Briefing: What happened with Scotland's rent stabilisation

Shelter, along with the Renters Reform Coalition, is calling for limits to annual rent increases (by the lowest of inflation or wage growth) within tenancies to be included as part of the Renters’ Rights Bill.

While this policy is different to the set of policies implemented in Scotland in 2022 and 2023, this briefing discusses how lessons can be learned from Scotland’s experience with caps on in-tenancy rent increases in policy design.

Some commentators, within Parliament and the in the media, have judged Scotland’s experience with rent stabilisation a failure, citing increasing rents and continued evictions in Scotland. These outcomes have been referenced extensively as part of the Renters’ Rights Bill debates, when it comes to tackling rising rents, during both the Commons and Lords stages.

However, the only comprehensive research available on the rent stabilisation measures in Scotland finds positive impacts for sitting tenants. There is also no strong evidence linking rent stabilisation in Scotland with the claimed negative effects for private renters.