From 1 April 2026, Scotland’s rent‑control rules will formally set out which homes sit outside local caps. The Private Housing Rent Control (Exempt Property) (Scotland) Regulations 2026 (SSI 2026/158), signed on 17 March and approved by MSPs, confirm two exemptions: build‑to‑rent and mid‑market rent. Ministers say tenants’ and landlords’ groups were consulted before the rules were laid.

Why it matters up here: plenty of Northern landlords, funds and councils manage homes on both sides of the Border. Clarity on Scottish exemptions helps housing teams in Berwick‑upon‑Tweed, Carlisle and Newcastle align allocations, rent‑setting and budget plans when families move for work or study, and gives developers confidence when modelling schemes that straddle regional labour markets.

Build‑to‑rent is defined in plain terms. The property must be built, converted or renovated for residential use; sit within a “relevant development”; have a completion date on or after 31 August 2021; appear on the landlord register; and, since completion, have been used solely for private residential tenancies under Scotland’s 2016 Act. If those conditions hold, the home is exempt from the extra rent‑control limits that apply in designated control areas.

“Relevant development” means a group of six or more homes covered by the same planning permission and held by the same owner (or joint owners). The development must have been used only for private residential tenancies since completion. Any break in that use means the property won’t qualify. For North‑based investors active in Edinburgh, Glasgow or Aberdeen, this ties the exemption squarely to purpose‑built rental blocks rather than ad‑hoc conversions.

There are clear stop‑points. A build‑to‑rent home loses its exemption the moment it’s lived in by the owner, used as a short‑term let, removed from the landlord register, or no longer part of the relevant development. In practice that means operators should avoid dipping homes into the short‑term market for events or festivals if they want to keep the exemption intact.

The regulations spell out what “built, converted or renovated” means. A conversion must have secured planning permission for change of use to a dwelling. A renovation counts where the home was previously unfit to live in because the structure was unsafe without major works beyond normal refurbishment, or where making it habitable required demolition of the existing structure. The completion date is the acceptance of a completion certificate under the Building (Scotland) Act 2003, or an earlier temporary occupation permission if granted.

Mid‑market rent is the second exemption. A home qualifies where the landlord is restricted from increasing rent-either because the landlord (or another party tied to the scheme) received Scottish Government or council funding with conditions, or because the tenancy agreement itself limits uprating-and the rent is not taken above the specified level. This reflects the long‑standing mid‑market model used by housing associations and council‑owned companies.

That “specified level” is anchored to the median market rent for that size of home in the relevant Broad Rental Market Area, as defined by Rent Officers. If no reliable data exists for that exact size, the median for a similar‑sized home in the same area is used. The use of the median, rather than an average, is designed to filter out extreme highs and lows and keep mid‑market homes genuinely mid‑priced.

How the exemptions interact with rent‑control areas is the crux for budgeting. In any designated rent‑control area, build‑to‑rent and mid‑market rent homes are not subject to the extra Part 4A restrictions. They are, however, still covered by the national Part 4 rent‑increase rules that apply across Scotland. Outside control areas, Part 4 applies to everyone as usual.

For landlords and operators, the paperwork will decide eligibility. Keep the landlord‑register entry current, retain completion certificates and any temporary occupation permissions, and document planning references that show the homes sit within one permission. If a scheme relies on mid‑market terms, be ready to evidence the funding conditions or tenancy wording that caps rent and show how the BRMA median has been calculated.

For tenants, the change should be transparent. If your home is marketed as mid‑market rent, ask your landlord or managing agent to confirm the BRMA used and the current median for your property size. In build‑to‑rent blocks, rent uplifts in control areas will follow the national Part 4 rules rather than the tighter local caps-so expect uprating to mirror the Scotland‑wide framework rather than a local ceiling.

Key dates are straightforward. Ministers announced their intention to introduce rent control on 31 August 2021, which is the reference point for build‑to‑rent completion dates. The regulations were made on 17 March 2026 and take effect on 1 April 2026. Councils, housing associations and developers operating across the North and Scotland should adjust letting plans now to reflect which homes qualify and which do not.