Will rent controls affect landlords in Scotland? What the 2025 Act really means

If you own rental property in Scotland, you've probably seen the headlines about the Housing (Scotland) Act 2025 and wondered how worried you should actually be.

The honest answer is: not immediately - but this isn't something to file away and forget about either. The Act introduces a framework that will shape the Scottish rental market over the next several years, and there are specific dates, deadlines and changes that are worth understanding now rather than scrambling to catch up with later.

At Albany, we've been through the detail so you don't have to. Here's what's actually changing, when, and what it means for how you manage your property.

The Headline: Rent Controls Aren't Here Yet

This is the most important thing to understand, because the headlines have created more alarm than the current reality warrants.

From 1 April 2026, the rent control framework comes into force - but this means local authorities will begin assessing rental conditions in their areas, with their first reports due to Scottish Ministers by 31 May 2027. Rent control areas cannot be introduced until after those assessments are complete and reviewed.

Rent controls will not apply anywhere in Scotland until summer 2027 at the earliest - and even then, only in areas where the evidence supports it, and only where Scottish Ministers are satisfied the measure is necessary and proportionate.

So what does April 2026 actually change? From that date, local authorities and the Scottish Government can require landlords to disclose how much rent their tenants pay, as part of the data-gathering process underpinning the rent control legislation. That's the immediate practical change. Rent-setting itself is unaffected for now.

For the time being, you can still:

• Set rents at market value when starting a new tenancy
• Increase rent during a tenancy in line with current rules
• Manage your property as you always have

If Rent Controls Do Come to Your Area - What Would They Look Like?

This is worth understanding now, even though it's not yet in force.

In designated rent control areas, rent increases will be capped at CPI + 1%, with a maximum increase of 6%. Rent control areas would last for a maximum of five years and could be removed earlier if conditions change. Before any area is designated, Scottish Ministers must consult with the relevant local authority and groups representing landlords and tenants.

There are also exemptions worth knowing about. Build-to-rent and mid-market rental properties will be exempt from rent controls. If you own standard private residential tenancies, you'll need to follow what happens with the local authority assessments in your area closely.

What IS Changing in October 2026 - and It's Significant

This is the part of the Act that isn't getting enough attention, and where landlords genuinely need to prepare.

From 6 October 2026, penalties for wrongful termination orders will increase significantly. Currently, fines range from 0 to 6 months' rent. Under the new rules, this increases to between 3 and 36 months' rent for tenants who leave on or after that date.

A wrongful termination order can be issued if a tenant is found to have been misled into vacating a property based on an eviction ground that didn't actually apply. The message here is clear: if you're using any ground to end a tenancy, it needs to be legitimate, properly documented, and evidenced. The financial exposure from getting this wrong is now very real.

Also from October 2026, there will be changes to succession rules on the death of a tenant - the qualifying period for a partner, family member or carer to inherit a tenancy reduces from 12 months to 6 months. 

What Changes in April 2027

From 1 April 2027, tenants will have 30 days (up from 21) to challenge a rent increase by applying to a rent officer. Rent officers will also be capped at the landlord's proposed rent - they will no longer be able to set a rent higher than what the landlord has asked for, even if market value is higher. 

There's also a notable change to joint tenancies - one tenant will be able to end the tenancy on behalf of all tenants - reversing the current requirement for all tenants to agree. For landlords with joint tenancies, this changes the dynamics of how tenancies can end and is worth factoring into how you manage those arrangements.

Still Coming - Pets and Alterations

Tenants will be able to request to keep pets or alter and decorate their homes, with landlords having 30 days to respond or being deemed to have refused consent. Unreasonable conditions or refusals can be challenged before the First-tier Tribunal. A date for this coming into force hasn't been confirmed yet - further regulations are required - but it's the direction of travel and worth preparing for.

The Practical Summary for Landlords

This isn't a moment to panic. But it is a moment to get organised. The landlords who navigate this well will be the ones who:

• Know their eviction grounds inside out and have the documentation to back them up - given the new wrongful termination penalties, this is no longer optional
• Understand how their rents compare to the local market, so they're not caught off guard if rent control areas come into play in their area
• Keep a close eye on the data-gathering process from April 2026 - the local authority assessments will be the real signal of where things are heading in Edinburgh and across Scotland
• Stay across the April 2027 changes to rent challenge timelines and joint tenancy rules

The real risk here isn't the legislation itself. It's being underprepared when specific changes land - particularly the wrongful termination penalties in October 2026, which are already confirmed and coming.

At Albany, we keep a close eye on all of this so our landlords don't have to. If you want a clear view of how these changes affect your specific properties or portfolio, we're always happy to talk it through.

Get in touch.