The Housing (Scotland) Act 2025 – Key Impacts for Landlords

27 Nov 2025

By Scott Runciman, Associate, Debt Recovery, Gilson Gray 

The Housing (Scotland) Act 2025 received Royal Assent on 6 November 2025 and has now become an enactment of the Scottish Parliament. The Act, at its core, provides a framework for further legal provision which will require supplementary regulatory overview before coming into force.

On the face of it, the Act attempts to strike a balance between the facilitation of enhanced legal rights for tenants (including greater security and autonomy within the rented property sector), while allowing landlords to keep control over tenancies under increasing obligation and regulation.

Here are some of the key features of the Act which landlords should be aware of:

Rent Regulation & Control

• Scottish Ministers may designate Rent Control Areas (RCAs) within Scotland where stricter rent controls will apply to properties within.
• In an RCA, caps on rent increases both during a tenancy and between tenancies can be applied (provided a property is not exempt).
• The cap on rent increases will be CPI + 1%, up to a maximum increase of 6%.
• Rent increases cannot happen in the first 12 months of a new private tenancy (in most cases).

Evictions and Unlawful Eviction Remedies

• The First‑tier Tribunal for Scotland are to consider whether there should be a delay in carrying out an eviction where hardship or homelessness is a possibility.
• The damages calculation for unlawful eviction will increase to up to 36 times monthly rent.
• The Tribunal must notify local authorities or the Police about unlawful eviction findings.

Tenant Rights

• Both private and social tenants can request permission to keep a pet, which landlords must not unreasonably refuse.
• Tenants will have the right to make minor changes and decorations to their rented properties with the landlord’s consent, which cannot be unreasonably refused.
• Tenants will be able to make very minor changes to their rented property, without the landlord’s consent.
• A single joint tenant will be able to end their part of a joint tenancy without needing unanimous agreement from all joint tenants.
• Unclaimed tenancy deposits in approved schemes can be transferred to a fund used to support private tenants, if they are not claimed after a certain period.
• Scottish Ministers can convert older “Assured Tenancies” into the newer “Private Residential Tenancies”

Damp and Mould

• There will be stricter obligations on landlords in dealing with damp and mould within a rental property, requiring quicker response and creating liability for poor conditions.

Summary

With the introduction of RCA’s Landlords may lose flexibility to raise rents aggressively in pressured markets. For tenants, the reform brings about predictability and protection.

Landlords will face tighter regulation around rents, evictions, personalisation of homes, and property conditions. Tenants will be given more stability and rights with what goes on in their homes.

For landlords, due process in connection with the process of eviction is more important than ever given how severe the consequences will be for creating an unlawful eviction situation.

For landlords who have not re-claimed a tenancy deposit sitting in a Scheme post termination of a tenancy, they would be wise to consider doing so lest their deposit is transferred to the private tenants support funds in the future.

Landlords should review these provisions carefully as there may be a need to update tenancy agreements and keep records of rent data. Landlords would also be wise to take heed and make sure to respond to property alteration requests or damp and mould complaints diligently and timeously.

Final Thoughts

The Act signals a clear shift in the rental housing market in Scotland being increasingly treated as long-term housing solutions for tenants rather than short-term investments. Both landlords and tenants should prepare for the coming changes ahead.

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