Passed by 89 votes to 28 after MSPs debated around 400 amendments at the Bill’s final stage, the wide-ranging legislation introduces a framework for long-term rent controls, alongside provisions on tenant protections, homelessness duties, and the implementation of ‘Awaab’s Law’ to tackle damp and mould.

Rent controls

Under the bill, ministers will be able to designate parts of the country as Rent Control Areas. Expected to be introduced by 2027, landlords within these zones may only increase rents in line with inflation (as measured under the Consumer Price Index) plus one percentage point, capped at 6% per year.

After a change announced in recent weeks, the system will not apply to mid-market rent, build-to-rent properties, or student accommodation, with ministers arguing that blanket controls risk suppressing much-needed housing investment. In some cases, rents will be allowed to be increased above the rent cap.

Temporary rent freezes, introduced during the pandemic and extended during the cost-of-living crisis, lapsed earlier this year. The new bill marks the first step towards a permanent framework, though many of the details will be set out in secondary legislation.

‘Ask and Act’

The legislation will introduce duties on public authorities, including councils, the police and the health service, to ensure people do not become homeless - a provision dubbed “ask and act” by ministers.

They will have to ask about the housing circumstances of those they interact with and provide support, or refer them, to their local authority.

Councils will be required to act sooner to prevent homelessness by providing support to households threatened with homelessness up to six months before homelessness appears imminent, rather than the current two months.

‘Awaab’s Law’ and other measures

The bill will also broaden ministers’ powers to implement ‘Awaab’s Law’, which will ensure landlords promptly address issues that are hazardous to tenants’ health, starting with damp and mould.  

The legal measure was named after Awaab Ishak, who died in 2020 after being exposed to mould in his home in Rochdale in north west England. The law will now be implemented in Scotland’s rented sector from March 2026, subject to Parliament’s agreement.

Thanks to an amendment put forward by the Scottish Greens, the cap for councils to increase Council Tax on second and empty homes has been removed.

According to the party, the current doubling of the extra charge paid when buying additional properties and doubling Council Tax on second homes has already resulted in the number of second/holiday homes across Scotland decreasing by 2500 in a single year.

Allowing Council Tax to be raised on second and empty homes without a cap will free up more properties for young people and families in need of a permanent home in communities such as these, the Greens argued.

Other measures in the bill include changes to the way damages for unlawful eviction are calculated, and new rights for private and social housing tenants to request to keep a pet, while private housing tenants are to be allowed to make changes to the property they are renting.

The bill will also update the definition of domestic abuse in housing legislation and force social landlords to set out a policy to support tenants at risk of homelessness because of domestic abuse.

Under the legislation, courts will have to consider whether to delay when an eviction is carried out.

New provisions will also allow the government to use unclaimed deposits to fund support for private tenants, and enable a single joint tenant to end a joint tenancy.

Housing emergency

Last year, the Scottish Government followed many local authorities in declaring a housing emergency due to a severe shortage in social homes and rising private rent costs.

Yet figures released last month showed the number of households living in temporary homeless accommodation in Scotland has reached a record high. And just yesterday, the latest Quarterly Housing Statistics revealed that social sector starts dropped to their lowest level since data collection began in 1997.

Housing secretary Máiri McAllan announced a housing emergency action plan last month, pledging up to £4.9 billion over the next four years to deliver about 36,000 affordable homes.

However, research commissioned by the Scottish Federation of Housing Associations (SFHA), Shelter Scotland and CIH Scotland found that £8.2bn would need to be spent over the next five-year term of the Scottish parliament to meet housing need.

Political reactions

The housing secretary said the reforms would strengthen protections for tenants while balancing the need for continued investment.

“Passing the Housing (Scotland) Bill is a landmark moment for how we prevent homelessness in Scotland,” Ms McAllan said. “Whilst we already have some of the strongest homelessness rights of any country, we will now go even further to a create a gold-standard homelessness prevention system.

“Passing this groundbreaking legislation, coupled with the Housing Emergency Action Plan published earlier this month, shows just how serious we are about tackling Scotland’s housing crisis.

“Families across Scotland will have the confidence that their rented home will be free from damp and mould as we take forward work to implement ‘Awaab’s Law’. We will now work at pace to lay regulations to implement these protections from March.

