Rent control assessments and periodic reports: guidance for local authorities

Section 1: periodic assessment of rent conditions

Section 1 of the act sets out a statutory duty for all local authorities to carry out periodic assessments of rent conditions within their areas. The purpose of this assessment is to ensure that there is an evidence-based understanding of the level of private rented sector rents in each local authority area and to provide insight on how these levels are changing over time. This will provide the evidence base for decision making on the designation of rent control areas. By mandating cyclical assessments and reporting, the act seeks to ensure that any intervention is grounded in up‑to‑date information on rent conditions within the local authority.

The act sets out that these assessments must be completed within defined reporting periods (every five years), ensuring a regular cycle of review. Following on from the five-yearly assessment, local authorities must submit a report on their findings to the Scottish Ministers, which must state whether or not the local authority recommends the designation of any rent control areas.

Section 1 of the act sets out that local authorities must assess:

1. the level of rent payable under relevant tenancies of properties in the area of the local authority.

2. the rate of increase in rent payable under relevant tenancies of properties in the area of the local authority.

3. the impact that the level of rent and rate of increase in rent payable under relevant tenancies of properties has on properties, tenants and landlords in rural areas within the local authority where applicable.

Use of available evidence

In carrying out the assessment of rent conditions, local authorities are expected to make use of the best available evidence, including official statistics provided through the Scottish Government data pack and any other relevant information already available to the authority. A rent control area can only be recommended if there is sufficient evidence for authorities to form the opinion that this is necessary to protect the social and economic interests of tenants.

The Scottish Government are considering how to develop systems to support the long-term collection of data on rents but will not be available to local authorities for the first assessment cycle. While local authorities may choose to make use of the data collection powers available under the act at any time (although they cannot issue more than one request to an information holder in a 12 month period, and must cooperate with the Scottish Ministers to ensure neither party makes a repeat request in that period), there is no expectation that authorities will undertake extensive new data collection exercises in order to complete the first assessment.

The first assessment cycle should focus on assessment of the best available evidence currently available to local authorities. Future assessment cycles will benefit from developed data collection arrangements and an enhanced evidence base, informed in part by the experience of the first assessment cycle.

Where information is unavailable, incomplete or subject to significant limitations, those limitations should be clearly identified and explained within the assessment. Local authorities should also identify any evidence gaps which, in their view, may affect future assessments. This will help inform consideration of how the data can be developed for future assessment cycles.

The evidence available to support assessments will vary between local authority areas. Differences in the size and characteristics of local rental markets, as well as the availability of data, mean that authorities may not always be able to draw on the same evidence sources or undertake the same level of analysis. Local authorities should use their discretion in determining the most appropriate evidence to include in their assessment while having regard to this guidance.

While reports may differ in their level of detail and the evidence available, local authorities should seek to ensure that their assessment clearly explains the evidence considered, any limitations in that evidence, and the basis for any conclusions reached.

Relevant tenancies

A relevant tenancy for the purpose of the assessment is a Private Residential Tenancy (PRT) or an assured tenancy under the Housing (Scotland) Act 1988. While build to rent and mid-market rent properties are exempted from rent control restrictions under the act, these would still be relevant tenancies for the purpose of the assessment.

Characteristics of the rented sector

To ensure that any decisions about rent control take into account the circumstances in the local authority area, the assessment should contain an overview which sets out the characteristics of that authority’s rented sector covering:

• the size of the Private Rented Sector (PRS)
• changes in the size of the PRS over time
• the proportion of PRS stock by number of bedrooms
• information on length of tenure
• comparisons with other local authorities and Scotland as a whole
• a description of the urban and rural makeup of area

Information relating to the PRS in each area can be found in a number of official publications. This includes the Scottish Government Housing data contained within Scottish Household Survey: results, and Housing statistics: Stock by tenure.

These annual publications provide evidence on the composition and characteristics of households in Scotland on a number of indicators related to the private rented sector (PRS) in Scotland. The Scottish Government’s Annual Housing Statistics publication uses Scottish Household Survey data to make estimates about the number of PRS properties in Scotland.

The Scottish Landlord Register, owned by local authorities, also provides a source of information on the number of PRS properties and the number of landlords in Scotland, as landlords are legally required to register the properties they let out and update their details every three years.

In setting out information on the urban and rural makeup of the area, authorities should refer to the Scottish Government six-fold Rural Classification 2022.

