SCOTLAND’S HOUSING SHAKE UP – WHAT THE HOUSING (SCOTLAND) ACT 2025 MEANS FOR RESIDENTIAL TENANCIES

The Housing (Scotland) Act 2025, which contains a package of reforms to the private rented sector, received Royal Assent on 6 November 2025. While now an Act of the Scottish Parliament, provisions are being brought into force in stages, with a substantial number commencing on 1 April 2026 and others to follow in subsequent phases. 

Rent control areas and local authority powers to collect data

The Act gives the Scottish Ministers powers to introduce rent control areas for private residential tenancies (PRTs). In rent control areas, annual rent increases in PRTs (both during and between tenancies) will be capped to the lower of (1) CPI+1% and (2) 6%. The Scottish Ministers have powers to designate exemptions (e.g. mid-market rent and build-to-rent) from the rent control regime. 

The framework for assessing rent conditions and designating rent control areas will come into force on 1 April 2026. This includes duties on local authorities to undertake periodic assessments on rent conditions and submit reports to the Scottish Ministers, with the first such reports being due by 31 May 2027. Only after the Scottish Ministers receive and review these reports can they consider designating any area as a rent control area, meaning that rent controls will not take effect immediately. 

However, landlords should be aware that from 1 April 2026 (when the rent control framework is commenced), local authorities will have powers to gather data from landlords of PRTs and assured tenancies (including short assured tenancies) when preparing reports to designate rent control areas. There is a detailed list in the Act of the information which may be requested, including tenancy type, property size and recent rent increases. 

For landlords with multiple let properties, this could involve a significant administrative exercise and while the guidance for local authorities in carrying out assessments has not yet been issued, it may be sensible to plan ahead for how such information can be collated and provided if required. 

The Act contains penalty provisions of up to £1K per property for failing to provide the information within the prescribed timescale, or providing false or misleading information. These penalty provisions are not being commenced at this stage.  

Other forthcoming reforms

Other key points in the Act include: 

• PRTs outwith rent control areas – Rent increases will not be capped, however from 1 April 2027 the rent determination process will be amended so that if a tenant were to formally challenge a rent increase, the rent would be the lower of that specified in the landlord’s rent increase notice and the open market rent. 
  
  Rent increases will continue to be limited to once per year and this will be extended so that any rent increase in the first year will be prohibited. There is no commencement date for this change yet.
• Eviction delays – A duty will be placed on the First-tier Tribunal to consider delaying evictions. The impact of any non-delay on the tenant and members of the tenant’s household must be balanced with the impact of any delay on the landlord. Relevant factors include detrimental effects on these parties of any non-delay or delay (as the case may be) due to health, disability or terminal illness; potential financial hardship; and whether any seasonal factor would contribute towards any such detrimental effect or hardship. There is no commencement date for this change yet.
• Increased damages for wrongful eviction – The potential damages payable by a landlord for a wrongful eviction will be increased to a minimum of 3x the “relevant sum” and a maximum of 36x the “relevant sum”. The “relevant sum” is the higher of one month’s rent and £840. There is no commencement date for this change yet.
• Terminating joint tenancies – The PRT regime is due to be changed with effect from 1 April 2027 so that where the tenancy is a joint tenancy, one tenant can terminate the tenancy for all tenants.
• Phasing out of older tenancies – The Scottish Ministers have powers to convert assured tenancies (including short assured tenancies) to PRTs on an appointed date. There will be a minimum 12 month lead in time. If this is brought into force, one effect will be that “no-fault” termination of short assured tenancies will no longer be possible.

• Enhanced tenant rights in respect of alterations and pets – Tenants under PRTs will be able to make “Category 1” alterations without landlord consent and “Category 2” alterations with landlord consent, which must not be unreasonably refused. Details of what qualifies as each category (and when consent can reasonably be refused) will be set out in regulations.

  Tenants will also have the right to request permission to keep a pet. Landlords must not unreasonably refuse such requests, and future regulations will set out when refusal may be considered reasonable. 

  These rights will only come into effect once the Scottish Ministers make (and bring into force) the detailed regulations. 

• Housing emergencies – The Scottish Ministers have powers to make regulations for the declaration of a national housing emergency and to issue guidance to local authorities about the declaration of a local housing emergency. The effect and actions of a “national housing emergency” and a “local housing emergency” will be set out in secondary legislation.
• Review of eviction grounds – The Scottish Ministers must complete a review of the eviction grounds for PRTs by 7 November 2027.
• Rural impact assessment – The Scottish Ministers must assess how the 2025 Act affects rural and island communities and report their findings to the Scottish Parliament by 7 November 2026. 

Separately, the Renters’ Rights Act 2025 (an Act of the Westminster Parliament) includes a UK wide provision preventing landlords from discriminating in the letting of a property on the basis that a child would live with or visit the tenant, or that the tenant would claim social security benefits. Terms in standard securities and insurance contracts requiring discrimination on similar grounds in respect of possible lets will be unenforceable. Insofar as Scotland is concerned, these anti-discrimination provisions will take effect on 1 May 2026. 

If you would like to discuss any of these aspects further, please get in touch with your Turcan Connell contact or email enquiries@turcanconnell.com.