Landlords are set to be banned from increasing rent for as long as five years under SNP plans which experts warn could trigger devastating impacts.
As part of enforcing long-term market controls, the Scottish Government and the Scottish Greens have announced proposals which include rent caps as low as zero per cent.
Plans could also give courts the ability to delay evictions during the winter months and block landlords from "unreasonably refusing" pets or requests to paint the walls.
If the Housing (Scotland) Bill is approved by Members of the Scottish Parliament, the bill will become law.
Landlords are set to be banned from increasing rent for as long as five years under SNP plans which experts warn could trigger devastating impacts
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However, experts say the new plans will reduce investment in Scotland's private rental sector and force more landlords out of the sector – in turn slashing the number of rental homes.
It follows the failure of previous market controls introduced by former first minister Nicola Sturgeon, which saw Scotland suffer the largest rises of anywhere in the UK.
Tenants in Scotland were hit with the highest annual rent growth of any UK nation at 11.6 per cent.
A cap was introduced in 2022 but it did not initially apply to new tenancies - which caused landlords to bump up rent when their properties became vacant.
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Four Scottish councils have announced a "housing emergency".
Paul McLennan, the SNP’s Housing Minister and Patrick Harvie, a Green minister in Humza Yousaf’s government, revealed the new legislation.
McLennan said: "Early action, through the kinds of measures included in the Housing Bill, results in fewer people reaching the point of housing crisis.
"It also means people facing homelessness have more choice and control over where they live, helping them to maintain relationships in their community and stay in work."
Tenants in Scotland were hit with the highest annual rent growth of any UK nation at 11.6 per cent
PAJohn Blackwood, chief executive of the Scottish Association of Landlords, said: “The rent control proposals, as has been seen in places like Ireland which has similar measures, will see reduced investment and more landlords leaving the sector, leading to higher costs for tenants.
"The effects of Scottish Government policies in the private rental sector are already being felt, with rising costs reducing supply and placing more pressure on council and housing association properties that they are struggling to cope with."
DJ Alexander, Scotland’s largest letting agent, has warned that landlords will walk away.
David Alexander, the letting agent’s chief executive, said: "Once again, rent control areas are being proposed without evidence that they have ever worked anywhere in the world.
"Crucially, it ignores the fact that landlords, property investors and corporate institutions have the very real option of relocating elsewhere or of simply walking away from the sector. There may be many property investors who feel that enough is enough."