Scotland’s Housing Bill Aims to Transform Rent Control and Tenant Rights

The Scottish Government’s new Housing Bill is set to make significant changes to rental regulations and tenant rights as it approaches its final stage in Parliament. Scheduled for debate on March 5, 2024, the legislation aims to establish a long-term system of rent controls and strengthen protections for tenants across Scotland.

Scottish Housing Secretary Màiri McAllan has characterized the Bill as the “gold standard” for preventing homelessness. In its current form, the legislation would empower local councils to designate rent control areas, limiting rent increases to inflation plus one percentage point. This initiative is part of a broader strategy to enhance the housing situation in Scotland, making it more equitable for renters.

The Bill also includes provisions for public bodies, such as local authorities, to assess individuals’ housing circumstances actively. This proactive approach aims to prevent homelessness by ensuring that those at risk receive timely assistance. In addition, the Housing Bill seeks to implement “Awaab’s Law,” named after Awaab Ishak, a two-year-old who tragically died in 2020 due to exposure to mould in his home. The proposed legislation aims to ensure that social landlords address dangerous mould and damp conditions within a specified timeframe.

A key amendment to the Bill will extend the period for tenants to request a rent adjudication from 21 to 30 days. Additionally, a proposal from the Scottish Greens would simplify the process for renters wishing to keep pets or service animals. Currently, tenants must seek permission from their landlords, who have 42 days to respond. The proposed changes would reduce this response time to just 14 days, while also allowing tenants to proceed without a formal reply.

The legislation also aims to increase penalties for landlords who wrongfully terminate private tenancies and streamline processes for determining damages in cases of unlawful eviction. McAllan emphasized that Scotland possesses some of the strongest tenant rights globally, stating, “The actions we have taken in just the past month demonstrate our determination to tackle the housing emergency.”

Despite the positive aspects of the Bill, the Scottish Government has faced criticism regarding exemptions for certain rental categories. It was revealed that mid-market rent (MMR) and build-to-rent (BtR) properties would be excluded from the rent control measures. This decision has drawn backlash from both the tenants’ union Living Rent and the Scottish Greens, who were instrumental in shaping the Bill.

In an open letter, Living Rent urged McAllan to reconsider these exemptions, arguing that they undermine the Bill’s goals. McAllan defended her choice, citing the need for increased housing supply. “We need more houses,” she stated, highlighting that the decision was based on fostering investment needed to expand the housing stock.

The Housing Bill’s detailed provisions will be scrutinized line-by-line during the parliamentary session, with nearly 400 amendments expected to be debated. Following this review, further discussions are scheduled for March 6, 2024, leading to a final vote. Despite the many proposed amendments, sources indicate that the Scottish Greens will support the legislation, paving the way for its passage unless there is significant dissent within the Scottish National Party (SNP).

Scottish Conservative spokesperson on housing, Meghan Gallacher, has voiced strong opposition to the Bill, labeling the rent control measures as “reckless.” She warned that making such provisions permanent could deter investors, reduce available housing for tenants, and incur significant costs to the sector.

As Scotland prepares for these transformative changes in housing legislation, the outcome of the Housing Bill could reshape the landscape for both renters and landlords in the coming years.