Housing (Scotland) Bill passed by Holyrood
Legislation to transform homelessness prevention and improve standards in rented housing has been passed by the Scottish Parliament.
The Housing (Scotland) Bill will place a duty on certain public bodies to prevent people from losing their homes by asking about their housing situation and taking action.
The Bill will also broaden Ministers’ powers to implement ‘Awaab’s Law’, which will ensure landlords promptly address issues that are hazardous to tenants’ health, starting with damp and mould.
The legal measure was named after Awaab Ishak who died in 2020 after being exposed to mould in his home in Rochdale in north west England. The law will now be implemented in Scotland’s rented sector from March 2026, subject to Parliament’s agreement.
Other measures in the Bill include giving Ministers the power to implement a system of long-term rent controls, keeping rent affordable for tenants.
Housing Secretary Màiri McAllan said: “Passing the Housing (Scotland) Bill is a landmark moment for how we prevent homelessness in Scotland.
“Whilst we already have some of the strongest homelessness rights of any country, we will now go even further to a create a gold-standard homelessness prevention system.
“Passing this groundbreaking legislation, coupled with the Housing Emergency Action Plan published earlier this month, shows just how serious we are about tackling Scotland’s housing crisis.
“Families across Scotland will have the confidence that their rented home will be free from damp and mould as we take forward work to implement ‘Awaab’s Law’. We will now work at pace to lay regulations to implement these protections from March.
“Scotland has already led the way in protecting tenants and providing strong rights when people are homeless and now the Housing Bill will revolutionise homelessness prevention and ensure rents are kept affordable.”
Maeve McGoldrick, head of policy and communications for Crisis Scotland, said: “Today’s vote marks a landmark moment in Scotland’s journey towards ending homelessness.
“We already have strong rights in place for people experiencing homelessness, but as we see from our frontline services, we need to do far more to prevent people losing their home in the first place. That means allowing people entering a housing crisis to get help earlier, so they can get support before it is too late.
“At Crisis we have been calling for new protections to stop people being forced from their homes for years. These new changes, contained in the Housing Bill, hold the potential to create a truly world-leading homelessness system, where everyone has a safe, secure place to live.”
Campaigners Living Rent said: “MSPs voted to pass the Housing bill and with it, rent controls. This bill wouldn’t exist without the work of Living Rent members.
“It caps rent increases between tenancies, clamps down on disrepair, and strengthens joint tenancy rights.”
The Scottish Greens also welcomed the decision: “40 years ago Margaret Thatcher abolished rent controls in Scotland.
“The Scottish Parliament just passed a Bill introduced by the Scottish Greens, which will allow them once more! This will keep rents affordable and offer safety and stability to renters.”
Graham Crocket, National Estate Agency Director at Aberdein Considine, has reacted to the passing of the new Housing (Scotland) Bill 2025.
The Bill empowers local councils to designate ‘Rent Control Areas’, capping rent increases to inflation plus 1%, and introduces stricter eviction rules while mandating rent history disclosures.
Graham said: “The implementation of the Housing (Scotland) Bill 2025 is a turning point for landlords, property buyers and the wider property market. While the government frames this Bill as a step towards fairness and affordability, the ripple effects could be profound.
“With rent controls, enhanced tenant protections and new transparency requirements becoming law, landlords and investors will need to carefully reassess their positions, while first-time buyers could be among those best placed to benefit.
“For landlords, especially those operating in high-demand urban areas, the Bill represents a tightening of margins and a loss of flexibility. The prospect of capped rent growth and longer notice periods may prompt a sell-off of rental housing stock, particularly for older flats and tenements. This shift could flood the second-hand market with properties previously held for investment.
“If this happens, first-time buyers could find themselves with more choice and negotiating power than before. In cities like Glasgow and Aberdeen, where affordability ratios are more favourable, the impact could be especially pronounced. Entry-level homes may see a softening in price, giving new buyers a foothold in markets that have long felt out of reach.
“The Bill’s full impact will depend on how councils implement rent control zones and how landlords respond. For now, the market is watching, and first-time buyers may be wise to do more than just watch.”
Aberdein Considine has produced a short city-by-city forecast on the expected impact of the Housing (Scotland) Bill:
- Glasgow: With an average house price of £191,000 and strong rental demand, Glasgow is likely to see moderate investor exits. Flats in areas like Dennistoun and Southside may enter the market, softening prices and improving access for first-time buyers.
- Edinburgh: Scotland’s capital faces a declared housing emergency and high property values. Rent controls could be rolled out aggressively, prompting landlord exits in Leith and Southside. However, strong demand may keep prices buoyant, limiting gains for new buyers.
- Aberdeen: Long subdued by oil sector volatility, Aberdeen’s market is already cool. The bill may accelerate existing trends, with modest price declines and increased affordability for buyers seeking value.
- Stirling: Affordable and well-connected, Stirling could attract buyers priced out of Glasgow and Edinburgh. Investor exits near the university and city centre may boost supply of housing stock, stabilising prices and enhancing accessibility.
- Perth: With a quieter market and rural appeal, Perth may see slower changes. However, increased listings of older rental stock could gently ease prices, especially for flats and terraced homes.
Aberdein Considine is an award-winning law firm with 21 offices and more than 450 staff across Scotland and the north of England. The firm is also Scotland’s largest solicitor estate agent with a national network of high street branches, including in the key cities of Aberdeen, Edinburgh, Glasgow, Perth and Stirling.
