Local Government, Housing and Planning Committee
At its meeting on 24 February 2026, the Local Government, Housing and Planning Committee considered the following affirmative instruments:
Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2026 [draft];i
Private Housing Rent Control (Exempt Property) (Scotland) Regulations 2026 [draft];i
First-tier Tribunal for Scotland Local Taxation Chamber and Upper Tribunal for Scotland (Composition and Rules of Procedure) (Miscellaneous Amendment) Regulations 2026 [draft];i
First-tier Tribunal for Scotland (Allocation of Functions to the Local Taxation Chamber) Regulations 2026 [draft]i
A summary of each of the instruments, our consideration of them and the conclusions we have reached is provided below.
The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2026 [draft] were laid in the Scottish Parliament on 28 January 2026 and referred to the Local Government, Housing and Planning Committee.i
The instrument is made in exercise of the powers conferred by section 33(1) and (2) of the Local Government in Scotland Act 2003 (“the 2003 Act").i
As the Policy Note to the draft regulations explains:
“In particular, the Regulations:
establish a national default rate for Council Tax premiums for second homes and long-term empty homes of 100 per cent; and
enable local authorities to vary that rate, including increasing or reducing the premium, applying no premium, or applying a discount, and to apply different approaches for different cases, classes of dwelling or areas.
This amendment gives local authorities greater discretion over the Council Tax treatment of unoccupied dwellings in their areas, allowing them to respond to local housing pressures. In exercising these powers, local authorities will be supported by statutory guidance issued by the Scottish Ministers.”i
If approved, the instrument comes into force from 1 April 2026.
The Delegated Powers and Law Reform (DPLR) Committee is required to consider every instrument laid before the Parliament and decide whether to draw it to the attention of the Parliament on any of the “reporting grounds” set out in Rule 10.3 of the Parliament's standing orders.
The DPLR Committee considered the regulations at its meeting of 3 February 2026. The Committee agreed that it did not need to draw the Parliament's attention to the draft regulations on any of the reporting grounds.i
At its meeting on 3 February 2026, the Committee agreed to write to local authorities to seek views on the draft regulations.i The responses received broadly welcomed the flexibility that the regulations provide to local authorities. Highland Council and Inverclyde Council noted that variation of council tax premiums could influence owner behaviour in relation to second and long-term empty homes to address housing challenges.ii
In its response, South Ayrshire Council noted that collection rates for properties that are subject to existing council tax premiums are below that of standard collection rates, noting that the decision to increase the premium rate could potentially adversely impact collection.ii
Aberdeenshire Council welcomed the enhanced flexibility provided by the regulations and will propose to agree a council tax premium. It noted that long-term empty homes and second homes arise for a variety of reasons, particularly within a large and predominantly rural authority such as Aberdeenshire. It will therefore consider the deferral of the council tax premium for long-term empty properties and second homes in certain cases, to ensure that any increase in premiums is proportionate, targeted, and responsive to local circumstances.ii
At its meeting on 17 February 2026 the Committee took evidence from two panels of witnesses on a number of housing-related statutory instruments, who were broadly supportive of the powers they would provide local authorities.v Living Rent highlighted the positive impact too that the use of similar powers has had in Wales. ALACHO however noted that there can at times be complex reasons for a property being empty, and the Committee heard that some properties may not be suitable for permanent housing stock.
Scottish Land and Estates raised concerns at that evidence session that local authorities will need to take into account the rural context where certain properties might need to be left empty for periods, for example accommodation for workers linked to estate operations. They called for clear guidance for local authorities so that such properties are exempted from paying a premium. They also believe there is a risk that local authorities are effectively incentivised not to exempt such properties, because of the additional council tax income they might make.
The Committee also received written submissions from the Scottish Association of Landlords (SAL) and the Association of Local Authority Chief Housing Officers (ALACHO).ii
At its meeting on 24 February 2026, the Local Government, Housing and Planning Committee took evidence on the instruments from the Cabinet Secretary for Finance and Local Government, Shona Robison MSP, and officials.v
The Cabinet Secretary noted that the Scottish Government will monitor the impact of the regulations in the future on changes to housing use, utilising data provided by local authorities. She agreed that guidance for local authorities will be important in exercising the powers provided by the regulations, in particular the discretions included to ensure they reflect local circumstances (such as meeting rural housing needs for seasonal worker accommodation).
The Committee asked the Cabinet Secretary about the fairness of charging higher premiums for second home owners, and she stressed that the regulations have sufficient safeguards built into them, and that the overarching context is the need to address a housing shortage.
After taking evidence, the Committee was invited to consider the following motion in the name of the Cabinet Secretary:
S6M-20608: That the Local Government, Housing and Planning Committee recommends that the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2026 [draft] be approved.
After debate, the motion was agreed to by division (For 4, Against 0, Abstentions 2).
