Agents have been advised by their trade body to prepare for a radical shake-up of the Scottish private rental sector.
The Housing (Scotland) Act 2025, which has just won Royal Asset, has amongst its key provisions:
- Local authorities must carry out regular assessments of local rents and their rate of change;
- The creation of Rent Control Areas (RCAs) where stricter rent regulation applies;
- Limits on rent increase in RCAs, typically tied to inflation (CPI) + 1% and capped at 6% maximum per year;
- Controls on rent increases between tenancies;
- Stronger likelihood of eviction delays because of apparent tenant hardship or bad weather; and
- Changes to how damages for unlawful eviction are calculated.
Meanwhile tenants will get a raft o new rights, including the right to keep pets in all but exceptional circumstances, the ability to decorate or even make alterations to properties, and in a joint tenancy, one tenant can now end their part of the tenancy without everyone else having to agree.
The legislation also introduces powers to implement Awaab’s Law in Scotland, requiring landlords to respond promptly to hazards like damp and mould.
Timothy Douglas, head of policy and campaigns at Propertymark, says: “Royal Assent for the Housing (Scotland) Act marks another significant milestone for the private rented sector. Local authorities across Scotland will now start to prepare and submit reports to the Scottish Government on the rent conditions in their localities by the end of May 2027, which could lead to the introduction of Rent Control Areas.
“Letting agents need to work with landlords to prepare and comply with requests for information from councils as well as understand how the new rights for tenants in terms of pets and making changes to rented property will impact how they manage tenancies.
“Further clarity is still needed from the Scottish government on exemptions to Rent Control Areas and guidance to support the changes. Propertymark stands ready to work with the Scottish Government to ensure the reforms are implemented in a way that is evidence based and fair to landlords, tenants and letting agents.”
