The Housing (Scotland) Bill aims to tackle poverty across Scotland by improving the renting experience for tenants, through a range of new rights, including the right to request to keep a pet or make changes to the property such as decorating, and a system of rent controls, in a way that the Scottish Government said will maintain investment.

Under the proposal, a national rent control system will require local authorities to monitor and regularly report conditions in their local private rented sector (PRS) and make recommendations to ministers about whether rent increases should be restricted.

The Bill will also place a stronger emphasis on homelessness prevention based on better coordination across services and providing support earlier.

It will introduce a new homelessness prevention duty that would require specified bodies to ask about a person’s housing situation and take certain actions if they are found to be homeless or at risk of homelessness, the details of which are still to be developed. A separate duty for social landlords to introduce a domestic abuse policy is also included.

Housing minister Paul McLennan said: “The Housing (Scotland) Bill will play an important role in helping to tackle poverty by keeping rents affordable and ensuring people can stay in their homes.

“Ensuring everyone has the right to a safe and stable home is essential to the Scottish Government’s priority of ending child poverty and the Bill will play a role in reaching that goal.

“Scotland has led the way in protecting tenants and providing rights for homeless people. The Housing (Scotland) Bill aims to create a rental system that improves the rights of tenants while maintaining investment and provides greater support for people threatened with homelessness.

“I am pleased Parliament has supported the general principles of the legislation, especially on our proposals for a system of rent controls that keep costs lower for tenants.”

Catch up with the debate here.

The Bill will now proceed to Stage 2 where amendments will be considered, a stage that CIH Scotland believes could yet strengthen the legislation.

Commenting on the Stage 1 debate, Ashley Campbell, policy and practice manager at CIH Scotland, said: “We support the decision to take the Housing (Scotland) Bill 2024 to Stage 2 following today’s parliamentary debate. The homelessness prevention and domestic abuse measures have the potential to change Scotland’s approach to homelessness services – to focus more on prevention and to formalise the vital role of partners.

“However, if these measures are to be effective, they must be fully resourced and underpinned by clear guidance developed in partnership with the organisations expected to deliver them.

“Our concerns with the rent control proposals remain. Of course, we want to see rights strengthened and affordability improved, but the provisions will not achieve this without robust regulatory structures in place to support good practice and proactively enforce the rules. The current system relies far too much on tenants to police the sector and to challenge poor behaviour when they may not have the confidence to do so.

“We look forward to working with MSPs across all parties to ensure that amendments are brought forward to strengthen the Bill and deliver the Scottish Government’s ambitions to end homelessness and create a fairer rented sector.”

Landlord body Propertymark said the rent control proposals in the Bill will do nothing to support more private rented homes in Scotland.

Timothy Douglas, head of policy and campaigns, said: “Rent controls are not the answer to tackle the housing emergency in Scotland. Increasing the supply of homes to rent, reducing landlord costs and removing the tax burden to buy a property to let will make renting more affordable for tenants.

“Furthermore, the proposals and details for rent control areas in the Bill are limited at best, and offer no clarity for existing agents working with landlords or for new would-be landlords thinking of entering the sector.

“Significant amendments to the legislation are needed if the Scottish Government want to raise property standards and make renting more affordable. This must include removing the application of rent control measures between tenancies in order to allow upgrades such as redecorating, replacing furniture, or installing energy-efficient measures to take place.”

The Scottish Property Federation (SPF) reiterated its call that the Bill still fails to adequately acknowledge and address the fundamental challenge facing the private rented sector of an inability to balance supply with rising demand for rented homes.

If Scotland is to boost the delivery of new private rented homes to address this, including at mid-market rates, the SPF argues that the only way to do this is by urgently rebuilding investor confidence - something it said has plunged over the last 12 months as evidenced by a 45% reduction in build to rent construction activity between October 2023 and October 2024.

Yet despite the Scottish Government’s intention to consider exemptions from its planned rent control mechanism to support new build homes at market and mid-market rents, the SPF remains concerned with proposals to extend rent controls beyond sitting tenants. This will result in properties ‘in-between’ tenancies potentially being captured, deterring investors and potentially leading to more landlords selling up and departing the sector.

