The Housing Bill (Scotland)

Holyrood has now completed the final stage of proceedings for the Scottish Housing Bill and is soon to be implemented.

The bill, proposed by Cabinet Secretary for Housing Màiri McAllan, has gone through considerable changes since it was proposed, with over 400 amendments debated across two days last week.

Rent Control Measures Will Not Apply to Student Housing

A notable change in Stage 3 of the bill is the explicit exemption of student housing from rent cap mechanisms, as successfully proposed by the Scottish National Party’s (SNP) Cabinet Secretary for Housing, Màiri McAllan.

She argued that including student tenancies in rent controls had been a “significant error” that caused “considerable confusion and panic” in the sector, stressing that Purpose-Built Student Accommodation (PBSA) operates differently—with rents typically fixed for an academic year, unlike the mainstream private rented sector (PRS).

She concluded that this reversal was critical to protect investment confidence and maintain the high-volume housing supply necessary during the current housing emergency.

Maggie Chapman, Dundee University Rector and a member of the Scottish Green Party, compared McAllan’s amendment to “sweeping away” necessary protections for students facing exploitation and unaffordable rents. She cited examples of students paying as much as £554 per week in Edinburgh for PBSA.

Despite these concerns, McAllan’s amendment to remove student residential tenancies from the definition of “relevant tenancy” was broadly supported by the SNP, the Conservatives, Scottish Labour, and the Lib Dems.

The bill also mandates that prospective landlords for any exempt property (including student housing) must include a clear statement in all written advertisements indicating that the property is an exception and that rent control does not apply.

However, private rental properties in a designated rent control area are subjected to a specific rent cap.

Under the new bill, housing in a rent control area can only raise rent by CPI (Consumer Price Index) + 1% margin, to a maximum of 6%. 

An attempt by conservative’s Edward Mountain to increase the margin to CPI + 2% was rejected, while an attempt by Chapman to link the permitted rent increase rate to tenant’s wage growth, via the Annual Survey of Hours and Earnings (ASHE) and Average Weekly Earnings (AWE), was also rejected by the Scottish Parliament.

The bill failed to regulate the starting rent for a new tenancy following the departure of a previous tenant. Housing quality will also not be taken into consideration when calculating the rent cap, as such proposals in Stage 2 was removed in prioritization of a simple and standardized rent cap formula.

The majority of MSPs also rejected proposals that would have required landlords to comply with minimum repair standards as a prerequisite for any rent increase.

Rent control areas will be subject to a statutory review of their operation and effectiveness 5 years after the bill is enacted.

• Councils retain the duty to conduct a five-year periodic assessment of local rent conditions.
• The local authority submits a recommendation to Scottish Ministers based on evidence gathered.
• Scottish Ministers must consult with local authorities, tenant and landlord representatives, and other relevant parties before issuing regulations.
• Only Scottish Ministers can officially designate rent control areas. Stage 3 amendments reaffirmed Ministerial discretion, meaning Ministers are not legally required to follow a local authority’s recommendation if the evidence is considered insufficient or disproportionate.

Law Enforcement and Tenant Protection

The bill significantly strengthens enforcement powers against landlords who breach the new regulations:

• Landlords violating rent control measures face penalties or compensation up to £1,000.
• Landlords can no longer inflate charges for broadband, district heating, or utilities to circumvent rent caps.

Several additional amendments were passed to enhance tenant rights and ensure stronger enforcement of landlord responsibilities. These include changes to termination rights, property alterations, and joint tenancies:

• Requests for alterations or pets must now be processed within 30 days, reduced from 42 days.
• Inspectors assessing damp or mould repairs will be regulated under new provisions inspired by Awaab’s Law, following the death of 2-year-old Awaab Ishak from mould exposure.
• Ministers can regulate conditions under which student tenants may end fixed-term leases early, including withdrawal or interruption of studies.
• A single tenant can now end a joint tenancy without needing consent from other tenants.

Homelessness Prevention and Eviction Rules

The bill places a new “Ask and Act” duty on authorities—including councils and the police—to ensure individuals receive assistance up to six months before homelessness becomes imminent.

Notably, the legislation enhances protection for vulnerable tenants by embedding compassionate considerations into eviction proceedings.

Courts and the First-tier Tribunal (FTT) must now explicitly consider financial hardship and the health conditions of either the tenant or landlord when deciding whether to delay an eviction order.

The penalty for unlawful eviction has also been substantially increased to the higher of two months’ rent or £1,000.

The bill is set to go ahead once it has received Royal Assent.