Tenants living in designated rent control areas in Scotland will see annual rent increases capped at 6% under new proposals brought forward by the Scottish Government. The plans, which form part of amendments to the Housing (Scotland) Bill, aim to strengthen tenant protections amid the ongoing cost-of-living crisis.
Under the proposals, rent rises would be restricted to the Consumer Price Index (CPI) rate of inflation plus 1%, with a firm ceiling set at 6%. The cap would apply not only during the course of an existing tenancy but also in between tenancies — a move intended to curb sudden rent hikes when tenants move out and new ones move in.
If passed by the Scottish Parliament, the new rent controls would apply to areas formally designated as rent control zones, with Scottish ministers holding the authority to determine which regions qualify.
Extra rights for tenants
Beyond rent limits, the Bill also includes greater rights for tenants, including the right to keep pets and make decorative changes to their homes. These changes are designed to give renters more autonomy and a greater sense of ownership over their living spaces.
Tenants’ groups have welcomed many of the proposals, especially as private rents have outpaced wage growth over the past several years. According to national data, rents in Scotland’s major cities have risen by double digits in some areas, putting increasing pressure on household finances.
Government’s commitment to tackling housing crisis
Shirley-Anne Somerville, the Social Justice Secretary, said the measures would help address both the housing emergency and broader issues like child poverty.
“Eradicating child poverty remains this Government’s top priority and having a home can make a direct contribution to achieving this,” she said. “These measures will also help protect tenants against a backdrop of a continuing cost-of-living crisis and rising energy costs.”
Ms Somerville added that the Scottish Government was doing all it could within devolved powers to improve the lives of families, and that the reforms would contribute to building an “affordable, high-quality and fair rented sector.”
She stressed that the Government had worked in close consultation with tenant organisations to craft the Bill’s provisions, saying:
“Scotland already has some of the strongest rights in the UK for tenants, but we want to improve the renting experience even more.”
Critics warn of unintended consequences
Not everyone is supportive of the proposals. The Scottish Conservatives have voiced concerns that the rent cap could stifle private-sector investment and discourage new housebuilding, at a time when Scotland faces a housing shortage.
Property industry stakeholders argue that rent controls may act as a disincentive for landlords to invest in property upgrades or expand their portfolios, potentially reducing the overall supply of homes for rent.
Mixed reactions from campaigners
The tenants’ union Living Rent cautiously welcomed some elements of the Bill, particularly the protections around rent increases between tenancies. However, the group believes the proposals don’t go far enough in curbing unaffordable rents.
More Read
Aditi Jehangir, chairwoman of Living Rent, said:
“The in-between tenancy protections suggested by the Government are crucial. They mean that landlords will stop evicting tenants to up the rent.”
But she raised concerns about the formula itself, which allows for rent increases above the rate of inflation:
“The last decade has seen rents grow completely unaffordable. Any formula that increases rents above the rate of inflation will push already struggling tenants further into poverty.”
Living Rent is calling for further revisions to the Housing Bill, with a sharper focus on affordability and stronger safeguards against landlord exploitation.
As the Housing (Scotland) Bill progresses through Holyrood, the debate over how best to balance tenant protections with housing market investment is likely to intensify. With housing pressures showing no signs of easing, the stakes are high for both tenants and landlords across the country.