The level of rent payable under relevant tenancies

Accurate assessment of the impact of the level of rent payable will be dependent on the availability of accurate information on rent levels within the local authority area. A local authority should therefore ensure that its assessment is informed by a comprehensive study of the evidence base, drawing on a wide range of available data. Assessments should include information from official publications as a minimum and may also include information collected directly from landlords using powers in the act, other information held by the local authority and any other publicly available information.

Official publications

Rent Service Scotland (RSS) collects a sample of private rental sector data as part of their statutory functions, including determining Local Housing Allowance. The data is also used to inform the annual Scottish Government publication on Private Rent Statistics. The data is a sample of rents collected at the Broad Rental Market Area (BRMA) level and is representative of these areas as a whole. This publication provides average estimates for rent levels by number of bedrooms in each BRMA from one to four-bedroom properties.

As part of an enhanced data collection, RSS have collected additional records as part of the 2025-26 sample. This enhanced data collection includes in-tenancy as well as advertised private rents. The aim of the collection is to ensure a larger sample is available at local authority level.

The historical BRMA rent data collected by RSS predominantly relates to advertised rents. The data collected for the 2025-26 period will result in a higher percentage of achieved rents than in previous data collection periods. Due to the change of the makeup of the RSS data for 2025-26, this will not be a direct like-for-like comparison to previous years.

The PRS data collected is a sample (proportion) of rental prices in a given area. It is then scaled up to provide an estimate of rental prices representative of the whole area. This data can only be used as a whole i.e. BRMA level data is unable to be disaggregated into component local authorities.

Note that the PRS official statistics include some data from local letting agents, landlords or letting websites, therefore there may be some overlap between the official statistics and locally sourced data.

Where information is available at the local authority level, then this level of information should be used as the primary measure. However, given the collection of information at the local authority level was only introduced for the 2025-26 iteration, BRMA information should be used where local authority level data is not available.

Where BRMA-level information is used, local authorities should recognise that BRMA boundaries do not always align with local authority boundaries and that the same BRMA data may be relevant to more than one local authority area. Local authorities may wish to consider any additional local knowledge or information they have which helps provide context for the interpretation of BRMA-level data within their area.

In order to assist local authorities in completing their first assessment of rent conditions, due in May 2027, the Scottish Government has committed to provide all local authorities with a data pack which captures the key official statistics required to complete the assessment in their area. This will include data from multiple publications covered in this report.

Collection of information about in-tenancy rents

The act gives local authorities and the Scottish Ministers new powers to collect information on in-tenancy rents directly from landlords. In order to support this collection of information, regulations are being prepared which will enable the Scottish Ministers and local authorities to apply to the First-Tier Tribunal (FTT) to impose a financial penalty of up to £1,000, where a landlord does not respond within 28 days to the request or knowingly provides false rental data.

Given the short timeframe between the introduction of these new powers and the initial submission date of May 2027, it is anticipated that existing data sources will underpin the first assessments rather than data collected directly from landlords using these new powers. However, where the powers in the act have been used during the reporting cycle, information on the data collected should be presented as part of the evidence base.

To support future cycles of local authority assessments, the Scottish Government are considering how to develop systems which make use of the new powers through a consistent national approach, reducing duplication and supporting comparable data collection across Scotland. This includes exploring the use of the existing landlord registration digital platform to collect rent data, subject to further development and engagement with local authorities.

Local knowledge

The local authority may also hold information on local conditions through other work undertaken such as preparation of the local housing strategy (LHS) and housing need and demand assessment (HNDA), supporting people faced with homelessness. The local authority may also monitor PRS rent levels within its area.

Where this is the case, any other relevant information held by the local authority may also be used to support the assessment. If a local authority intends to rely on existing information held by it, it should ensure that it does so in accordance with data protection law.

Other publicly available information

Information on rent levels may also be available from a variety of public sources. For example, data sets and research studies are often made available by local letting agencies, letting platforms or research institutions. Where such information is available, this may be included in the assessment to build a robust and thorough understanding of rent conditions in the area.

Where such information is incorporated into the assessment, care should be taken in how the figures are presented and the source of the information should be clearly reported. Such estimates may not meet the same level of robustness as official statistics, and some or all of the data available may already be incorporated into the data held by RSS due to the data collection methods employed.

Areas where further investigation is required

As outlined above, the local authority may identify gaps in the knowledge base. For example, although there may be robust estimates available across the entire local authority area, detailed information on a specific sub-locality may be limited. Information on any such gaps should be included in the assessment, as this will inform the action required in advance of future assessments.

