What Does the Housing (Scotland) Act 2025 Mean for Landlords?

Last reviewed: 27 October 2026Reading time: 9 minutes

Key Dates at a Glance

The Scottish Government is bringing the Act in gradually through commencement regulations. These are the dates confirmed so far for the private rented sector.

How Rent Control Areas Will Work

Since 1 April 2026, every council must assess rent conditions in its area and report to Scottish Ministers at least once every five years. The first report is due no later than 31 May 2027. Ministers and councils can also require landlords and tenants to provide information about rented properties and the rent charged, so that decisions are based on evidence.

Scottish Ministers can then designate a rent control area, but only if they are satisfied that restricting rent increases is necessary and proportionate. They must consult the council and representatives of landlords and tenants first. A designation lasts for a maximum of five years and must be kept under review.

Inside a rent control area, the rules for a Private Residential Tenancy are:

• rent increases are limited to CPI plus 1%, with a maximum of 6%
• the cap applies during a tenancy and between tenancies, so you cannot reset the rent to market level when a new tenant moves in
• rent can only be increased once every 12 months, even if the tenant changes during that time
• tenants can challenge an increase above the cap, or a second increase within 12 months, through a rent officer or the tribunal

The Act also lets ministers make regulations allowing the tribunal to order a penalty or compensation where a landlord breaks the cap. Further regulations will allow increases above the cap in limited cases. The Scottish Government has consulted on situations such as rents that have been well below market level, or where a landlord has invested in improving the property. These regulations must be in place before the first rent control areas are designated.

When the Cap Does Not Apply

The cap does not apply when the rent is set at the start of a new tenancy in a property that:

• is completely new to the private rented sector
• was bought by a landlord with vacant possession, where the new tenancy is the first since the purchase
• has not been let on a Private Residential Tenancy or assured tenancy in the previous 12 months

Some properties are exempt from the cap altogether, including Mid-Market Rent and some Build-to-Rent homes. This is intended to protect investment in new supply. Rent increases in exempt properties follow the standard rules that apply outside rent control areas.

For investors, the vacant possession exemption matters most. If you buy an empty flat in a future rent control area, you can set the first rent at market level. After that, increases follow the cap.

Advertising Rules in a Rent Control Area

If your property is in a rent control area, your adverts must include, for most tenancies:

• confirmation that the property is in a rent control area
• the proposed rent for the new tenancy
• the rent paid under the previous tenancy
• whether there was a rent increase in the previous 12 months
• if there was an increase, the date it took effect

Adverts for exempt properties must say that the property is exempt, so tenants can make informed decisions.

Wrongful Termination Orders and Succession

Wrongful termination orders. If a tenant believes they were misled into leaving a Private Residential Tenancy because the landlord relied on an eviction ground that did not apply, they can apply to the tribunal. Until 6 October 2026, the tribunal could award between 0 and 6 months' rent. For tenants who move out on or after 6 October 2026, the range is between 3 and 36 months' rent.

The Scottish Association of Landlords notes that these applications are rare, and in most cases the tribunal finds that the landlord did not mislead the tenant. The practical point is simple: only use an eviction ground you can evidence, such as a genuine intention to sell, and keep the paperwork.

Succession. When a tenant dies, a partner, family member or carer living with them can take over the tenancy if they meet a qualifying period. For deaths on or after 6 October 2026, the period falls from 12 months to 6 months.

Rent Increase Appeals and Joint Tenancies from April 2027

From 1 April 2027, two changes affect day-to-day management.

Rent increase challenges. Tenants will have 30 days rather than 21 to refer a rent increase on a Private Residential Tenancy to a rent officer. Rent officers, and the tribunal on appeal, will no longer be able to set the rent higher than the figure you proposed. They will still assess market rent, but if it is above your figure, your figure stands. Until now there was a risk that a referral could push the rent above what you asked for.

Joint tenancies. One joint tenant will be able to end a joint Private Residential Tenancy for all the tenants. At present, all joint tenants must give notice. Detailed guidance is expected closer to the date.

Measures Without a Start Date

Several parts of the Act do not yet have a commencement date:

• rules preventing landlords from unreasonably refusing permission for a tenant to keep a pet or to personalise the property
• a ban on rent increases in the first 12 months of a Private Residential Tenancy
• a power for the government to convert older assured and short assured tenancies into Private Residential Tenancies

What Landlords Should Do Now

1. Review your rents. Until a rent control area is designated, you can still set market rents for new tenancies and raise rents once every 12 months under the normal rules. Rents well below market could be harder to correct later.
2. Keep good records. Councils and ministers can now ask for rent information. Keep a clear history of the rent, increase notices and the dates they took effect for every property.
3. Watch your council. Each council must report by 31 May 2027. Check what your council's assessment says about the areas where you let.
4. Check eviction grounds carefully. With wrongful termination awards of up to 36 months' rent, take advice before serving notice.
5. Factor the cap into new purchases. In an area that may be designated, assume that future rent growth could be limited to CPI plus 1%.