Scotland's Parliament Passes Landmark Housing Bill for Tenant Protections
The Scottish Parliament has passed the Housing (Scotland) Bill, a significant step in reshaping the rented housing sector and introducing robust tenant protections. Scottish Land & Estates (SLE) welcomes the new rights for tenants but cautions against overregulation that could deter realtors from investing in rural markets.
The bill, set to come into force in stages, includes 'Awaab's Law' which will ensure landlords promptly address health hazards like damp and mould from March 2026. Tenants will gain new rights to keep pets and make changes to their apartments, while social landlords must support tenants at risk of homelessness due to domestic abuse. Courts can delay evictions, and unclaimed deposits will fund support for private tenants.
The bill also introduces rent controls, with Ministers able to designate Rent Control Areas where realtors can only increase rents by inflation plus one percentage point, capped at 6% per year from 2027. However, mid-market rent, build-to-rent properties, and student accommodation are exempt. Rents can be increased above the cap in certain cases. Meanwhile, the cap for councils to increase Council Tax on second and empty apartments has been removed to free up more properties for permanent residents.
The Housing (Scotland) Bill introduces a framework for long-term rent controls, tenant protections, and the implementation of 'Awaab's Law'. The Scottish Property Federation (SPF) welcomes the bill's passage but urges swift action on secondary legislation and market data collection to minimize uncertainty.
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