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Local Government, Housing and Planning Committee 24 February 2026 [Draft]

24 Feb 2026 · S6 · Local Government, Housing and Planning Committee

Item of business

Subordinate Legislation

Private Housing Rent Control (Exempt Property) (Scotland) Regulations 2026 [Draft]

McAllan, Màiri SNP Clydesdale Watch on SPTV

Good morning. I thank the committee for the opportunity to give evidence on the regulations.The Housing (Scotland) Act 2025 introduced a long-term system of rent controls for Scotland. It is essential that those protections are in place for tenants and that they are balanced in respect of landlords’ property rights. It is also important that they support continued investment in new, long-term rented homes. In a housing emergency, we must increase the availability and, in turn, the affordability of rented housing in Scotland. As a Government, we have worked hard to get that balance right. During the passage of the bill, we engaged with MSPs across parties and we carried out a full public consultation to gather views on how to create the right exemptions from rent controls. Our housing investment task force also considered how exemptions could support future investment in rented housing.Since the 2025 act was passed, we have continued to engage with stakeholders, including local authorities, the Scottish Federation of Housing Associations, the housing investment task force, and landlord and tenant representative groups. We have now set out these exemptions with the intention of providing clarity, addressing reported barriers to investment in new rented housing, and maintaining the attractiveness of Scotland as a place to invest.I will give a touch of detail. The proposed exemption for mid-market rent will apply only in cases where a restriction on rent increases is already in place. That could be where public funding creates a direct or indirect restriction on increasing the rent, or where the terms of the tenancy speak to such a restriction. Layering additional rent control measures on top of that would create unnecessary complexity and would not, in fact, bring any benefits to tenants. Whether the restriction is in place via funding or the tenancy agreement, rent increases for the property must be limited to a specified level.The exemption requires that rents remain at or below the median for properties of a comparable size in that broad rental market area, as published on an annual basis by the Scottish Government. Where the landlord fails to keep their rents below that level, they will no longer qualify for exemption from rent control.The exemption for build-to-rent properties is aimed at supporting much-needed investment in new purpose-built homes for rent and the retention of those homes in the private rented sector. Under this exemption, groups of six or more residential properties that share the same planning permission, that are owned by the same person or group and that were constructed after the date of the announcement will be exempt. As well as new builds, properties that are converted for residential use and derelict properties that are returned to use will be included.That exemption will no longer apply where the nature or use of the property is changed. For example, if the property was used as a short-term let or occupied by the owner, it would no longer be eligible for exemption. That is about ensuring that the exemption acts to support the long-term supply of rented homes.Landlords of exempt properties in rent control areas will need to confirm their exempt status. We are working to ensure that that administrative process is smooth and that tenants know whether a property is exempt and understand their rights in those circumstances. The verification process for that will be set out in due course.In summary, the regulations will remove the perceived barriers to investment in mid-market and build-to-rent properties, which will support future investment and help to ensure a strong supply of rented properties. Most importantly, they strike the right balance between tenant protection and landlords’ property rights.

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Local Government, Housing and Planning Committee 24 February 2026 [Draft]

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