Some key dates have been announced, with Awaab’s Law due to be applied to the private rented sector (PRS) from March 2026 and councils obliged to complete assessments of local rent conditions by 31 May 2027.
Representing property agents
Propertymark’s members are frustrated that, despite Scotland’s severe shortage of rental homes, the Bill focuses on rent controls rather than increasing housing supply. With Local Housing Allowance (LHA) rates frozen, punitive taxes on landlords, and the Additional Dwelling Supplement now at 8%, the Scottish Government has not introduced policies to incentivise investment in the Private Rented Sector (PRS).
These views were echoed by MSPs during debates on the Bill, with Meghan Gallacher, Conservative MSP, drawing attention to the risk that billions of pounds of investment will be lost as a result of permanent rent controls, worsening the housing emergency.
Propertymark will continue to engage with Ministers and stakeholders and closely monitor commencement orders and draft regulations as they are published.
Changes to the letting agent register
In future, an application for letting agent registration will have to include information on any person who owns 25% or more of the relevant partnership, company, or body. A refusal or removal from the public register will now be flagged for three years, up from the current twelve months.
There is also a new ground to revoke registration where an agent no longer exists. These changes are designed to increase transparency and raise the stakes for governance and compliance.
Rent Control Areas (RCAs) and exemptions
Propertymark has consistently opposed the introduction of rent controls, and although we remain concerned about their long-term impact, it is positive that Ministers listened to our calls for greater clarity and introduced less restrictive proposals. The Bill now states that in any designated rent control area, annual increases will be capped at CPI+1% up to a maximum of 6%.
The Scottish Government intends to bring forward regulations that will exempt mid-market rent and build-to-rent properties. Propertymark is clear that exemptions must go further to ensure fairness between individual landlords and institutional investors. Landlords who make significant improvements to their properties and those who have kept rents affordable over time should also be exempt from controls.
When an RCA ends, caps on rent increases should be removed between tenancies to allow upgrades such as redecorating, replacing furniture, or installing energy-efficient measures. Failure to encourage investment, particularly in older properties, will risk large areas of rental stock falling into disrepair, with landlords unable to cover their costs.
Information‑gathering must be fit for purpose
Existing legal powers to designate rent pressure zones have not been used since they became law in 2016 due to a lack of adequate rent information. If RCAs are to have the impact the Scottish Government intends, it is essential that decisions are based on appropriate and reliable data.
Propertymark advocates a national approach to data collection and analysis, led by the Scottish Government, which prioritises understanding the reasons behind rent increases. This could be achieved by amending the Rent Notice under the Private Residential Tenancy to include actual rents paid, not just advertised rents, allowing officials to monitor trends at local and national levels.
Clarity needed on pets and changes to homes
Sensible guidance is required for landlords and agents to ensure consistency in decision-making when tenants ask to keep a pet or to carry out work to their PRS home.
There must be a clear understanding of when permission for pets can be ‘reasonably’ refused, and what kind of conditions a landlord can apply; for example, limiting the number or type of pets that can be kept in a property, or requiring a tenant to pay for professional cleaning when their tenancy ends.
The Act creates two categories for changes that can be made to a PRS property: Category 1 works that can be carried out without consent, and Category 2 works that require consent, which cannot be unreasonably refused. The detail of which works fall into each category, and what counts as “reasonable”, will be set by Ministers after consultation.
Preparing for transition
Propertymark will keep members informed as secondary legislation and regulations are developed and provide resources to help letting agents comply with new requirements.
Agents can get ready for the legislation at this stage by updating adverts and onboarding templates for RCAs, building CPI‑linked initial‑rent checks into systems, setting 30‑day decision workflows for pet and alteration requests, and refreshing training on eviction timelines and the heightened consequences of unlawful eviction.
Whilst we don’t agree with rent control, we are pleased that the Scottish Government listened to our concerns and amended the legislation so where rent controls are introduced in designated areas annual rent increases will be capped at the Consumer Price Index (CPI) plus 1%, with a maximum annual increase of 6%.
Furthermore, we continue to make the case for a fairer tax regime for private landlords with the Scottish Government currently reviewing elements of Land and Buildings Transaction Tax as well as a level playing field for landlords against institutional investors. To this end, it is positive that the Cabinet Secretary has committed to explore the possibility of regulations that would allow for rent increases in rent control areas where the rent has been held consistently below market rent or where there has been investment in improvements to the quality of the rented property.
