The Scottish Parliament went further and bolder in protecting the rights of renters and residents and combating the housing crisis. We then voted 89 to 28 on new measures to prevent homelessness and cap rent increases. This makes it the first legislation to incorporate provisions famously called “Awaab’s Law.” It’s a landmark step for Scotland as it seeks to tackle the growing challenge of housing affordability.
Under the new rules, councils have greater powers to set their own rent control zones. This amendment allows them to freeze rent increases at the upper limit of inflation + 1%, capping rent increases at 6%. Despite its positive aspects, the legislation has opened up a controversial discussion about what it means for the future of housing development and tenant protections.
Màiri McAllan, the Scottish government’s housing minister, announced that certain exemptions would apply to mid-market rent and build-to-let properties, including student accommodations. Rights advocates fear such exemptions. They worry that these loopholes will defeat the purpose of the new rules and kill potential new housing projects.
Shelter Scotland has sounded the alarm. They warn that placing further duties onto councils, who are already at breaking point enforcing existing legislation on homelessness, would damage efforts. Alison Watson, director of Shelter Scotland, stated, “Once again, we are seeing the consequences of decades of underfunding and poor political choices in housing.”
Living Rent, a tenants’ union, criticized the government’s decision to include exemptions in the legislation, describing it as “a cowardly response to extensive lobbying from landlords.” They further claimed that the exemptions would “create a two-tier system of rent controls,” which could undermine the intended benefits of the new law. Ruth Gilbert, Living Rent’s national campaigns chair, spoke to the significance of the rent controls being proposed. She agrees that these measures are the bare minimum the state needs to protect tenants.
Confounding the controversy surrounding the exemptions, self-described progressive lawmakers quietly celebrated the passage of the exemptions, along with the bill. The Scottish Greens hailed the establishment of rent control zones as a “historic step for fixing the rigged housing market.” They see this reform as an essential step towards delivering a fairer housing system across Scotland.
Recent preliminary statistics indicate a 6% decrease in new home completions compared to a year ago. We fully understand the urgency, it illustrates the pressures that across the country renters and local and borough councils are feeling right now.