“Scotland has already led the way in protecting tenants and providing strong rights when people are homeless and now the Housing Bill will revolutionise homelessness prevention and ensure rents are kept affordable.”

The Scottish Conservatives opposed the Bill, branding the rent control provisions “reckless” and warning they will deter development.

Spokeswoman Meghan Gallacher MSP argued: “If returns are capped permanently, if revenue streams are constrained, then the very incentive to build disappears. It is a simple economic fact – rent controls do not build homes, they prevent them.”

Scottish Labour backed the bill but described it as a “very small step forward,” while the Scottish Greens hailed it as a victory, saying it delivered on their long-held commitment to rent regulation.

Scottish Labour’s housing spokesman Mark Griffin said: “We will support this bill, because it does contain improvements on the current system, but it is not the transformative legislation that Scotland’s housing crisis demands.”

Scottish Greens housing spokeswoman Maggie Chapman added: “A basic human right to live in a warm, safe home has become a platform for profiteering. This bill and the rent controls it introduces is the first stage of the new deal for tenants that the Scottish Greens promised.”

Sector reactions

Unsurprisingly, the housing and property sectors remain divided over the potential impact of rent controls.

CIH Scotland said rent controls must be “workable” and accompanied by investment in standards and enforcement.

“There is significant work to do in ensuring that the new rent control measures passed are workable,” said national director Callum Chomczuk. “We think that there needs to be a new focus on improving standards in the Private Rented Sector (PRS) by supporting professional development for landlords, supporting tenants to uphold their rights and resourcing more proactive enforcement from local authorities. This is why we’re working with partners to develop the scope for what we believe should inform a future Scottish government PRS strategy.”

Callum Chomczuk also stressed that embedding homelessness prevention would require cultural change and resources, not just legislation.

He said: “The introduction of a duty for social landlords to develop a domestic abuse policy is a significant step towards addressing domestic abuse, the main cause of homelessness for women, while the amendment to the Scottish Social Housing Charter (SSHC) to ensure support is provided by social landlords for victims of domestic abuse will help realise this.

“Our research has shown that the presence of a domestic abuse policy alone does not necessarily lead to better outcomes. Social landlords need the right policies and a focus on improving housing outcomes. The combination of a mandatory domestic abuse policy and requirements under the Scottish Social Housing Charter will help victims make the choices that suit them, whether that is to stay in their existing home or to move to somewhere they feel safer.

Callum added: “The Scottish government’s commitment to embedding homelessness prevention across the public sector has the potential to change our approach to homelessness. But it will take time to realise meaningful culture change, and resources are required to ensure that interventions are effective. In the meantime, the Scottish Government must continue to invest in Rapid Rehousing Transition Plans which are already laying the groundwork for prevention. Ultimately, investing in prevention will lead to better outcomes for individuals and longer-term savings for a range of government services.”

Living Rent, Scotland’s tenants’ union, called the bill an important but diluted step.

National campaigns chair, Ruth Gilbert, said: “The housing bill is an important step forward but given the extent of the housing emergency it is the bare minimum tenants need.

“This bill would not exist without the hard work of tenants fighting for it. However, over the last few months, the government has capitulated to the demands of landlords and has gutted the housing bill of key progressive mechanisms.

“As a result, the bill is riddled with exemptions and loopholes that will see huge numbers of tenants unable to challenge out of control rents.

“If MSPs are serious about ending the housing emergency, they must take urgent steps to deliver emergency protections for tenants now until rent controls take effect in 2027 and strengthen rent controls by removing all exemptions.” 

Scottish Property Federation (SPF) interim director Robin Blacklock said the debate had already created damaging uncertainty and stalled investment.

“There are clear lessons for the future, especially the need to work closely with industry to avoid the disruption as seen in the early stages of this bill,” he warned. “However, we welcome the recent shift in approach by the Scottish Government and the recognition of the vital role that the private sector must play in tackling Scotland’s housing emergency.”

Robin added: “The passing of the bill must be the start of a new approach, and we need to see tangible action. 

