Housing (Scotland) Act 2025

Part 1 — Rent

Chapter 1 — Designation of rent control areas

Rent conditions: assessments and reports

Periodic assessment of rent conditions

1

• (1) Each local authority must, by no later than the end of each reporting period—

• (a) carry out an assessment of—

• (i) the level of rent payable under relevant tenancies of properties in the area of the local authority,

• (ii) the rate of increase in rent payable under relevant tenancies of properties in the area of the local authority, and

• (iii) the impact that the level of rent and rate of increase in rent payable under relevant tenancies of properties has on properties, tenants and landlords in rural areas within the local authority where applicable, and

• (b) prepare and submit a report in relation to the assessment to the Scottish Ministers (see section 2).

• (2) In subsection (1), “reporting period”—

• (a) in the case of the first report of a local authority under that subsection, means the period ending with 31 May 2027,

• (b) in the case of each subsequent report of a local authority under that subsection, means the period of 5 years beginning with the day following the end of the reporting period relating to the local authority’s previous report under that subsection.

• (3) The Scottish Ministers may by regulations amend subsection (2)(a) to, for the date specified in that subsection, substitute another date.

• (4) The Scottish Ministers may by regulations amend subsection (2)(b) to—

• (a) for the time period for the time being specified in that subsection—

• (i) substitute another time period by which one or more subsequent reports must be submitted,

• (ii) specify a date (or dates) by which one or more subsequent reports must be submitted,

• (b) for the date (or dates) for the time being specified in that subsection (such specification having been made as mentioned in paragraph (a)(ii)), substitute a date (or dates) by which one or more subsequent reports must be submitted.

• (5) In this Chapter—

• “assessment of rent conditions” means an assessment of the matters mentioned in subsection (1)(a),

• “relevant tenancy” means a private residential tenancy, or an assured tenancy under the Housing (Scotland) Act 1988.

Report to Scottish Ministers following periodic assessment

2

• (1) A local authority’s report under section 1(1) must—

• (a) include details of the assessment of rent conditions carried out by the local authority,

• (b) state—

• (i) whether or not it recommends to the Scottish Ministers that they designate all or any part of the area of the local authority as a rent control area under section 9(1), and

• (ii) the reasons for any such recommendation.

• (2) In its report under section 1(1), a local authority may recommend the designation of any area as a rent control area only if the local authority is of the opinion that the introduction of measures to control the rate at which rent payable under private residential tenancies of properties in the area is increasing is necessary to protect the social and economic interests of tenants in the area.

• (3) Where a local authority recommends under subsection (1)(b)(i) that part of the area of the local authority should be designated as a rent control area, the authority may, where the authority considers it appropriate, specify the part (including its boundary) by reference to a street, all or part of an electoral ward or another appropriate existing boundary.

• (4) Where a report includes a recommendation as mentioned in subsection (2) that an area be designated as a rent control area, the report must include a plan identifying the boundary of the area.

• (5) In this Chapter, “rent control area” means an area that is designated as a rent control area by regulations under section 9(1).

Interim assessment and reports by local authorities

3

• (1) Subsection (2) applies where a local authority considers that, since the submission of the most recent report under section 1(1) in relation to the area of the local authority—

• (a) there has been a significant change in—

• (i) the level of rents under relevant tenancies in the area (or any part of it), or

• (ii) the rate of increase in rents under relevant tenancies in the area (or any part of it), and

• (b) the change may affect the need to designate the area (or any part of it) as a rent control area.

• (2) The local authority may (in addition to the duty to carry out a periodic assessment of rent conditions and to submit a subsequent report under section 1(1)) carry out an interim assessment of rent conditions in relation to its area of (either or both)—

• (a) the level of rents in the area (or any part of it),

• (b) the rate of increase in rents in the area (or any part of it).

• (3) Where a local authority is carrying out an interim assessment of rent conditions under subsection (2), it must inform the Scottish Ministers in writing of that fact.

• (4) Subsection (5) applies where the Scottish Ministers consider that, since the submission by a local authority of its most recent report under section 1(1), there has been a significant change in—

• (a) the level of rents under relevant tenancies in the area of the local authority (or any part of it), or

• (b) the rate of increase in rents under relevant tenancies in the area of the local authority (or any part of it).

