Navigating the Housing (Scotland) Act 2025: Essential Steps for Landlords Ahead of Rent Control and Tenant Rights Changes

What the Housing (Scotland) Act 2025 Means for Landlords

The Housing (Scotland) Act 2025, which received Royal Assent earlier this year, marks a pivotal shift in Scottish residential lettings. The Act introduces a phased approach where local authorities will conduct rent condition assessments by 31 May 2027. These assessments may lead to the designation of rent control areas by 2027–2028.

For landlords, this means potential caps on rent increases in certain areas, alongside new tenant rights such as permissions for alterations and keeping pets, which could affect how properties are managed and the flexibility landlords have traditionally enjoyed.

Practical Implications Across Landlord Profiles

• Single-Unit Landlords: May face tighter rent increase limits in designated areas, reducing potential income growth. Preparing for tenant alteration requests and pet permissions will require reviewing tenancy agreements and maintenance plans.

• HMO Operators: With multiple tenants and shared facilities, HMOs might see increased operational complexity, especially if rent controls are imposed. Allowing pets and alterations could necessitate property upgrades or more frequent maintenance.

• Portfolio Landlords: Larger portfolios risk significant impact on profitability if multiple properties fall within rent control zones. Strategic review of portfolio composition and geographic spread is advisable.

• Accidental Landlords: Those with one or two properties not originally intended for letting should be particularly vigilant, as their smaller scale may limit financial resilience against reduced rent flexibility.

Key Deadlines and Compliance Milestones

• By 31 May 2027: Local authorities complete rent condition assessments.
• From 2027–2028: Potential introduction of designated rent control zones with rent increase limits.

Landlords should monitor announcements from local councils and the Scottish Government closely in the coming months.

Recommended Next Steps for Landlords

1. Attend Free Briefing Events: DJ Alexander Ltd is hosting complimentary sessions in Edinburgh and Aberdeen in late November 2025. These briefings will provide up-to-date legal, financial, and compliance advice tailored to the Act’s requirements.

2. Engage with Local Authority Communications: Proactively track rent condition assessments in your property locations to anticipate designation as rent control zones.

3. Review and Update Tenancy Agreements: Prepare for new tenant rights by incorporating clauses that address tenant alterations and pet ownership while ensuring compliance.

4. Financial Modelling and Viability Checks: Assess how potential rent caps could affect cash flow and profitability. Consider diversifying your portfolio or adjusting rent strategy accordingly.

5. Seek Professional Advice: Consult solicitors or property compliance specialists to clarify obligations and mitigate risks.

6. Plan Operational Changes: Schedule maintenance and property management workflows to accommodate increased tenant requests and regulatory requirements.

How Rentals & Sales Can Support You

Our team specialises in helping landlords navigate complex regulatory environments. We offer portfolio reviews to identify risk exposure, compliance audits to ensure your lettings meet new standards, and pricing strategy consultations to optimise rental income under emerging rent controls. Reach out to us to schedule a tailored session or to discuss how the Housing (Scotland) Act 2025 impacts your property business.

Compliance disclaimer: This article is for informational purposes only and does not constitute legal advice. Landlords should consult qualified professionals to address their individual circumstances.