Social Justice Secretary Shirley-Anne Somerville said the proposed measures will help protect tenants facing cost of living pressures and rising energy prices, whilst providing appropriate protection for the property rights of landlords and supporting investment.

Rent increases in control areas would be limited to the CPI annual rate of inflation plus 1%, up to a maximum increase of 6%. If approved, the rent cap will apply both to rent increases during the term of a tenancy, and in between tenancies, in areas where rent control is applied.

Ministers will determine which areas should be subject to rent control in order to protect tenants. The amendments build on a package of renters’ rights already in the Bill including the right to keep pets and to decorate rented properties without having those unreasonably refused.

Ms Somerville said: “Eradicating child poverty remains this government’s top priority and having a home can make a direct contribution to achieving this.

“Ensuring families can have secure and affordable homes that meet their needs is part of our approach to tackling the housing emergency. These measures will also help protect tenants against a backdrop of a continuing cost of living crisis and rising energy costs. We are doing what we can with the powers that we have as we know our policies are working to improve the lives of families in Scotland.

“Scotland already has some of the strongest rights in the UK for tenants, but we want to improve the renting experience even more to create an affordable, high-quality and fair rented sector.

“We have been working closely with tenants’ organisations to develop provisions in the Housing Bill to improve renters’ rights, including a system of long-term rent controls that is fair for tenants and encourages investment in the sector.

“Our rented sector is a crucial part of tackling the housing emergency and these measures provide important certainty for tenants.”

Scottish Association of Landlords chief executive John Blackwood said: “It is reassuring to see that the Scottish Government is listening to the concerns of landlords and has proposed to amend the bill to recognise, that even in rent control areas (where they exist), landlords will still be able to increase rents.

“The Bill, as published, could have precluded any rent increase. We also welcome additional amendments from other MSPs proposing exemptions for rents to rise between tenancies.

“Landlords are quite rightly extremely concerned about rent controls, and many have already sold up and exited the sector.

“Now, more than ever, the Scottish Government needs to work with private landlords to secure the future of private renting in Scotland and ensure people have homes to rent when and where they need them.”