Scottish Housing Bill gains Royal Assent but critics warn of damage to PRS

The Scottish Conservatives have labelled the Scottish Housing Bill a “disaster for the private rented sector” as it gains Royal Assent.

The bill, which passed by 89 votes to 28, has now become an Act of Parliament. Secondary legislation will be introduced to bring parts of the Act into effect in stages, with the first measures expected in 2026.

Under the Act, ministers will have the power to introduce a system of long-term rent controls, although build-to-rent providers will be exempt. Tenants will also gain the right to request permission to keep a pet, and landlords will not be able to unreasonably refuse such requests.

Act will be a disaster for the sector

Scottish Conservative shadow housing secretary, Meghan Gallacher MSP, warns the Act will damage the private rented sector and cause landlords to leave the market.

She said: “The Act will be a disaster for the sector. It will deter investors and do nothing to address the housing emergency that has occurred on the SNP’s watch.

“Housebuilding is in freefall under the nationalists and now it will be even harder for Scots to own a home of their own. We submitted constructive amendments to improve this bill, but the SNP pandered to the extremist Greens instead.

“The Scottish Conservatives remain opposed to rent controls, which is why we ultimately voted against this bill.

“We will keep pushing the SNP to stop playing politics and focus on delivering real solutions to tackling the housing emergency.”

Politicians in particular have a responsibility to stop pitching landlords’ and tenants’ interests against each other

Scottish Association of Landlords chief executive, John Blackwood, tells Property118 politicians must stop pitching landlords and tenants and work with the private rented sector

He said: “This is a historic moment in the history of Scotland’s housing sector and its private rental sector in particular.

“SAL has been proud to work alongside our productive and professional stakeholders throughout the Bill’s passage through Holyrood.

“The challenge ahead for those of us who want a housing sector that works for everyone is now to make sure we get the regulations right.

“Politicians in particular have a responsibility to stop pitching landlords’ and tenants’ interests against each other and to commit to building a sector that works for everyone

Reforms are implemented in a way that is evidence-based and fair to landlords and tenants

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

Timothy Douglas, head of policy and campaigns at Propertymark, says the government must provide more information to landlords on how it plans to implement rent control areas.

He said: “Royal Assent for the Housing (Scotland) Act marks another significant milestone for the private rented sector. Local authorities across Scotland will now start to prepare and submit reports to the Scottish government on the rent conditions in their localities by the end of May 2027, which could lead to the introduction of Rent Control Areas.

“Letting agents need to work with landlords to prepare and comply with requests for information from councils as well as understand how the new rights for tenants in terms of pets and making changes to rented property will impact how they manage tenancies.

“Further clarity is still needed from the Scottish government on exemptions to Rent Control Areas and guidance to support the changes. Propertymark stands ready to work with the Scottish government to ensure the reforms are implemented in a way that is evidence-based and fair to landlords, tenants and letting agents.”

What responsible landlords should know

With the Scottish Housing Act now in force, attention turns to how and when its various provisions will take effect. Responsible landlords will recognise that most measures will not bite immediately, but preparation and record-keeping will matter as secondary legislation is phased in from 2026 onwards. The immediate focus should be on understanding new rights for tenants, particularly around pets and property changes, and anticipating the data requests councils may issue when assessing rent conditions locally.