Local Housing Strategy: guidance 2026

Home Ownership and Private Rented Sector

Home Ownership

The Affordable Housing Supply Programme comprises a range of funding mechanisms to enable homes for social rent, mid-market rent, and low-cost home ownership across Scotland.

The Open Market Shared Equity Scheme operates across Scotland and is available to priority access groups including social renters and disabled people amongst others who cannot afford the full price of a home. Local authorities may wish to consider monitoring information that is published by the Scottish Government which includes a summary of the characteristics of households purchasing homes.

The New Supply Shared Equity scheme is part of the range of assistance from the Scottish Government under the Low-Cost Initiative for First Time Buyers ('LIFT'). It aims to help people on low to moderate incomes access home ownership and to buy a new build home from either a Local Authority or a Registered Social Landlord.

Partnership Support for Regeneration aims to support social inclusion and community regeneration by increasing the stock of owner occupied or private rented housing (not for social rent). The scheme provides private developers, housing trusts and non-registered social landlords with the minimum level of grant funding needed to make the project financially viable. The funding provided helps bridge the gap between the costs of the development and the sales value of the units.

Summary of areas expected to be included in LHS

a. a short summary demonstrating how the local authority has considered home ownership opportunities across its area including the use of specific home ownership mechanisms.

Private Rented Sector

The Private Rented Sector (PRS) in Scotland plays an integral part in meeting a diverse range of housing needs across Scotland. It is a tenure which has expanded to provide more homes for families and individuals across the country and is home to around 320,000 households of which 22% are families with children, according to the Scottish Household Survey 2024: Key Findings.

Growth in the sector has been accompanied by legislative changes aimed at driving forward improvements in standards across the PRS. The legislative context continues to evolve with a view to delivering the changes needed for a successful high quality, affordable and fair rented sector. This includes the recent Housing (Scotland) Act 2025 which introduces a system of rent control that will replace the current Rent Pressure Zone approach.

The Scottish Government’s New Deal for Tenants Draft Rented Sector Strategy Consultation set out the following strategic aims for the rented sector as a whole to:

• ensure that all homes for rent in Scotland are good quality and help deliver net zero aims
• provide affordable options, irrespective of the tenure lived in or where in Scotland a home is rented
• help enable growth and investment and help increase the overall supply of affordable housing
• contribute to tackling child poverty, eradicating fuel poverty, ending homelessness and ensuring the right to an adequate home
• ensure a clear understanding of the needs of minority ethnic communities, women, people with disabilities and all people with protected characteristics to promote equality of outcome and experience for those in the rented sector

Summary of areas expected to be included in LHS

a. a short summary of the PRS in the local authority area.

b. a summary setting out the local authority’s vision for the PRS in its area and what change is required for this to be achieved. In doing so, the local authority should:

i. consider the Scottish Government’s strategic aims with reference to the PRS and how LHS priorities and outcomes contribute to these.

ii. ensure there is a a broad understanding of the PRS in the local authority area including all types of private rented accommodation provision, rental affordability, property standards and conditions and any local issues for the sector.

c. a summary of what existing measures the local authority has in place to support a well-functioning and regulated PRS. This should include monitoring compliance and enforcement of relevant statutory requirements, private landlord forums, tenant participation activities, tenant support such as PRS access or rent guarantee schemes, improvement projects.

d. a short summary of any designated Rent Control Areas or any current applications submitted to Scottish Ministers seeking to have an area or part of an area designated as a Rent Control Area.

e. a summary of what new or future interventions are required to support private tenants and landlords and improve standards and how these will be delivered

f. a short summary that demonstrates that Build to Rent has been considered together with reference to any strategy that has developed.