Scottish ministers have produced draft Regulations specifying the types of properties that are proposed to be exempt from rent control provisions. This blog discusses the latest proposals contained within the Private Housing Rent Control (Exempt Property) (Scotland) Regulations 2026.
What Properties are Exempt?
As anticipated, there are two primary categories of exempt properties:
- Mid‑Market Rent (MMR) properties
- Build‑to‑Rent (BtR) developments
Mid Market Rent (MMR): Criteria for Exemption
MMR housing is designed for households who do not qualify for social housing but cannot afford full market rent. These homes usually incorporate public funding conditions or contractual mechanisms that cap rent levels, which makes additional statutory rent controls unnecessary.
An MMR property qualifies as exempt if:
- The landlord, or a third party, has received Scottish Government or local authority funding tied to conditions that restrict rent increases; or
- The tenancy agreement itself includes terms that restrict how much and how often rent can increase
These restrictions must prevent the rent from rising above the median of market rent levels for comparable properties in that area.
Build to Rent (BTR): Criteria for Exemption
BTR is a growing sector featuring professionally managed, purpose‑built homes for long‑term private renting. The Regulations confirm that BtR developments will be exempt provided they meet defined development‑level and property‑level criteria.
A BTR Property Qualifies as Exempt if:
- It is part of a “relevant development” of six or more properties built, converted, or renovated for private residential tenancies;
- The development was completed on or after 31 August 2021;
- The property is included in the landlord’s entry in the landlord register.
The exemption can be lost if the property becomes owner‑occupied, used as a short‑term let, or removed from the landlord register.
What Happens Next?
The Regulations remain subject to Scottish Parliamentary approval, but are expected to take effect on 1 April 2026.
Once adopted, they will form a crucial part of the permanent rent control framework created under the Housing (Scotland) Act 2025.
Navigating PRS Rent Controls and Exempt Properties
If you have questions about rent control exemptions, Mid Market Rent, Build to Rent developments, or any other private rented sector matters in Scotland, our specialist PRS team is here to help.
