Letting residential property – what is changing in Scotland?
Landlords in Scotland are facing some important changes this year, as new legislation aimed at strengthening tenant rights and improving standards across the private rented sector begin to take effect.
Damp and mould
From 6 October 2026, landlords will be subject to new responsibilities around the investigation and repair of damp and mould issues.
While Scottish landlords have been required for some time to deal with damp and mould to meet the Repairing and Tolerable Standards, the new regulations introduce clear timescales for action to be taken.
The new rules fall under The Investigation and Commencement of Repair (Scotland) Regulations 2026, which are the first set of regulations implementing Awaab’s Law in Scotland.
If the landlord is notified by the tenant, or otherwise becomes aware, that a property is affected by damp or mould, the landlord must ensure that an investigation is carried out by a competent person to determine whether the property is ‘substantially free from damp and mould’ and if any work is required to alleviate the problem.
The investigation must be completed within 10 working days, beginning the day after the landlord is notified that the property may be affected by damp or mould. The landlord must also give the tenant a written summary of the results of the investigation within a period of three working days from when the investigation is completed.
If it has been determined that relevant safety work is required in relation to damp in the property, the landlord must ensure that the work is commenced within the period of five working days beginning from the day after the investigation is completed.
There are provisions if these timescales cannot be met, and landlords must provide the tenant with a written explanation outlining the reasons for the delay and the expected timing of when the work will be carried out.
Further detailed guidance from the Scottish Government is expected to be available in late summer 2026. These tight timescales for action are a positive step towards improving tenants’ health. However, the causes of damp and mould can be complex and often occur as a result of several issues within a property.
At Strutt & Parker our property management experience and the knowledge of our in-house building team can provide a proportionate response to the elimination of damp and mould.
Rent controls
The first phase of the Housing (Scotland) Act 2025 came into force on 1 April 2026. This stage focuses on local authorities gathering evidence to inform decision-making on whether rent control areas should be introduced in places where rents are rising steeply.
Rent controls can be implemented from late 2027, however, local authorities are now required to assess rent conditions in their area and submit final reports to Scottish Government by 31 May 2027.
Local authorities have new powers to request information about rents from both landlords and tenants. Failure of landlords to supply rent data within 28 days of such a request, or the provision of false information, can result in a fine of up to £1,000.
In areas where rent controls are to be introduced, annual rent increases will be capped at the Consumer Price Index (CPI) plus 1%, up to a maximum increase of 6%. These rent control areas will be subject to review and follow up rent assessments are required at least every five years.
Strutt & Parker manage a range of residential tenancy types throughout Scotland and has a vast number of comparables to establish local market value rents. We understand many landlords are currently providing below market value rents to their tenants and have been happy to do so and that many landlords are now unsure what action they should take. We are happy to advise landlords on the approaches they might wish to take and have helped clients form a suitable strategy in relation to rents in their portfolios.
If you would like to discuss the implications of these changes on your rural property portfolio and for advice on how best to prepare, please contact Gillian Ferguson.