Rent control proposals outlined in the Housing (Scotland) Bill will be amended to better explain how rents will be capped in new Rent Control Areas (RCSs).
The Bill, which is currently passing through Parliament, makes a number of recommendations about tenancies, evictions, rent increases and the rights of tenant to personalise their properties and keep pets.
However, the proposals provided little information on how rent caps would be implemented under the new legislation. Housing Minister Paul McLennan has told the house that more clarity will be given in the amendment.
Under the new proposals, rents in RCAs will be capped at the Consumer Prices Index (CPI) plus 1% up to a maximum increase of 6%. The cap is proposed to apply both during and in between tenancies. RCAs will be designated by Ministers based on assessments by local authorities.
Further consultation with tenants and landlords is expected in early 2025 to explore exemptions from rent controls and permitted increases above the rent cap. The new legislation is unlikely to become law before 2027, with some elements taking longer to implement due to the need for secondary legislation.