• (5) The Scottish Ministers may direct the local authority (in addition to the duty to carry out a periodic assessment of rent conditions and to submit a subsequent report under section 1(1)) to carry out an interim assessment of rent conditions in relation to its area of (either or both)—

• (a) the level of rents in the area (or any part of it),

• (b) the rate of increase in rents in the area (or any part of it).

• (6) Where a local authority has carried out an interim assessment of rent conditions under subsection (2), it must prepare a report relating to the assessment and submit it to the Scottish Ministers as soon as is reasonably practicable following the completion of the interim assessment.

• (7) Where a local authority has carried out an interim assessment of rent conditions under subsection (5), it must prepare a report relating to the assessment and submit it to the Scottish Ministers in accordance with any time limit specified in the Scottish Ministers’ direction given under that subsection.

• (8) A direction under subsection (5) must—

• (a) be given in writing, and

• (b) be published in such manner as the Scottish Ministers consider appropriate.

Consideration of rent conditions reports

Scottish Ministers to review local authority report

4

The Scottish Ministers must consider a report received from a local authority under—

• (a) section 1(1),

• (b) section 3(6), or

• (c) section 3(7),

as soon as reasonably practicable after receipt of the report.

Further assessment of rent conditions and report by local authority

5

• (1) Subsection (2) applies if the Scottish Ministers, having considered a report from a local authority as mentioned in section 4, or pursuant to a direction under subsection (2), are of the opinion that—

• (a) the assessment of rent conditions to which the report relates was not adequate, or

• (b) the local authority did not have regard to the Scottish Ministers’ relevant guidance in connection with—

• (i) the carrying out of its assessment of rent conditions on which the report is based, or

• (ii) the preparation of the report.

• (2) The Scottish Ministers may direct the local authority to carry out a further assessment of rent conditions and submit a further report in relation to that assessment.

• (3) A direction under subsection (2) must—

• (a) be given in writing, and

• (b) specify the timing and manner of the local authority’s further assessment and report.

• (4) A requirement to submit a further report in accordance with a direction under subsection (2) does not affect the duty of a local authority to submit a periodic report under section 1(1).

• (5) In subsection (1)(b), “relevant guidance” means—

• (a) in relation to the carrying out of an assessment, guidance issued under section 6(1),

• (b) in relation to the preparation of a report, guidance issued under section 7(1).

Ministerial guidance on local authority assessments and reports

Ministerial guidance on assessments of rent conditions

6

• (1) The Scottish Ministers may issue guidance to local authorities about the carrying out of assessments of rent conditions under section 1(1), 3(2) or (5), or 5(2).

• (2) Guidance issued under subsection (1) may, in particular, include provision about—

• (a) the nature of an assessment of rent conditions including different stages of an assessment,

• (b) the matters to be considered by a local authority in carrying out an assessment,

• (c) action to be taken by a local authority in the course of carrying out an assessment,

• (d) matters to be taken into account in identifying discrete parts of the area of the local authority that are to be considered individually as part of an assessment,

• (e) matters to be taken into account by a local authority in assessing whether the level of rent payable under relevant tenancies of properties in an area is to be considered by the local authority as being too high,

• (f) matters to be taken into account by a local authority in assessing whether the rate at which rent payable under relevant tenancies of properties in an area is increasing is to be considered by the local authority as being too high.

• (3) Before issuing guidance under subsection (1), the Scottish Ministers must consult—

• (a) local authorities,

• (b) persons who appear to them to represent the interests of tenants and landlords, and

• (c) persons who appear to them to represent the interests of rural communities.

• (4) The requirement to consult under subsection (3) may be met by consultation carried out before this section comes into force.

• (5) The Scottish Ministers must publish guidance issued under subsection (1) in such manner as they consider appropriate.

• (6) In carrying out an assessment of rent conditions mentioned in subsection (1), a local authority must have regard to any guidance issued under that subsection.

Ministerial guidance on reports following assessments of rent conditions

7

• (1) The Scottish Ministers must issue guidance to local authorities about reports to be prepared under section 1(1), 3(6) or (7), or 5(2).

• (2) The first guidance about reports to be prepared under each of the provisions mentioned in subsection (1) must be issued within the period of 9 months beginning with the day on which the provision in question comes into force.