Scotland’s private rented sector in 2026 and 2027: Everything you need to know

Scotland’s private rented sector is undergoing one of its most significant periods of regulatory reform in recent years, with major changes taking effect throughout 2026 and continuing into 2027. 

The majority of these reforms stem from the Housing (Scotland) Act 2025, which introduces a range of measures affecting rent controls, housing standards, tenant rights, and landlord responsibilities. 

The reforms are part of the Scottish Government’s wider plans to improve housing standards, increase tenant security and create greater consistency across the private rented sector. 

Rent control framework now in force 

From 1 April 2026, Scotland’s new rent control framework officially came into force. 

However, it is important to note that no Rent Control Areas have yet been designated. Instead, the framework establishes the process through which rent controls may be introduced in specific areas in future.  

Under the new rules, local authorities are now required to assess rent conditions within their areas at least once every five years and submit reports to Scottish Ministers. The first reports must be provided by 31 May 2027. 

These assessments will help determine whether specific locations should become designated Rent Control Areas. Where an area is designated, rent increases may become subject to statutory limits. 

The cap limits annual rent increases to CPI plus one percent, subject to a maximum cap of six percent. 

Importantly, the cap is intended to apply both during a tenancy and between tenancies in some circumstances, preventing landlords from significantly increasing rents when properties are re-let within a short timeframe. 

The legislation also gives local authorities and Scottish Ministers powers to request information from landlords relating to tenancies and rental properties.  

End of “No DSS” and family discrimination 

Since 1 May 2026, it has been unlawful for landlords and letting agents in Scotland to refuse prospective tenants solely because they receive benefits or have children. 

The change effectively ends practices commonly referred to as “No DSS” policies and is intended to improve access to housing for families and lower-income households. Tenant organisations have welcomed the measure as a significant step towards creating a more inclusive private rented sector. 

Read our full article, “Scotland’s rental discrimination rules: What landlords and tenants need to know” 

Awaab’s law  

The Scottish Government is introducing Awaab’s Law in Scotland through the Investigation and Commencement of Repair (Scotland) Regulations 2026, which come into force on 6 October 2026. 

Named after two-year-old Awaab Ishak, who died in 2020 following prolonged exposure to mould in his family’s home in England, the reforms are intended to strengthen protections for tenants experiencing damp and mould within rented properties. 

The regulations introduce clear statutory duties requiring landlords to investigate and address damp and mould issues within fixed timescales. 

The regulations will amend the repairing standard to make clear that properties must be “substantially free from damp and mould”. 

Read our full article: “Awaab’s Law to come to Scotland: What does this mean for landlords?” 

Increased compensation for wrongful termination 

From 6 October 2026, compensation awards for wrongful termination of tenancies will increase significantly. 

Where a landlord misleads either a tenant or the Tribunal in order to recover possession of a property, the Tribunal will be able to award compensation ranging from three to 36 times the monthly rent. 

Where the monthly rent is particularly low, a minimum figure of £840 will apply instead. 

The reforms are designed to strengthen tenant protections and discourage misuse of eviction grounds. 

Succession rights strengthened 

The Housing (Scotland) Act 2025 also strengthens succession rights for both private residential tenancies and Scottish secure tenancies. 

From October 2026, the qualifying period required before succession rights apply will reduce from 12 months to six months. 

This change is intended to improve housing stability for qualifying occupiers living in rented accommodation. 

Further reforms coming in 2027 

Changes to rent adjudication 

From 1 April 2027, tenants will have up to 30 days to challenge a proposed rent increase through a Rent Officer or the First-tier Tribunal for Scotland (Housing and Property Chamber). 

Importantly, where a rent increase is referred for review, the Rent Officer or Tribunal will no longer be permitted to set a rent higher than the amount originally proposed by the landlord. 

The reforms are intended to remove concerns that tenants could face larger rent increases simply for exercising their right to challenge a proposed increase. 

New rules for joint tenancies 

Also from 1 April 2027, a new process will be introduced allowing a single joint tenant to bring a private residential tenancy to an end without requiring the agreement of all other joint tenants. 

A tenant wishing to leave must give notice to both the landlord and the remaining joint tenants. This change is intended to offer greater flexibility when tenants experience relationship breakdowns, family changes or other major life events. 

First rent control area assessments due 

By 31 May 2027, all Scottish local authorities must submit their first rent condition assessment reports to Scottish Ministers. 

These assessments will play a central role in determining whether specific areas are designated as rent control areas under Scotland’s new rent control framework. 

They are expected to provide the first clear indication of how widely rent controls may be applied across Scotland in practice. 

Other reforms still to come 

While many provisions of the Housing (Scotland) Act 2025 are now scheduled, some measures are still awaiting commencement dates and supporting regulations. 

These include proposals affecting tenants’ rights to request permission to keep pets and make certain changes to their homes. Further details are expected from the Scottish Government in due course.  

What the changes mean for the sector 

For tenants, the reforms represent a significant strengthening of rights and protections. Measures addressing housing standards, discrimination, rent affordability and wrongful eviction are intended to improve security and accessibility within the private rented sector. 

For landlords, the changes bring new compliance requirements and increased regulatory oversight. While many landlords already operate to high standards, the evolving framework will require careful attention to future policy developments, particularly regarding rent control area designations and property condition obligations. 

For investors, the coming years will be crucial in understanding how Scotland’s new rent control framework affects housing supply, rental growth and investment appetite across different regions. 

As the reforms continue to roll out, tenants, landlords, letting agents and investors alike will need to stay informed to navigate Scotland’s changing private rented sector.