Exemptions from rent controls vital to the supply of housing in rural Scotland

Press Release
18 Jul 2025

Targeted exemptions from proposed rent controls are vital in sustaining and increasing the supply and quality of rented housing available in rural Scotland, Scottish Land & Estates (SLE) said today.

The rural business organisation has responded to a Scottish Government consultation on the Housing (Scotland) Bill, which is currently at Stage 3 in the Scottish Parliament. 

The consultation, which closes today (July 18), seeks views on how powers within the Bill could be used to exempt certain types of properties from rent control, circumstances where rents could be increased above the level of the rent cap and clarify how joint tenancies in the private sector are ended. Under measures contained within the Bill, rent control areas will see rent subject to a cap of CPI+1% to a maximum of 6%.

The call for views also seeks feedback on a new route for the ending of a joint tenancy that does not require mutual agreement between tenants, thereby not ‘trapping’ a tenant in a lease they wish to exit. 

In its response focusing on rural housing supply, SLE said exemptions from rent control areas should be applied to:

  • Properties let at mid-market rates – housing which plays an important role in bridging the gap between social housing and the private rented sector;

  • Build to Rent (BtR) in order to unlock the private investment needed to deliver rental housing;

  • Certain categories of rented housing, such as tied housing used by employees or properties returning to the market after use as housing for retired employees;

  • Properties where landlords make significant investments such as improving energy efficiency or improving amenities such as kitchens / bathrooms.

SLE also said it is important to ensure rural housing providers have the flexibility to bring rent in line with the market at the start of a new tenancy, particularly when the previous rent was significantly lower (e.g. housing let to an employee or long-standing tenant).

Anna Gardiner, Policy Adviser (Rural Property) at Scottish Land & Estates, said: 

“Ensuring a healthy supply of good quality, rented housing in rural Scotland is vital in sustaining both rural communities and economies. Whilst we believe rent control areas are a fundamentally flawed concept, we are pleased that government has sought views on where common-sense exemptions should be applied to avoid certain categories of property being unfairly caught up in the system. 

“The Landlord Register shows that the number of properties registered for letting has declined in rural regions since the advent of rent controls - and introducing a blanket rent cap would only exacerbate that situation. Data collection around the rural rented sector lags behind the rest of the country, and without the relevant data local authorities could end up imposing regulations without a clear understanding of their implications.

“If rent controls are to be pursued, then we need exemptions to be put in place in order to encourage landlords to keep investing for the long-term and sustaining existing housing stocks. This includes removing properties from controls where they are let at mid-market rents, properties that are tied such as those let to employees or housing where the landlord undertakes significant improvements, such as improving energy efficiency which is in line with the pursuit of net zero by government.

“Finally, the process for ending a joint tenancy, as set out in the Bill, must be clear and consistent to ensure fairness for all parties. While the notice requirements themselves should remain strict to uphold legal certainty, the methods by which service of those notices is evidenced should allow for flexibility. This is particularly important in rural, island, and remote communities, where limited access to postal services, digital connectivity, or legal support can make rigid evidencing requirements difficult to meet. A more adaptable approach would help ensure the process remains accessible and workable for tenants regardless of their location or circumstances.”