The Private Housing Rent Control (Exempt Property) (Scotland) Regulations 2026 - business and regulatory impact assessment

Section 4: Additional implementation considerations

Enforcement/ compliance

Ensuring that tenants have the right information will be vital in ensuring both that the exemptions operate correctly and that tenants and prospective tenants have the information they need to make informed decisions about their tenancies.

Many of the details of the compliance and enforcement measures aspects of the rent control measures in the Act were set out in previous impact assessments and in the Financial Memorandum which accompanied the Bill at introduction.

For cases where a property is exempt under the proposed regulations, it is intended that there will be a process by which a property is confirmed as an exempt property, in order to enable tenants to be notified about the exempt status of a property and to verify that a property is exempt from rent control. The Act includes a power for the Scottish Ministers to set out such a process, which could potentially involve application to an approval process and/or some form of inclusion in a register. It is possible that there will also be consideration of a route by which a tenant could challenge a case where the landlord relied on an exemption which the tenant did not believe applied to the let property. It is likely that, if such a route is in place, it would mirror existing compliance routes in the sector.

In our recent consultation, we asked questions about how eligibility for an exemption could be demonstrated to ensure that tenants have the information they need. We will consider the responses to this question as part of bringing forward any proposals in respect of an approval process. Our preliminary considerations suggest that a priority should be that the process should make it be straightforward for a tenant to verify whether a property is exempt.

UK, EU and International Regulatory Alignment and Obligations

Internal Market/ Intra-UK Trade

The Scottish Government has considered whether the proposed measures discussed in this BRIA have any impacts which are relevant to the United Kingdom Internal Market Act 2020.

The proposals relate to immovable residential property located in Scotland, and therefore the requirements in the Internal Market Act 2020 which relate to goods (defined in the Act as movables) are not relevant. There are also no material impacts relevant to the services requirements of this Act. The proposed measures relate to aspects of the legal and regulatory framework which governs how private property is let, and this framework applies irrespective of where the landlord is based.

There are no differential requirements between landlords based in Scotland and those based in the rest of the UK, since landlords based in the rest of the UK are free to purchase residential property in Scotland and let it on the same terms as landlords based in Scotland.

International Trade Implications

The Scottish Government has considered whether the proposed measures discussed in this BRIA have any impacts which are relevant to international trade and the UK’s international trade obligations, in particular in relation to the following questions:

Does this measure have the potential to affect imports or exports of a specific good or service, or groups of goods or services?

No. The measures relate to immovable residential property located in Scotland, and thus do not affect the import or export of goods or services.

Does this measure have the potential to affect trade flows with one or more countries?

No, for the reasons set out in the answer above.

Does it place particular technical requirements upon (imported) goods?

No, for the reasons set out in the answer above.

Does this measure include different requirements for domestic and foreign businesses?

No. The same legal framework applies regardless of where the landlord is based.

EU Alignment consideration

The proposed measures are not likely to impact on the Scottish Government’s policy to maintain alignment with the EU.

Legal Aid

As discussed elsewhere in this BRIA, it is intended that measures will be put in place to support landlords and tenants in being confident where an exemption from rent control is applicable and where it is not.

The tenants of properties which are exempt will have access to existing rent adjudication systems through rent officers, with an appeal route to the First-tier Tribunal for Scotland Housing and Property Chamber. The Rented Sector Reforms BRIA which considered the costs of the primary legislation included engagement with the Scottish Legal Aid Board^[60], who noted that they do not currently see many applications for legal aid in relation to Tribunal cases.

For this reason, we do not consider that the proposed exemption measures will have any significant impact on possible legal aid costs as previously assessed.

Digital impact

Some digital changes will be required as part of the implementation of measures proposed.

The Act includes requirements for landlords advertising an exempt property within a rent control area to include supplementary information in property adverts, and this will apply to any written advertisement. The design of this measure therefore ensures that the requirement will apply to advertisements placed online as well as more traditional advertisements, offering the maximum protection to tenants, through whatever medium they become aware of the advertised property.

As set out above, it is intended that there will be a process by which a property is confirmed as an exempt property, and to verify that a property is exempt from rent control, which could potentially involve application to an approval process and/or some form of inclusion in a register. It is intended that further digital impact assessment will be carried out when regulations on this are brought forward

It is intended that the changes brought about by these proposed regulations will be supported by modifications to the existing online information currently provided by the Scottish Government to assist private landlords and tenants in complying with statutory requirements.

Business forms

The Act includes a power for the Scottish Ministers to set out a process by which a property is confirmed as an exempt property, in order to enable tenants to be notified about the exempt status of a property and to verify that a property is exempt from rent control and for landlords to have assurance on their exempt status.

The Act provides that this may involve an approval process or inclusion in a register. Whilst further work will be required to consider and develop the most appropriate approach, which would be set out in regulations, it is possible that this may include application or information forms. The Act includes a requirement for the Scottish Ministers to consult with persons representing the interests of landlords and tenants before laying such regulations. Any forms which are produced would be tested with representatives of the end-users to ensure that they are fit for purpose and easy to use.