Rent control is no longer just a concept for Scottish landlords — it’s becoming an operational reality. With the Housing (Scotland) Bill 2025 proposing new frameworks and councils like Edinburgh and Glasgow preparing for Rent Control Zone applications, the private rental market is bracing for change.
In this article, we explore how rent control zones are already influencing Scotland’s two largest cities, what it means for landlords, and what you can do now to stay compliant and commercially prepared.
What Are Rent Control Zones?
Under current proposals in the Housing (Scotland) Bill 2025, councils will be empowered to apply to designate certain areas as Rent Control Zones — also known as “rental pressure zones.”
This gives local authorities the ability to:
- Limit in-tenancy rent increases
- Set a cap on new tenancy rents (if justified)
- Require landlords to provide historic rent data
The goal is to protect tenants from unaffordable rent hikes in overheated markets. But it’s also triggering concern among landlords about sustainability and investment returns — especially in already tightly regulated markets like Edinburgh and Glasgow.
Edinburgh: The Early Adopter
Edinburgh has long been the focus of rent control conversations. With rising demand, chronic under-supply of long-term lets, and a post-COVID shift away from short-term Airbnb properties, the city has seen:
- Average private rents up over 40% in the last 5 years
- Tenants paying well above Local Housing Allowance levels
- A growing call from MSPs and campaigners for stronger affordability measures
The City of Edinburgh Council has already indicated its intent to apply for designation under the new rent control powers as soon as they are available. In fact, its earlier attempt to impose rent controls under the Private Housing (Tenancies) (Scotland) Act 2016 was rejected due to lack of data — something they are now actively working to address.
What landlords should expect in Edinburgh:
- Rent cap applications likely by late 2025 or early 2026
- Council may tie limits to inflation or income-based affordability indexes
- Rising compliance expectations around documentation and justifications
Tip for landlords: Begin logging historic rent levels for each property and consider the impact of annualised rent ceilings on your future margins.
Glasgow: Pressure Building, But More Balanced
While Glasgow’s market hasn’t surged quite as dramatically as Edinburgh’s, it’s still under notable pressure. In popular areas like the West End, Finnieston, and Southside, demand continues to outstrip supply — especially among students and young professionals.
Some key trends:
- Rents rose by over 25% in Glasgow between 2020–2024
- The city has one of the highest eviction rates in Scotland, prompting calls for stronger regulation
- Housing charities have lobbied Glasgow City Council to follow Edinburgh’s lead
Although Glasgow hasn’t publicly committed to a rent control application yet, it’s widely expected to explore the process in the next 12–18 months.
What landlords should expect in Glasgow:
- Gradual tightening of rent oversight, even if formal caps aren’t implemented immediately
- Scrutiny on high-rent student HMOs and luxury flats
- Potential voluntary rent restrictions during transition periods
Tip for landlords: If you’re operating in student-heavy areas or multi-let flats, prepare for closer attention from the council. Consider phasing in rent changes more conservatively in anticipation.
What Landlords Need to Do Now
Whether you’re in Edinburgh, Glasgow or another Scottish town that may eventually follow suit, it’s important to take a proactive approach:
1. Track Rent History Per Property
Keep a clear record of rent charged over time, ideally in a digital format (e.g. spreadsheet or property management software). Include:
- Rent charged
- Tenancy start/end dates
- Any upgrades or justifications for changes
2. Plan for Capped Growth
When forecasting revenue, build scenarios based on:
- 3–5% annual rent caps
- Freeze periods (as seen during the temporary Cost of Living Acts)
- Legal limits on increases even between tenancies
3. Enhance Value Instead of Price
If you can’t raise rent, you may be able to reduce voids and increase tenant retention through:
- Property improvements
- Energy efficiency upgrades
- Better responsiveness or bundled services
4. Prepare for Documentation Requirements
The upcoming rent control framework is likely to include mandatory documentation. That means:
- Registered landlord status
- EPC, gas safety, EICR all up-to-date
- Rent histories easily accessible to local authorities
Final Thoughts
While rent control zones are still in their infancy, the message is clear: landlords in Edinburgh and Glasgow should prepare for regulation, not hope to avoid it.
For investors, this might seem like a threat to profitability — but for landlords willing to adapt, it also offers long-term stability and tenant loyalty. A well-maintained, fairly-priced property in a rent-controlled market can still deliver reliable income.
Homesbook will continue to monitor local council decisions and legislative changes — and we’re here to support you every step of the way.
