasing by 104% from £665 per month to £1,358, with a 14% rise in the past year alone.
The proposed measures represent a concerted effort by the Scottish Government to balance the needs of tenants for affordable housing with the concerns of landlords and investors, aiming to create a fair and sustainable rental market.