David Melhuish, director of the SPF, said: “The fundamental challenge for the private rented housing market in Scotland remains the lack of new investment and availability of homes to rent. Put simply, there is a huge imbalance in the market with too much demand for too few homes. This is being compounded by declining supply, with Scottish build-to-rent constructions falling by some 45% compared to the same time last year. To address this the government needs to go further to restore investor confidence in Scotland and to unlock at least £2.5bn in direct investment, kick start some 15,000 homes at various stages of planning, and even more added value for the wider economy.

“While we support proposals to boost critically needed new modern homes for rent of all tenures and we believe the proposals for consulting on the Bill’s framework powers for exemptions from the rent control regulations must be addressed to encourage and facilitate new housing investment for Scotland, given that at least £500m of investment could already have been lost as the policy of rent controls has been formed. Of particular concern remains the application of rent controls on empty properties in between tenancies. This part of the Bill must be reconsidered if we are to restore investor confidence and begin to address the housing shortfall.”

Scottish Land & Estates (SLE), which represents rural businesses and housing providers, has raised significant concerns about the legislation.

While acknowledging the urgency of addressing Scotland’s housing crisis, SLE believes the Bill prioritises rent control measures over solutions to increase housing supply and is a ‘missed opportunity’ to create the real change that is required.

Anna Gardiner, policy adviser (rural property) at SLE, said: “Scotland is facing a housing emergency, but this Bill focuses on rent controls instead of tackling the root issue: a lack of homes.

“Evidence shows that rent controls can exacerbate supply issues and even drive rents up. This legislation risks disenfranchising private landlords and stifling investment in the very housing stock we so desperately need.

“In rural Scotland, housing isn’t just a place to live; it’s a cornerstone of community viability. Applying a rural impact assessment to this Bill could ensure that it enhances the rural rented sector rather than inadvertently causing harm. Rural housing providers already face higher maintenance costs and lower rental incomes. Without the ability to reset rents to market levels between tenancies, many will be forced out of the market, worsening the housing shortage.

“Housing providers need certainty to invest. While we welcomed initial proposals from the Housing Minister to clarify rent increase mechanisms in controlled areas, the Bill still leaves too many questions unanswered. This creates uncertainty for landlords, further discouraging investment in new housing stock.”

Recent data from the Landlord Register highlights a decline in private rented sector (PRS) properties across rural Scotland, with reductions of 7.5% in Highland and 4.5% in Dumfries & Galloway. The trend, combined with anecdotal evidence from SLE members, underscores the urgent need for policies that boost housing supply rather than discourage investment.

Anna added: “Housing operates as a delicate ecosystem. Policies that restrict one area, like rental prices, must be counterbalanced by measures to boost supply. Unfortunately, this Bill focuses narrowly on regulation without addressing the systemic challenges we face, such as slow planning processes, infrastructure gaps, and a skills shortage in the construction sector.

“The decline in PRS properties reflects the impact of recent and proposed legislation, which is driving landlords out of the sector. This is especially alarming in rural areas, where PRS properties play a vital role in supporting local economies and communities. The Scottish Government must prioritise policies that encourage landlords to remain in the sector and invest in new housing.

“Scotland doesn’t need more regulation—it needs more homes. We urge the Scottish Government to revise this Bill and deliver policies that genuinely address the housing crisis. By supporting rural housing providers and boosting supply, we can create a fairer and more sustainable housing system for everyone.”

For tenants’ union Living Rent, renters across Scotland “will celebrate this vote” bringing proper rent controls one step closer.

Ruth Gilbert, national campaigns chair, said: “Rent controls, if done right, will transform Scotland. From child poverty to homelessness, bringing down Scotland’s exorbitant rents is an essential step in addressing the housing crisis.

“What’s concerning from (the debate) is that too many MSPs are repeating landlord’s myths instead of advocating for tenants. Landlords are doing everything they can to sabotage and water down the bill.

“MSPs need to support tenants and introduce rent controls tied to the property and not the tenancy or else landlords will continue to be incentivised to evict tenants in order to increase rents. We’ve seen the inflationary pressure caused by massive between-tenancy rent hikes, so it’s simple economic sense.

“This bill is a historic opportunity to turn the tide on the failed experiment of deregulation in housing, and we cannot pass it up.”