MMR and long-term rent controls in a Housing Bill – SFHA update

Mid-Market Rent (MMR) provided by our members continue to be affected by the Scottish Government’s incoming Private Rental Sector (PRS) reforms because the Private Rental Tenancies that underpin them.   

While we anticipate the introduction of the proposed (temporary) rent adjudication reforms on April 1st, which will apply a formula to rent increases accepted under the rent adjudication services for the PRS, we also await the introduction of long-term rental controls in a Housing Bill.  

At this point, after extensive consultation with Scottish Government, SFHA does not anticipate that the Housing Bill will provide the detail to specifically exempt MMR provided by RSLs from long-term rent controls to the PRS. We do expect the Bill to include scope for future exemptions, however, either through amendments or secondary legislation.  

We continue to expect the Housing Bill to be introduced in the Parliamentary term, but do not have additional details on its timeline.  

Once the Housing Bill has been published, we’ll know more about possible routes for resolution and will consult with members. SFHA is prepared to work with MSPs and lodge an amendment on exemption for publicly funded homes, if required.   

SFHA will undertake preparatory work while we await a Bill, including information gathering on the scale of the sector, tenants’ protections, and RSL subsidiary landlord responsibilities. We are likely to convene a future working group of MMR-providing members to feed into the case for exemptions. Please stay tuned for more information on this in the coming weeks. 

While we wait, we’re keeping up efforts to influence exemptions and distinguish MMR provided by RSL subsidiaries from other, ‘typical’ PRS landlords.  We are maintaining dialogue with various senior officials in government and continue to welcome input from members in advance of the Housing Bill’s introduction.  

To volunteer for a MMR exemption working group, or for questions or comments, please contact Annabel Pidgeon, apidgeon@sfha.co.uk. Thank you! We will also keep members informed of relevant updates and/or further opportunities to participate through the usual channels.