Local rent conditions

In presenting information on rent levels, the local authority should consider how rents within their area compare with those in other parts of Scotland, and where relevant, with neighbouring local authorities or rental market areas. The authority should also consider whether there are particular local characteristics which may help explain any differences.

The purpose of this analysis is to provide context for understanding rent conditions within the area. While the assessment does not require local authorities to apply a prescribed affordability measure or affordability threshold, authorities may wish to consider what the level of rents indicates about the accessibility of the private rented sector in their area and any particular pressures that may exist within the local rental market.

Local authorities may also wish to consider other indicators which help provide context for understanding local rent conditions. This may include consideration of Local Housing Allowance rates and the relationship between those rates and prevailing rents within the area. Where such information is used, local authorities should recognise its limitations and consider it alongside the wider evidence base.

The rate of increase in rent payable under relevant tenancies

The act not only requires assessments to consider the levels of rent payable in the area, but also how the levels of rent payable have changed over time.

Having identified all relevant sources of information in relation to rent levels, the report should then analyse how rents have changed over time, alongside comparisons to a variety of economic indicators.

As a minimum, the assessment should include details of changes over the preceding five-year period. However, the authority may choose to present information over a longer time period where this is relevant to the assessment and such information is available.

Changes in rental levels over time

The local authority should assess changes in rent levels over time to understand how private rented sector rent levels are changing within the area and to identify longer-term trends. This analysis can help the authority to determine whether rents are increasing steadily, experiencing periods of rapid growth, or remaining relatively stable over time, providing important context for understanding local rental market conditions. Information for this assessment can be obtained from the Scottish Government's annual Private Sector Rents Statistics publication, which provides data on rent levels and changes over time at national and local rental market area level.

Changes in rental levels compared to CPI inflation

The local authority should compare changes in rent levels with Consumer Price Index (CPI) inflation to assess whether rents are increasing at a faster rate than the general cost of living. This comparison helps to identify whether tenants are facing additional affordability pressures beyond those experienced by households more generally. Where rent increases consistently exceed inflation, this may indicate that housing costs are taking up an increasing proportion of household expenditure. Rent data can be sourced from the Scottish Government's Private Sector Rents Statistics publication, while inflation data can be obtained from the Office for National Statistics Consumer Price Index (CPI).

Changes in rental levels compared to trends in average earnings

The local authority should compare changes in rental levels with trends in average earnings to assess whether wages and housing costs are changing at the same rate. This provides an indication of the extent to which households are likely to be able to absorb rent increases through income growth. Where rents rise more quickly than earnings over a sustained period, affordability pressures may increase, particularly for lower and middle-income households. Rent data can be obtained from the Scottish Government's Private Sector Rents Statistics publication, while information on earnings trends can be sourced from the Annual Survey of Hours and Earnings (ASHE) - Office for National Statistics.

This comparison is intended to provide contextual information on the relationship between rent increases and household resources. It is not intended to establish a specific affordability threshold or define whether rents in an area are affordable or unaffordable.

Changes in rent levels compared to household income

The local authority should compare changes in rent levels with household income to understand the relationship between housing costs and households' ability to meet those costs. This assessment can help identify whether rent increases are becoming less affordable for residents and whether particular groups may be at greater risk of financial hardship or housing insecurity. Comparing rents with household incomes using Financial Information from the Scottish Household Survey 2024, Regional gross disposable household income: local authorities by ITL1 region and Earnings and hours worked, place of residence by local authority: ASHE Table 8 provides a broader measure of affordability than earnings alone, as it reflects the resources available to different household types. Rent data can be obtained from the Scottish Government Private Sector Rent Statistics, Scotland, 2010 to 2025.

The purpose of this comparison is to support understanding of how housing costs are changing relative to household resources over time. Local authorities are not expected to apply a prescribed affordability threshold as part of this assessment.

Areas of heightened rent pressure

When carrying out the assessment, the local authority may identify particular localities where rent levels are significantly higher or are rising more quickly than the rest of the local authority area.

Where such localities are identified, the assessment should include details of the nature of the pressure, alongside evidence that demonstrates this pressure.

Other matters that may be considered

In addition to the statistical information set out above, the local authority should also include information on any other relevant factors that could influence current or future rent levels, the rate of change in rent levels, or the impact of those changes on tenants, properties and landlords. This will provide wider context for the assessment and help explain trends which may not be evident from rental data alone.

