The Housing Bill is a key component of the government’s plan to address the housing emergency. Key measures include: a system of long-term rent controls, protection against illegal evictions, the implementation of ‘Awaab’s Law’ in Scotland and the right to keep a pet and to redecorate as a tenant.

It also includes measures for relevant public bodies to ask about a person’s housing situation and take action to prevent them from losing their homes.

Originally promised in the 2021 Bute House Agreement between the SNP and the Scottish Greens, the Housing Bill was intended to establish a national rent control system. But in a recent letter to Holyrood’s Local Government, Housing and Planning Committee, housing secretary Màiri McAllan revealed a shift in strategy: local authorities would be allowed to decide whether to implement rent controls in their areas, while build-to-rent and mid-market properties would be exempt altogether.

Ahead of the vote, tenants from across Scotland gathered outside the Parliament in a major show of public opposition to the proposed exemptions.

Organised by the tenants’ union Living Rent, the rally aimed to pressure MSPs to back stronger protections for renters, including inflation-capped rents that apply between tenancies, a key measure campaigners say is vital to ending exploitative rent hikes.

However, activists say the bill has been “gutted of its vision and potential”, particularly after the housing secretary’s recent announcements on exemptions. Ms McAllan also indicated the government may allow above-inflation rent increases in cases where rents have been kept below market rates or where landlords have made improvements to properties.

Living Rent says the proposed exemptions would create a “two-tier system” of renters, undermining the bill’s effectiveness and favouring landlords and developers over tenants.

Ruth Gilbert, national campaigns chair for Living Rent, said: “Rent caps are a vital step forward for tenants. But these rent caps are not strong enough. This bill has been gutted of its vision and potential and this government has totally conceded to the demands of landlords, watering down rent controls at every step of the way. 

“With the exemptions suggested, this government will create a two tier system of rent controls that will leave huge portions of the private sector without recourse to challenge rent hikes. 

“This bill also commits to above inflation rent increases. This will ensure that tenants continue to face  yearly unaffordable rent increases when for most, the rent is already exacerbating poverty. 

“The double whammy of exemptions and allowing above inflation rent increases show that, yet again, this government is prioritising the profits of landlords and developers over tenants’ right to affordable homes. In the middle of a housing emergency, this is nothing short of a disgrace.

“Without strong rent controls, the Housing Bill will do little to ease existing inequalities and lower child poverty. We thought the Scottish Government was committed to a fairer society. Increasingly, all tenants see is their commitment to protecting the profits of the powerful.”

Despite public support, rent controls face strong opposition from the Scottish Conservatives. Speaking ahead of the Stage 3 debate, shadow housing secretary Meghan Gallacher slammed the SNP’s plan to make rent controls permanent, calling it “reckless” and a threat to housing supply.

“Making this botched measure permanent will drive away investors, slash the available housing stock for tenants and cost the sector billions,” she said.

“It’s been over a year since the nationalists declared a housing emergency, which stemmed from their cuts to the affordable housing budget and introduction of rent controls. It defies belief that their response to the crisis is to do double down on one of its principal causes.

“Amid record homelessness figures, the last thing vulnerable Scots need is a policy that is proven to reduce the number of rental properties on the market.”

Ms McAllan cited the need to encourage housing development and expand housing supply during the emergency, despite admitting the “divergence of opinion” in consultation responses.

Speaking to the Press Association, Ms McAllan said: “We need more houses. The reason I took that decision is because it was based entirely on investment and investment leading to new stock.

“It was a clear recommendation of the Housing Investment Task Force that, if you want investment in mid-market rent, which comes under the bracket of an affordable home, then you have to allow the conditions to be right.

“So we have more availability, this will drive affordability, making it easier for people to have choice – we know that’s how it works in a market.”

Asked if there is a risk the market could be squeezed with more renters seeking rent controlled properties rather than those which have been exempted, she added: “I am expanding the market so that in years to come Scotland would have a much greater supply of housing stock, a mixture, because we need a mixture – social, mid-market rent, build-to-rent, that is going to increase availability, obviously, and increase affordability, which is one of the main objections.”

‘Gold standard’ homelessness system

Ahead of the debate, Ms McAllan moved to highlight the Housing Bill’s homelessness prevention measures.

She said: “We have the opportunity to create a gold standard homelessness system in Scotland by passing the Housing Bill. We already have some of the strongest homeless rights in the world, however, this legislation will go even further to protect and support people threatened with homelessness.

“The actions we have taken in just the past month demonstrate our determination to tackle the housing emergency. A few weeks ago, I published an Action Plan backed by up to nearly £5bn and including a major affordable house building programme. This week, we are set to pass groundbreaking legislation to prevent homelessness, improve standards in rental homes and keep rents affordable for tenants.

“The Housing Bill also enables us to implement ‘Awaab’s Law’ in Scotland, which will ensure no family in Scotland has to rent an unsafe home with damp and mould. It will also ensure rents remain affordable for tenants through a system of long-term rent controls.

“This will be a landmark bill and I hope colleagues from across parliament can come together to ensure it is passed at the end of the Stage 3 proceedings.”

The final Stage 3 debate on the Housing Bill begins today, with a vote expected on Wednesday.