Scotland Mulling Rent Control Exemptions. Are You Going to be Impacted?

The Scottish Government has faced significant criticism over its proposed rent cap policy, prompting it to seek consultation with landlords on potential exemptions for those who have made fair and active investments in their properties. This consultation is part of the Scottish Housing Bill.  

While the government had argued that the policy would create “a fairer and better-regulated” rental market, many, including the Scottish Association of Landlords (SAL), had voiced concerns that rent caps could backfire and ultimately reduce the supply of rental properties.

This article explores what these consultations mean for landlords and how the proposed changes could affect property owners across Scotland.

Rent Caps Under Fire: Critics Warn of Unintended Consequences

Several critics have warned that the proposed rent caps could reduce the supply of private rental properties and push up rental prices even further. They believe the policy could do more harm than good for both landlords and tenants.

Additionally, the introduction of a rent cap may cause property developers to shy away from constructing new rental homes, further tightening supply and inflating rental charges.

Rental Control Exemptions on The Table

Under the proposed consultation, landlords may be allowed to raise rents beyond the rent cap if they have made significant improvements to their properties or if their rents have consistently been below market rates.

This consideration ensures that landlords who provide affordable housing aren’t unfairly disadvantaged. It also protects landlords who are committed to offering lower rents to tenants who are financially struggling.

Potential Legal Risks: Changes to Joint Tenancies

As part of the broader rent control consultation, the Scottish Government is also considering changes to the process for ending joint tenancies. Under current legislation in Scotland, a joint tenancy can only be terminated if all tenants agree and sign a "Notice to Leave" with 28 days' notice. The government argues that this can trap some tenants in rental agreements if others refuse to leave, particularly in cases of domestic abuse.

To address this, the Scottish Housing Bill proposes allowing a single joint tenant to end the tenancy independently. While this provision would offer more flexibility for tenants, it could lead to unintended consequences for landlords. If one tenant leaves, the remaining tenants may be forced to cover the full rent.

Conclusion: Have Your Say Before Rent Control Becomes Law

This consultation opportunity is a key moment for landlords across Scotland to ensure their concerns are reflected in the final regulation. With rent control set to have a long-lasting impact on the housing market, your input is more important than ever.

The consultation closes on 18 July 2025. Don’t miss the chance to have your say and protect your interests.