“Despite the prolonged period of uncertainty, we have found a balance between attracting investment and protecting residents: inflationary linked uplifts in Rent Control Areas protects tenants with the CPI+1% mechanism capped at 6%; while the exemptions from rent controls for the Build to Rent sector and mid-market rent housing recognise the need for large-scale investment into the sector.

“While we are moving towards a position which will see investment returning and new homes being built, we now urge the Scottish Government to finalise the detail of the secondary legislation to create a solid base for this investment. We also call on the government to commence the process of collecting and collating robust data on the rental market to avoid failures of the past and to ensure the credibility and efficacy of the now-enacted legislation into the future.”

“While the CPI+1% model capped at 6% offers a more balanced mechanism, the exemptions for Build to Rent and mid-market homes are crucial to attracting investment. The government must now act quickly to finalise secondary legislation and collect robust market data.”

Scottish Land & Estates (SLE) welcomed the recognition of rural challenges but warned against “overregulation” that could push landlords out of fragile rural markets. Senior policy adviser Anna Gardiner urged a rural impact assessment before the measures are rolled out.

“A proportionate and flexible approach to the private rented sector is essential to maintain both strong tenant protections and a sustainable supply of homes, particularly in rural areas where the market is already fragile,” she added. “We believe more should be done to secure a sustainable, fair, and resilient private rented sector that meets the needs of both tenants and landlords throughout Scotland.”

Citizens Advice Scotland said the bill marked a “significant step forward” but warned implementation must deliver real affordability for tenants, noting that average rent debt among private renters had risen 14% in the past year.

Maeve McGoldrick, head of policy and communications for Crisis Scotland, described the vote as a “landmark moment” in Scotland’s journey towards ending homelessness.

She said: “We already have strong rights in place for people experiencing homelessness, but as we see from our frontline services, we need to do far more to prevent people losing their home in the first place. That means allowing people entering a housing crisis to get help earlier, so they can get support before it is too late.

“At Crisis, we have been calling for new protections to stop people being forced from their homes for years. These new changes, contained in the Housing Bill, hold the potential to create a truly world-leading homelessness system, where everyone has a safe, secure place to live.”

Measures to make it easier for tenants to keep pets were welcomed by two of the UK’s largest animal charities.

The Dogs Trust and Cats Protection have jointly campaigned for years to address the difficulties faced by renters with pets. More than 2,600 people supported the Dogs Trust campaign by writing to their MSP, while over 1,300 Cats Protection supporters responded to the housing consultation, calling for cat-friendly rented homes. Dogs Trust is also delighted that, following the success of its supporter action campaign, Maggie Chapman MSP’s amendment to reduce the time that a tenant must wait to get a response to a pet request from 42 to 30 days was passed by MSPs.

Owen Sharp, chief executive of Dogs Trust, said: “The Housing (Scotland) Bill becoming law will mean that the benefits of pet ownership are no longer exclusive to homeowners, which is excellent news and is something we have campaigned on for many years.

“While there’s no doubt this is a massive step forward in improving the availability of pet-friendly accommodation, there is still more to be done. Sadly, one of the most common reasons we see dogs handed in to our rehoming centres is a change in the owner’s living circumstances and a lack of available pet-friendly accommodation.

“We urge the Scottish Government to work with the private and social rental sectors to increase confidence in renting to pet owners so that they are not disadvantaged when seeking suitable accommodation.”

Alice Palombo, advocacy and government relations manager at Cats Protection, added: “This new law ends blanket no-pet policies and will help to unlock the joys of pet companionship for so many people who rent their homes. We are delighted to have been at the forefront of this campaign, together with our friends at Dogs Trust and our supporters.

“Pet ownership can bring so much to people’s lives - whether it’s providing company for older people, helping children learn about responsibility or being a comfort for people with health conditions. For victim-survivors of domestic abuse, pets are often a source of emotional support, and fear of leaving them behind can prevent people from seeking safety. By recognising the importance of keeping people and their pets together, the Housing (Scotland) Bill takes a compassionate and practical step forward.

“For too long, pet ownership has been a privilege largely reserved for homeowners, not renters. It is right that this pet privilege has finally been brought to an end. We will continue to work with the Scottish Government to encourage more pet-friendly rented homes and ensure that the bond between people and their pets is protected.”