Scottish Housing Bill published with homelessness prevention duties for landlords

When a social landlord considers that a tenant is experiencing domestic abuse, which partially explains why rent has not been paid, the landlord must support the tenant and provide them with details of other domestic abuse services.

The legislation contains a number of protections for private renters as pledged by the Scottish government in 2021. These include long-term rent controls for private tenancies, new rights to keep pets, decorated rented homes and stronger protection against eviction.

Local authorities will be required to report to Scottish ministers every five years about the rental conditions of their area. Ministers must then state whether they propose to bring rent controls into all or part of the area.

Controls will last five years and could be a maximum increase of a specified percentage, a specified range or a formula. Ministers must also consult the local authority and tenants and landlords in the relevant area before bringing in rent controls. If rent controls are deemed no longer proportionate, ministers must change or revoke them “as soon as reasonably practicable”.

Tenants can refer rent increases to a rent officer, who then has the power to order landlords that their increases have no effect.

Tenants can also apply to a first-tier tribunal in relation to a rent increase notice for the first time under the tenancy.

When making an eviction or possession order for private, secure or assured tenancies, the court must consider whether it would be “reasonable” to delay the end of the tenancy. Reasons include whether ending the tenancy without delay would cause the tenant or landlord to experience financial hardship, have a detrimental effect on the health of the tenant or landlord, or whether a “seasonal factor” would contribute to any financial hardship or detrimental effect.

Housing minister Paul McLennan, of the SNP, and tenants’ rights minister Patrick Harvie, of the Green Party, will lead the bill’s passage through the Scottish parliament.

Mr McLennan said: “Scotland already has the strongest rights in the UK for people who become homeless – but nobody should have to experience the trauma and disruption of losing their home.

“Early action, through the kinds of measures included in the Housing Bill, results in fewer people reaching the point of housing crisis. It also means people facing homelessness have more choice and control over where they live, helping them to maintain relationships in their community and stay in work.”

Mr Harvie said: “A fairer, well-regulated rented sector is good for both tenants and landlords. Tenants benefit from improved conditions and security, while good responsible landlords will thrive when their good practice is recognised by regulation.

“Scotland has led the way across the UK in improving the experience of people who rent their homes and this reform has been at the same time as significant growth in the size of the private rented sector. So progressive reform can lead to better conditions and a healthy rented sector overall. I want to keep working with both tenants and landlords to achieve that goal.”

Callum Chomczuk, national director of the Chartered Institute of Housing Scotland, said: “The Housing Bill, if appropriately funded, could be an opportunity to drive positive systemic change, with welcome new proposals for victims of domestic abuse and those at risk of homelessness. Although we have real concerns about the impact a rent control policy will have on the supply of privately rented homes.

“However, no matter how welcome any policies are, any legislation will take years to come into effect and with Scotland in the midst of a housing emergency we are concerned that this bill doesn’t address the structural changes required in our housing system today."

Ben Twomey, chief executive of Generation Rent, welcomed the permanent rent control framework. He said: “The proposed system has the potential to improve the tenant experience in Scotland but it needs to be designed well, so it can be implemented and enforced effectively. As it stands the local nature of the regulation could lead to tenants outside of rent control areas facing unaffordable rent increases.

“It will also take some time for the changes to come into force, with local assessments and consultations needed even after the bill becomes law. In the meantime, tenants face rent increases of up to 12% even with the interim protections.”

He added: “Nevertheless, alongside new rights around pets and decoration, this is another positive step forward for renters in Scotland.”

David Melhuish, director of the Scottish Property Federation, said the bill "will be a disappointment to those seeking to build new rental homes in Scotland". Investors in the build-to-rent sector, he said, "will remain uncertain of what the future rent control system will look like until potentially late 2026".

He continued: “Investors will also be greatly concerned to see rent controls extended to properties that go back onto the market after a sitting tenant has left. This could make it harder for property owners to fund major improvements, including energy efficiency measures, to their properties between tenancies.

“Should the legislation be approved by the Scottish parliament unamended, we risk repeating the damaging effects of the emergency rent freeze legislation passed in 2022 when investment for Scottish rental housing was frozen, deterred, or diverted to projects outside of Scotland."