Relevant factors may include significant changes in local economic conditions, such as the arrival, expansion or closure of major employers, planned infrastructure or regeneration projects, changes in population or migration patterns, the development of higher or further education facilities, shifts in housing supply, including new build activity and conversions, or changes in demand arising from tourism, short-term lets or other local market pressures.

Where relevant, local authorities may also wish to consider expected future changes in local rental market conditions. Any such information should be clearly distinguished from evidence of current rent conditions and should be used to provide context rather than as a substitute for evidence gathered through the assessment process.

Engagement with tenants, landlords and other relevant stakeholders can provide valuable insight into local rent conditions and the experiences of those affected by them. While there is no statutory requirement in the act for local authorities to undertake consultation on their assessment, they may choose to engage with relevant stakeholders where they consider that this would support them to gain a fuller understanding of the nature of rent conditions in their area, and the impact of rent conditions on properties, tenants and landlords.

Where such engagement has been undertaken, details of this should be included in the assessment.

The impact of rent payable and rate of change

Assessing the impact on tenants

As part of the report to the Scottish Ministers (set out in Section 2 of this guidance), the local authority will need to consider how rent levels and rates of change are impacting on tenants. Therefore, the assessment should include an analysis of these considerations.

An analysis of the impact that rent levels and rates of increase are having on tenants should help to explain how current rent levels and recent rental trends are affecting the affordability, accessibility and sustainability of housing within the private rented sector.

In assessing the impact of rent levels and the rate of increase in rents on tenants, the local authority should consider whether those factors are creating affordability pressures for households in the area. This may include consideration of whether rents are increasing more quickly than CPI, earnings or household incomes, reducing tenants' disposable income or limiting their ability to meet other essential living costs. In doing so, the local authority may also wish to consider wider socio-economic indicators, such as measures of poverty, deprivation and household incomes, as contextual evidence alongside information on rent levels and rent increases.

The assessment should also consider whether current rent levels or rent increases are affecting access to housing within the private rented sector. This may include evidence that households are experiencing difficulties securing or retaining suitable accommodation, that tenants are being required to move in search of more affordable housing, or that affordability pressures are affecting housing choice. The local authority may wish to draw on relevant local evidence, including homelessness data, housing needs assessments, waiting list information, tenancy sustainment data, stakeholder engagement and other sources that help to illustrate the experiences of tenants in the area.

Assessing the impact on landlords

While the act does not place a specific requirement on local authorities to assess the impact of rent control on landlords when forming a recommendation, local authorities should have regard to impacts of their recommendation on those affected by it. Information available to the authority regarding impacts on landlords may also assist the Scottish Ministers in their consideration of whether designation of a rent control area represents a necessary and proportionate intervention. In making their decision on whether or not to lay regulations to designate a rent control area, the Scottish Ministers are required, under section 9 of the act, to consider if this is a necessary and proportionate control of landlords’ use of their property in the area. Therefore, the local authority may include any relevant considerations in relation to the impact on landlords.

Any analysis of the impact that rent levels and rates of increase are having on landlords may consider how current rent levels and recent rental trends are affecting the profitability and sustainability of renting out properties in the private rented sector. The local authority may include available information on changes in the size of the rented sector over time and what this information says about the number of properties in the area, as well as the number of landlords and how many properties landlords tend to own. They may also wish to include any other sources of information that give insight into how rent levels are impacting on landlords. For example, they may include information from relevant research publications, or insights gained from their regular engagement with landlords or representative groups.

Assessing the impact on rural areas

The act specifies that the local authority must assess the impact that the level of rent payable and the rate of increase in rents under relevant tenancies is having on properties, tenants and landlords in rural areas within the area (see section 1(1)(a)(iii) of the act). This obligation only applies where applicable so a local authority with no rural areas is not expressly required to conduct this analysis.

The need to consider the impact of rent conditions in rural areas reflects the potential for the nature and extent of the impact in rural areas to differ from, and in some cases be more pronounced than, the impact in urban areas.

The specific statutory requirement relates to rural areas. However, when preparing their report and recommendation, local authorities will need to consider rent conditions across their area as a whole. Understanding how rent conditions affect different parts of the local authority area, including both rural and urban areas, will help authorities determine whether the designation of a rent control area is necessary and, if so, whether this should apply to all or part of the area. Further guidance on preparing recommendations is set out in Section 2.

As part of the assessment, the local authority should present in their report any available evidence on rural private rented sector conditions and assess whether the interaction of these factors indicates particular pressures or trends that are not apparent at a wider local authority level.