The Scottish Government must take amendments to the Housing (Scotland) Bill forward to make it workable, according to Propertymark. The Housing (Scotland) Bill was introduced on 26 March 2024 and includes powers for the Scottish Ministers to designate Rent Control Areas following data collection and reports made by local authorities.
The Bill passed Stage 1 debate in the Scottish Parliament on Thursday 28 November 2024 after the publication of the Stage 1 report on 14 November 2024. Other proposals in the Bill include limits on the frequency of ‘in tenancy’ rental increases and controls on rental increases ‘between tenancies’ as well as new rights for tenants which include making changes to their rented property and requests to keep pets. The Bill also includes new responsibilities on local authorities, social landlords and relevant public bodies to help tackle homelessness.
With the Bill now at Stage 2, the Local Government, Housing and Planning Committee will first meet on 29 April 2025 to consider and debate tabled amendments. Stage 2 must be complete by 29 May 2025.
Propertymark’s Push for Practical Reforms at Stage 2
Propertymark has been working with MSPs to table amendments to the Housing (Scotland) Bill ahead of Stage 2, alongside engaging with the Housing Minister and Scottish Government officials giving feedback on amendments that the professional body supports, and on issues being considered. As a result of these engagements, amendments have been tabled by MSPs to require Scottish ministers to initiate a strategy for the private rented sector, ending between tenancy rent controls, impact assessments to be carried out on the impact to rural and island communities, ending the Additional Dwelling Supplement for buy to let property, as well as means to guarantee that local council reports and the application of rent control areas is more consistent across Scotland.
Amendments have also been tabled to enable rents to be reset to market value between lets, if the final rent is more than 10% below market value thanks to the work conducted alongside other sector organisations. Other amendments supported by Propertymark and other sector organisations include allowing landlords to apply to a rent officer for above cap increases where substantial repair/improvement/compliance costs have been incurred. Furthermore, the Local Government Housing and Planning Committee has received the Scottish Ministers’ proposed amendments to the Housing (Scotland) Bill. These include a rent cap that will be Consumer Price Index (CPI) + 1 per cent up to a maximum of 6 per cent, in any designated rent control area; an amendment to the final date of the first reporting period for the periodic assessment of rent conditions from 30 November 2026 to 31 May 2027; 30 days instead of 21 days for a tenant to submit an application for a review of their rent increase in a non-rent controlled area; cut the succession qualifying period when a tenant dies from 12 months to 6 months; require a tenant ending a joint tenancy to also issue a copy of the notice to end the tenancy to other joint tenants.
The Scottish Government has also said it is committed to and will contemplate how to implement Awaab’s Law for private tenants, which would require private Scottish landlords to address dangerous living conditions, including damp and mould, within certain timeframes.
However, until the Bill becomes law, there will be no immediate replacement for temporary rent controls, as introduced via the Cost of Living (Tenant Protection) (Scotland) Act 2022 and Rent Adjudication (Temporary Modifications) (Scotland) Regulations 2024. Consequently, since 1 April 2025, the private rented sector has returned to standard rules for rent adjudication. This means if a tenancy began on or after 1 December 2017, rent increases will only happen once in 12 months, and landlords must use the recommended form, and are obliged to give three months’ notice to the tenant.
A tenant will have 21 days of gaining the notice (if they believe their rent is too much) to challenge it, and they must then contact Rent Service Scotland who will determine the amount of rent the tenant must pay based on an evaluation of the ‘open market’ rent, which could be either lower or higher than the increase requested by the landlord.
Both the tenant or landlord can then appeal within 14 days of gaining the Rent Service Scotland notification, which would return to a rent officer who would make a ‘final order’ decision, and finally an appeal can be given to the First Tier Tribunal (Housing and Property Chamber) within 14 days of the final order. Timothy Douglas, Head of Policy and Campaigns at Propertymark, said: “Propertymark is pleased to see amendments tabled to strengthen the Housing (Scotland) Bill. We have continually lobbied MSPs and engaged the Housing Minister and his Team. Policymakers must now take these amendments forward if the Bill is going to become more workable. It is vital that MSPs and the Scottish Government listen to the concerns of letting agents and their landlords and amend the legislation, so it is fit for purpose, doesn’t stifle investment in private rented property, and is fair to both landlords and tenants.”