The Private Housing Rent Control (Exempt Property) (Scotland) Regulations 2026 [draft] were laid in the Scottish Parliament on 29 January 2026 and referred to the Local Government, Housing and Planning Committee.i
The instrument is made in exercise of the powers conferred by section 17D(1) of the Private Housing (Tenancies) (Scotland) Act 2016 ("the 2016 Act"). i
As set out in the Policy Note, this instrument sets out the description of properties exempt from rent control restrictions in the 2016 Act, as amended by the Housing (Scotland) Act 2025 ("the 2025 Act").ii
The regulations introduce specific exemptions for mid-market rent properties and build-to-rent properties from the rent control provisions introduced by the 2025 Act.
If approved, the instrument comes into force from 1 April 2026.
The Delegated Powers and Law Reform (DPLR) Committee is required to consider every instrument laid before the Parliament and decide whether to draw it to the attention of the Parliament on any of the “reporting grounds” set out in Rule 10.3 of the Parliament's standing orders.
The DPLR Committee considered the regulations at its meeting of 10 February 2026. The Committee agreed that it did not need to draw the Parliament's attention to any of the draft regulations on any of the reporting grounds.i
In its scrutiny of the Housing (Scotland) Bill at Stage 1 the case was made to the Committee that the mid-market rent (MMR) sector should be excluded from rent controls, and it concluded that the Bill should be amended accordingly to introduce an exemption for MMR properties.i
The Committee also heard at Stage 1 about the importance of sustaining inward investment in the housing sector, and the risk that introducing rent controls may limit that investment. The Stage 1 report on the Bill noted that:
“There is strong evidence that investment in the build-to-rent sector has stalled whilst it remains unclear how rent controls will operate. In the long-term this may be to the detriment of the supply of rental properties, exacerbating existing shortages.”i
At its meeting on 3 February 2026 the Committee agreed to take oral evidence on the draft affirmative instrument.iii It also received written submissions from the Scottish Association of Landlords (SAL) and the Association of Local Authority Chief Housing Officers (ALACHO).iv
Witnesses at the meeting on 17 February 2026 expressed a range of views on the exemption of mid-market rent (MMR) and build-to-rent (BtR) homes from rent controls.v Most witnesses were broadly supportive of exempting MMR properties. The Scottish Federation of Housing Associations for example said that it makes economic sense and will aid housing supply, particularly important in the current housing emergency. They were confident that it balances housing supply with sufficient tenant protection.
Citizens Advice Scotland also highlighted the important context of the current housing emergency, but said they wished to see the impact of the regulations on rent levels kept under review. The Chartered Institute of Housing supported the exemptions for both MMR and BtR properties, saying they will provide certainty and choice for tenants.
Living Rent however did not support either exemption, and expressed concerns about the impact of BtR in particular on housing in cities. They provided the example of buildings in Edinburgh and Glasgow where social landlords have rented out buildings to developers for 5-10 years noting that, where those contracts are coming to an end, private MMR tenants are now seeing 50% rent increases.
Living Rent were also concerned that the exemption of BtR properties will have a negative impact on city centres, describing the significant investment currently going into Glasgow which could lead to many properties becoming unaffordable to rent and create a two-tier system. Scottish Land and Estates highlighted that in rural areas property development may only be of one or two units, which would not bring it into the 6-unit threshold in the regulations for a BtR property to qualify for an exemption.
At its meeting on 24 February 2026, the Committee took evidence on the instruments from the Cabinet Secretary for Housing, Màiri McAllan MSP, and officials.v
The Cabinet Secretary stressed that the current housing emergency is multi-faceted and increasing investment in the housing sector is an important component of tackling it. The Scottish Government intends to monitor the impact of the regulations through the data that will be collected on private rents and monitoring trends.
When asked about how the Scottish Government took account of the different urban and rural contexts when arriving at its definition of the BtR exemption applying to buildings of more than six units, the Cabinet Secretary noted that a six-property unit is relatively small compared with many urban developments, and that in her view it strikes the right balance.
The Committee asked the Cabinet Secretary about concerns that MMR tenants may not be able to contest rent increases. She noted that the exemption would not apply in circumstances where the terms of an MMR exemption are not being met. She further noted that the rent adjudication service is available to all PRS tenants, and that the Housing (Scotland) Act 2025 strengthened the rules such that rents going to adjudication cannot not be increased above those proposed by the landlord.
The Cabinet Secretary said that she chose not to put a time limit on the definition of a BtR property in order to provide long-term certainty to the market, and that rather than there being a risk to creating a two-tier private rental system it is important there are different rental 'offers' available to private tenants.
After taking evidence, the Committee was invited to consider the following motion in the name of the Cabinet Secretary:
S6M-20617: That the Local Government, Housing and Planning Committee recommends that the Private Housing Rent Control (Exempt Property) (Scotland) Regulations 2026 [draft] be approved.
After debate, the motion was agreed to by division (For 5, Against 1, Abstentions 0).
The Committee considered the following Regulations together:
First-tier Tribunal for Scotland Local Taxation Chamber and Upper Tribunal for Scotland (Composition and Rules of Procedure) (Miscellaneous Amendment) Regulations 2026 [draft];i
First-tier Tribunal for Scotland (Allocation of Functions to the Local Taxation Chamber) Regulations 2026 [draft].i
A summary of each of the instruments is provided below, followed by our consideration of them and the conclusions we have reached.
