Preparing for Scotland’s Rental Market Overhaul: What Landlords Need to Know and Do Now

A Landmark Reform for Scottish Landlords

The Housing (Scotland) Act 2025, set to receive Royal Assent in November 2025, marks a seismic shift in Scotland's private rental sector. It introduces rent controls, strengthens tenant rights, and imposes new responsibilities on landlords and local authorities alike.

For private landlords—whether managing a single flat in Edinburgh or a portfolio of HMOs across Glasgow—understanding and preparing for these reforms is critical. The Act's provisions will roll out with key deadlines, notably a local authority reporting requirement by May 2027.

What the Rent Controls Mean

Local authorities must regularly assess and report on rent levels and changes, creating Rent Control Areas (RCAs) where rent increases are capped at CPI + 1%, with a maximum of 6% per year. Importantly, rent hikes between tenancies in these zones will face new restrictions.

Practical implications:

• Landlords in RCAs will need to plan rental income around these caps, which could impact profitability.
• Rent-setting strategies must be reviewed, especially for portfolio landlords with properties in multiple local authority areas.
• Single-unit landlords should monitor local authority announcements closely to know if their property falls within an RCA.

New Tenant Rights and Operational Adjustments

Tenants gain rights to keep pets (except in exceptional cases) and to make alterations or decorations without landlord consent. Additionally, tenants can now withdraw individually from joint tenancies, a change that will affect tenancy management and deposit handling.

Eviction processes also face delays where tenants cite hardship or weather-related issues, and Awaab’s Law enforcement means landlords must remediate hazards like damp and mould promptly.

Action points:

• Review and update tenancy agreements to reflect tenant rights regarding pets and alterations.
• Train property managers and letting agents on the new eviction protocols and how to handle individual withdrawal requests from joint tenancies.
• Enhance maintenance workflows to ensure rapid response to health hazards to avoid legal penalties.

Compliance and Reporting: A New Administrative Burden

The Act requires landlords to begin engaging with letting agents and local authorities to prepare for data collection on rent levels and tenancy details. This data feeds into local authority reports due in May 2027, influencing RCA designations and enforcement.

Recommendations:

• Establish a systematic process for capturing and sharing rental and tenancy data.
• Coordinate with letting agents to ensure accurate and timely reporting.
• Keep abreast of Scottish Government guidance for clarifications on RCA exemptions and enforcement mechanisms.

Tailoring Strategies by Landlord Profile

• Single-unit landlords: Focus on tenancy agreement updates and monitoring local authority RCA announcements.
• HMO landlords: Pay particular attention to eviction process changes and tenant rights, as joint tenancy dynamics are common.
• Portfolio landlords: Develop a compliance roadmap covering multiple local authorities, rent control caps, and coordinated reporting.
• Accidental landlords: Seek professional advice to understand obligations and mitigate risks.

Next Steps for Landlords

1. Audit current tenancy agreements and plan updates to incorporate new tenant rights.
2. Engage with letting agents to establish data collection workflows for rent and tenancy details.
3. Train staff on managing rent controls and the revised eviction processes.
4. Review property maintenance protocols to ensure compliance with Awaab’s Law.
5. Communicate proactively with tenants about upcoming changes to manage expectations.

How Rentals & Sales Can Help

Navigating the complexities of the Housing (Scotland) Act 2025 requires expert guidance. Rentals & Sales offers tailored portfolio reviews, compliance audits, and pricing strategy consultations to ensure landlords meet new obligations while optimising rental income.

Our team can support you in updating tenancy agreements, training letting staff, and establishing reporting systems ahead of the May 2027 deadlines.

Contact us today to safeguard your rental business in this new era.

Compliance Disclaimer: This article is for informational purposes and does not constitute legal advice. Landlords should consult qualified professionals to ensure full compliance with the Housing (Scotland) Act 2025 and related regulations.