Scottish Government opens Housing Bill consultation on PRS rent control exemptions

The Scottish Government consultation on exemption from Private Rented Sector (PRS) rent controls in the Housing Bill was published yesterday (23 April).

The consultation is available here and will remain open until 18 July 2025: Housing (Scotland) Bill - Scottish Government consultations - Citizen Space

Consultation content:

This is an open consultation that seeks views on i) how the powers within the Bill could be used to exempt certain types of properties from rent control and ii) the circumstances where rents could be increased above the level of any introduced rent cap. A Scottish Government amendment proposed in October 2024 limits rent increases to Consumer Price Index (CPI) +1%, up to a maximum of 6%.

The consultation includes the following key questions for our membership:  

Chapter 1- properties exempt from rent control area restrictions, asking:

• If MMR should be exempted from the rent controls within the Housing Bill
• Whether we agree with the criteria for MMR (including RSL subsidiaries and other orgs in receipt of SG funds)
• Whether we agree with requirements on the level of rent charged.
• Any other types of housing that should also be considered as part of an exemption for MMR property.

Chapter 2 -  properties subject to modified rent control area restrictions

• Circumstances in which a landlord of a property in a rent control area could increase the rent by more than the level of the rent cap for particular properties (e.g., improvements, or where a property is let at a rent significantly below market rates).

Chapter 3- ending joint tenancies in the PRS (related in particular to protecting victim-survivors of domestic abuse).

• What information and requirements should be included in a 2-month pre-notice (including serving and delivery requirements).

The consultation also asks how a landlord should confirm that they are exempt and how a tenant would verify that/whether a landlord should be required to communicate to a tenant that the property is exempt.

SFHA response

SFHA will respond on behalf of our members to seek an exemption for MMR provided by our sector. To discuss the consultation and our response, or to participate in SFHA’s MMR working group review, please contact SFHA Policy Lead Annabel Pidgeon, apidgeon@sfha.co.uk.

We also have a short stakeholder survey to collect information from MMR providers that we can use to inform our consultation response. This survey is a repeat of one that was administered in 2024. We plan to use the results to demonstrate further changes to the pipeline in the absence of an exemption for MMR on the face of the Bill and the urgent need for certainty. If you have not already, please complete our 9-question survey here.

Scottish Government introductory comments:

Social Justice Secretary, Shirley-Anne Somerville MSP, said about the consultation, “We have published this consultation as part of our ongoing engagement with those who will be affected by rent control.  The responses will help us strike the right balance between supporting tenants, whilst ensuring the rights of landlords are protected and we continue to support investment in the rented homes we need.” The full Scottish Government press release is available here.

Paul McLennan MSP, Minister for Housing introduced the consultation with an acknowledgement that during engagement, they have “heard calls for properties let for mid-market rent and build to rent properties to be exempted from rent control areas, including from the Housing Investment Taskforce. We now seek views on exemptions for these categories of property.”