The First-tier Tribunal for Scotland Local Taxation Chamber and Upper Tribunal for Scotland (Composition and Rules of Procedure) (Miscellaneous Amendment) Regulations 2026 [draft]i were laid in the Scottish Parliament on 6 February 2026 and referred to the Local Government, Housing and Planning Committee.
The instrument is made in exercise of the powers conferred by:
sections 10(2) and (3), sections 38(1), (2) and (3), and paragraph 4(2) of schedule 9 of the Tribunals (Scotland) Act 2014;i and
section 44(2) and (3) of the United Nations Convention on the Rights of the Child (Incorporation) (Scotland) Act 2024. i
As set out in the Policy Note:
"These Regulations make amendments to the composition and rules of procedure of the Local Taxation Chamber of the First-tier Tribunal for Scotland and the Upper Tribunal for Scotland to support the hearing and determination of visitor levy appeals."i
If approved, the instrument comes into force from 1 April 2026.
The First-tier Tribunal for Scotland (Allocation of Functions to the Local Taxation Chamber) Regulations 2026 [Draft] were laid in the Scottish Parliament on 9 February 2026 and referred to the Local Government, Housing and Planning Committee.i
The instrument is made in exercise of the powers conferred by section 20(2)(b) of the Tribunals (Scotland) Act 2014.i
As set out in the Policy Note, the instrument allocates functions relating to visitor levy appeals to the Local Taxation Chamber of the First-tier Tribunal for Scotland. This includes:
To allocate responsibility for determining visitor levy appeals to the Local Taxation Chamber of the First-tier Tribunal for Scotland.
To ensure that appeals arising under the Visitor Levy (Scotland) Act 2024 are considered within a specialist tribunal chamber with appropriate taxation expertise.
To support the effective and consistent operation of the visitor levy appeals framework established by secondary legislation.
To provide clarity and legal certainty regarding the tribunal forum responsible for hearing visitor levy appeals.i
If approved, the instrument comes into force from 1 April 2026.
The Delegated Powers and Law Reform (DPLR) Committee is required to consider every instrument laid before the Parliament and decide whether to draw it to the attention of the Parliament on any of the “reporting grounds” set out in Rule 10.3 of the Parliament's standing orders.
The DPLR Committee considered these regulations at its meeting of 17 February 2026. The Committee agreed that it did not need to draw the Parliament's attention to either of the draft regulations on any of the reporting grounds.i
At its meeting on 3 February 2026, the Committee agreed to recommend approval of the Visitor Levy (Reviews and Appeals) (Scotland) Regulations 2026.i These Regulations establish the statutory framework for reviews and appeals relating to decisions made by local authorities under the Visitor Levy (Scotland) Act 2024.ii
The draft affirmative regulations relate to that appeals process (i.e after the accommodation provider has submitted a review notice to the local authority and heard the outcome). The Regulations provide that all visitor levy functions of the First-tier Tribunal are to be exercised by the Local Taxation Chamber. Those functions will include determining appeals following local authority reviews in relation to:
conclusions made as a result of a local authority assessment of visitor levy payable; this includes that the person is liable to pay visitor levy, the amount of levy payable, and the conclusion that a return submitted is incorrect because of a deliberate or careless miscalculation;
decisions of a local authority relating to the operation of a local authority visitor levy scheme;
the exercise of enforcement powers under Part 5 of the 2024 Act; and
the imposition of penalties and interest.
At its meeting on 24 February 2026, the Local Government, Housing and Planning Committee took evidence on the two affirmative instruments from the Minister for Public Finance, Ivan McKee MSP, and officials.i
The Minister confirmed that accommodation providers will not be required to pay a fee for any appeals they submit. He advised that the estimated costs for the local Taxation Chamber are £150k-£300k, but that it is difficult to anticipate the caseload given that the first visitor levy scheme is yet to come into effect. He also said that the Scottish Government funds the running costs of the Chamber, and that guidance on implementing a visitor levy will be updated as required.
After taking evidence, the Committee was invited to consider the following motions in the name of the Minister for Public Finance:
S6M-20735: That the Local Government, Housing and Planning Committee recommends that the First-tier Tribunal for Scotland Local Taxation Chamber and Upper Tribunal for Scotland (Composition and Rules of Procedure) (Miscellaneous Amendment) Regulations 2026 [draft] be approved.
S6M-20734: That the Local Government, Housing and Planning Committee recommends that the First-tier Tribunal for Scotland (Allocation of Functions to the Local Taxation Chamber) Regulations 2026 [draft] be approved.
The motions were agreed to.
The Committee recommends to the Parliament that the following draft regulations be approved.
Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2026 [draft]
Private Housing Rent Control (Exempt Property) (Scotland) Regulations 2026 [draft]
First-tier Tribunal for Scotland Local Taxation Chamber and Upper Tribunal for Scotland (Composition and Rules of Procedure) (Miscellaneous Amendment) Regulations 2026 [draft]
First-tier Tribunal for Scotland (Allocation of Functions to the Local Taxation Chamber) Regulations 2026 [draft]