Scotland introduces new rent control framework under 2025 Act

The Housing (Scotland) Act 2025 has introduced a new regulatory framework for the private rented sector in Scotland. Under this legislation, Scottish Ministers hold the power to designate specific regions as Rent Control Areas based on assessments of local rent conditions.

Local authorities are required to conduct periodic assessments of rent levels and increase rates within their jurisdictions to inform these designations. These assessments must be completed every five years and are intended to provide an evidence-based foundation for any rent control interventions. Councils are tasked with submitting proposals for designated rent control zones to the Scottish government by May 31, 2027.

While the government maintains that these cyclical assessments will ensure interventions are grounded in up-to-date information, industry bodies have criticized the guidance. Critics argue that the current approach fails to address industry concerns and may not effectively resolve the existing housing shortage.