Scottish parliament votes in favour of allowing councils to cap rent increases

"The provision for ministers to designate rent control zones, allowing councils to limit rent increases to one percentage point above inflation, up to a maximum rent increase of 6%, was hailed as a historic step for fixing the rigged housing market by the Scottish Greens. They had made rent controls and stronger tenants' rights a key part of the Bute House agreement, their governing partnership with the SNP which ended in acrimony last year."

"But the Scottish government's housing minister, Mairi McAllan, announced last month that mid-market rent and build-to-let homes, including student accommodation, will be exempt from the cap because of concerns the measure could suppress housebuilding. The Scottish tenants' union Living Rent described the exemptions as a cowardly response to extensive lobbying from landlords that would create a two-tier system of rent controls. The Scottish Association of Landlords described the move as a promising development and previously lobbied for the cap rate that was eventually agreed."

Scottish parliament passed legislation introducing long-term rent controls that allow ministers to designate rent-control zones and limit rent increases to one percentage point above inflation, capped at 6%. The measure exempts mid-market rent and build-to-let homes, including student accommodation, amid concerns about suppressing housebuilding. Tenants' groups criticized the exemptions as a response to landlord lobbying that creates a two-tier system, while landlords welcomed the agreed cap rate. The bill passed 89–28 and includes Awaab's law to set deadlines for landlords to fix hazardous issues, stronger support for social tenants facing domestic abuse, and a council tax amendment on second and empty homes. Greens failed to secure tougher eviction protections.

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