On 30 September 2025 Holyrood passed the Housing (Scotland) Bill. To say the Bill’s passage through parliament was turbulent is something of an understatement. Since its introduction some eighteen months earlier it passed through the hands of three Ministers and was subject to hundreds of proposed amendments from all sides of the political spectrum. So what does the Bill in its final form provide for?
At first glance much of the Bill may seem largely the same as the version introduced in March 2024 (see Long awaited Housing Bill introduced to Scottish Parliament – Gillespie Macandrew). However, there have been some significant changes. For example, the provision for limited rent controls in designated ‘rent control areas’ remains. However, the ‘permitted rate’ being the amount by which controlled rents may be increased has been set as either the lower of CPI plus 1% or 6%. In addition, the Bill now provides certain types of properties to be exempt from rent controls including build to rent and mid-market homes.
However, and it is quite a big however, build to rent and mid-market homes are not defined in the Bill itself. Rather, these definitions will be set out in secondary legislation at some future point. Likewise, secondary legislation will also provide the necessary detail for the parts of the Bill that permit tenants to keep pets and carry out certain works to the properties they rent. Unless, or until, the secondary legislation appears, how these new rights will operate in practice is unclear.
The Bill as passed also includes some entirely new provisions. These include, the period during which a family member must reside with a tenant in order to be eligible to succeed to the tenancy upon the death of the tenant has been shortened from 12 to 6 months. In addition, the Bill also amends the definition of the ‘Tolerable Standard’, which is the statutory standard to which all residential property must conform., The amendment to guidance issued by the Scottish Ministers specifies the circumstances in which a house is to be considered to be substantially free from rising or penetrating damp. This is effectively the Scottish version of ‘Awaaabs Law’ which will require landlords to address issues of damp and mould within a specified time. The Bill also amends the Local Government (Scotland) Act 2003 to allow for a more aggressive application of council tax to an unoccupied property.
The circuitous process of the Bill through Holyrood and the amendments made reflect a growing recognition that the housing emergency is largely due to the demand for houses far exceeding the supply. The softening of the level of rent control and exemptions for build to rent and mid-market homes were intended to reassure and encourage investment. However, it remains to be seen if that will effective.
The Bill has been passed but has not yet become law. That requires Royal Assent. Interestingly, one amendment to the Bill, the new Section 51G, obliges Ministers to assess the impact of the new law on rural and island communities 12 months after the Bill receives Royal Assent suggesting that policy in this area is still evolving. With an election to Holyrood next May, uncertain economic weather ahead and divergent political views on how best to tackle the housing problem, the only certainty is that things are going to remain uncertain for the time being.
If you would like to discuss the Housing (Scotland) Bill and its implications further, please get in touch with a member of our Land & Rural Business team.
