The Housing (Scotland) Bill is progressing through Holyrood and proposes to introduce rent control zones where local authorities can cap annual rent increases. If passed, designated areas could see rents capped significantly below market levels. Stage 2 amendments were published in April 2026.
The Housing (Scotland) Bill was introduced to the Scottish Parliament by the Scottish Government and proposes to introduce rent control zones across Scotland. Under the Bill, local authorities would be able to apply to ministers to have their area designated as a rent control zone, within which annual rent increases would be capped.
Stage 2 amendments were published in April 2026. The Bill is expected to complete its Parliamentary passage in 2026, with commencement of rent control provisions to follow by secondary legislation.
The rent cap level has not yet been confirmed. The Bill also contains provisions on tenants' right of first refusal when a landlord sells, and changes to the Private Residential Tenancy (PRT) framework. Scottish landlords should monitor developments closely.
Action required
Monitor the Housing (Scotland) Bill's progress. If you let property in Scottish local authority areas likely to be designated as rent control zones, review your portfolio strategy in light of potential rent caps. Seek advice on how rent control would affect your investment model.
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