The Scottish Government has put forward a comprehensive amendment to the Housing (Scotland) Bill, targeting rental stability.
- The proposed amendment suggests capping rent increases to the Consumer Price Index (CPI) plus 1%, with a 6% maximum.
- This rent cap will apply in designated rent control areas, impacting rent adjustments during and between tenancies.
- A public consultation is scheduled for Spring 2025 to gather views on possible rent control exemptions.
- Stakeholders have expressed both support and concerns regarding the amendment’s ability to encourage investment and protect tenant rights.
The Scottish Government has introduced a significant amendment to the Housing (Scotland) Bill, focused on stabilising rent increases in designated areas. This initiative aims to cap rent hikes to the Consumer Price Index (CPI) plus 1%, but not exceeding a 6% rise. The proposal is set to apply to rent increments during the life of a tenancy as well as in transition periods between tenancies, thereby providing a consistent structure to managing rent adjustments.
This legislation, if passed, will specifically target regions with existing rent controls, presenting a dual benefit of protecting tenants and recognising landlords’ property rights. By stabilising rental costs, the measure is part of a broader strategy to combat poverty while simultaneously encouraging investment in the housing sector. The Housing Minister, Paul McLennan, emphasised that this reform is vital for ensuring tenants can access safe, secure, and affordable housing, stating: “The Housing (Scotland) Bill includes a package of reforms which will help ensure people have a safe, secure, and affordable place to live.”
Public consultation is scheduled for Spring 2025, which will explore possibilities for exemptions from these caps and discuss permissible circumstances for overrides. This forthcoming consultation emphasises the government’s commitment to consider diverse stakeholder input, balancing tenant protection with property investment interests.
The proposal has garnered varied reactions from stakeholders. Paul McLennan, the Housing Minister, noted the crucial role of the private rental sector in providing quality, affordable housing and highlighted the importance of investment in rented properties. In contrast, concerns were voiced by Timothy Douglas, Propertymark’s head of policy, who argued that the Bill in its current form does not sufficiently address the demand for private rented properties or improve legislative consistency for data collection and reporting timelines. He cautioned that removing incentives for landlords to enhance properties between tenancies might dissuade investment.
While the amendment is designed to offer landlords a transparent system reflecting the costs of renting property, it simultaneously aims to shield tenants from excessive rent increases. This reform seeks a balanced solution to the challenges faced in the Scottish rental market by acknowledging the importance of both tenant protection and landlord confidence in property investment.
The proposed amendments to Scotland’s Housing Bill reflect a balanced effort to secure tenant rights while encouraging rental sector investment.
