Rent controls at heart of reform as Housing Bill passes into law

Holyrood has passed the Housing (Scotland) Bill in a landmark vote.
Passed by 89 votes to 28 after MSPs debated around 400 amendments at the bill’s final stage, the wide-ranging legislation introduces a framework for long-term rent controls, alongside provisions on tenant protections, homelessness duties, and the implementation of ‘Awaab’s Law’ to tackle damp and mould.
Under the bill, ministers will be able to designate parts of the country as Rent Control Areas. Expected to be introduced by 2027, landlords within these zones may only increase rents in line with inflation (as measured under the Consumer Price Index) plus one percentage point, capped at six per cent per year.
After a change announced in recent weeks, the system will not apply to mid-market rent, build-to-rent properties, or student accommodation, with ministers arguing that blanket controls risk suppressing much-needed housing investment. In some cases, rents will be allowed to be increased above the rent cap.
Temporary rent freezes, introduced during the pandemic and extended during the cost-of-living crisis, lapsed earlier this year. The new bill marks the first step towards a permanent framework, though many of the details will be set out in secondary legislation.
The legislation will introduce duties on public authorities, including councils, the police and the health service, to ensure people do not become homeless – a provision dubbed “ask and act” by ministers.
They will have 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 sooner to prevent homelessness by providing support to households threatened with homelessness up to six months before homelessness appears imminent, rather than the current two months.
The bill will also broaden ministers’ powers to implement ‘Awaab’s Law’, which will ensure landlords promptly address issues that are hazardous to tenants’ health, starting with damp and mould.
The legal measure was named after Awaab Ishak, who died in 2020 after being exposed to mould in his home in Rochdale in north west England. The law will now be implemented in Scotland’s rented sector from March 2026, subject to Parliament’s agreement. Thanks to an amendment put forward by the Scottish Greens, the cap for councils to increase Council Tax on second and empty homes has been removed.
Other measures in the bill include changes to the way damages for unlawful eviction are calculated, and new rights for private and social housing tenants to request to keep a pet, while private housing tenants are to be allowed to make changes to the property they are renting.
The bill will also update the definition of domestic abuse in housing legislation and force social landlords to set out a policy to support tenants at risk of homelessness because of domestic abuse.
Under the legislation, courts will have to consider whether to delay when an eviction is carried out.
New provisions will also allow the government to use unclaimed deposits to fund support for private tenants, and enable a single joint tenant to end a joint tenancy.
Housing Secretary Máiri McAllan said: “Passing the Housing (Scotland) Bill is a landmark moment for how we prevent homelessness in Scotland.
“Whilst we already have some of the strongest homelessness rights of any country, we will now go even further to a create a gold-standard homelessness prevention system.
“Passing this groundbreaking legislation, coupled with the Housing Emergency Action Plan published earlier this month, shows just how serious we are about tackling Scotland’s housing crisis.
“Families across Scotland will have the confidence that their rented home will be free from damp and mould as we take forward work to implement ‘Awaab’s Law’. We will now work at pace to lay regulations to implement these protections from March.
“Scotland has already led the way in protecting tenants and providing strong rights when people are homeless and now the Housing Bill will revolutionise homelessness prevention and ensure rents are kept affordable.”