Scotland is not completely immune from the UK Government’s Renters’ Rights Act (RRA) which came into force on 1 May 2026.
The Act includes provisions to make it illegal for landlords and letting agents to apply a blanket ban on renting to people who receive benefits or families with children. Whilst other parts of the RRA only apply in England, laws on renting to those with children or on benefits will also apply in Scotland and Wales and came into force in Scotland on 1 May.
Scotland’s ‘equivalent’ of the RRA started on 1 December 2017 under the Private Housing (Tenancies) (Scotland) Act 2016. Scotland’s private residential tenancy was designed to give tenants security, stability and predictability, while providing appropriate safeguards for landlords, lenders and investors. Key features included open-ended tenancies, protection against excessive rent increases and 18 specified grounds on which a landlord could repossess a property. These included a landlord’s intention to sell or move into the property.
According to my research at the beginning of 2020, appropriate pricing, high-quality management and more awareness of associated costs had been the positives. It was important for landlords to be aware of tenant intentions to ensure longer letting periods, minimal voids and less cost for both landlords and tenants. The main challenges facing the market at that time were constrained supply, as a consequence of the additional dwelling surcharge on stamp taxes, reduction on mortgage interest tax relief and tougher lending criteria.
In the period from Q4 2017 to Q1 2020, the average monthly rental asking price across Scotland increased by 10%. Rental growth was supported by strong demand from professionals, particularly for one and two bedroom properties. There was also demand from families for appropriately priced larger properties in good condition.
The new rental system in Scotland had been in place for just over two years when Covid-19 sparked a number of changes. In light of the pandemic the Scottish Government introduced measures to protect tenants, including eviction bans, rent freezes, and later, capped rent increases.
From 1 April 2025, Scotland’s rental market returned to a free-market system as rent caps ended, allowing landlords to raise rents to open-market levels. During this five-year period of Covid-19-related measures from Q1 2020 to Q1 2025, the average Scottish monthly rent increased by 45%, according to Citylets.
Looking ahead, the Housing (Scotland) