Scotland’s rent controls set for 2027 as industry bodies call for more guidance

Rent controls in Scotland will be introduced in phases and are not expected to take effect until mid-2027.

Under the Housing (Scotland) Act, councils must first assess rent conditions in their areas and submit proposals for designated rent control zones to the Scottish Government by 31 May 2027.

Two industry bodies told Property118 that flexibility will be crucial in the design of rent controls, and that certain exemptions could help ease concerns among landlords.

Certain rent control exemptions

Under the Act, in designated rent control areas, annual rent increases will be limited to CPI + 1%, up to a maximum of 6%.

The Scottish government has already announced several exemptions, including for build-to-rent properties, though critics argue this could result in a “two-tier rental market”.

The government also intends to exempt mid-market rent properties, homes aimed at low- to moderate-income households who do not qualify for social housing but struggle with full-market rents, provided their rents have been below market rate.

Properties that are new to the rental market, such as a flat purchased from an owner-occupier that has never been rented out before, will also be exempt.

In these cases, landlords can set the initial rent at full market value. Once a tenant moves in, however, the property becomes subject to future rent-increase caps.

Flexibility will be essential to the Scottish private rented sector’s future success

Scottish Association of Landlords chief executive John Blackwood said the government must take a flexible approach to rent controls and welcomed the exemption for mid-market properties.

He tells Property118: “Flexibility will be essential to the Scottish private rented sector’s future success, which will require that some properties be exempt or included in certain measures under specified circumstances.

“Exempting new-to-market properties if and when rent controls would otherwise apply, along with those for which the rent has been held below the market rate, adds to that adaptability and will help the Scottish private rental sector be more dynamic as a result.

“SAL has been proud to be a constructive partner throughout the life of the Housing Act, and an active campaigner for these sensible exemptions; we will continue to work with all stakeholders across government and housing to ensure that we have a private rented sector that works for all.”

Detailed guidance is needed from the Scottish government

Timothy Douglas, head of policy at Propertymark, said the Scottish government must offer more detailed guidance to landlords.

He tells Property118: “Propertymark has long made the case for a fairer tax regime for private landlords as well as a level playing field for landlords against institutional investors.

“Under the Housing (Scotland) Act 2025, and as we await the results of the Scottish government’s consultation, additional regulations that would allow for rent increases in Rent Control Areas where the rent has been held consistently below market rent or where there has been investment in improvements to the quality of the rented property would help to mitigate these concerns.

“It is logical that there are measures allowing for landlords to set market rents when purchasing property with vacant possession, but detailed guidance is needed from the Scottish government to support setting these rents appropriately and agents understand when marketing property within and outside of a Rent Control Area.”

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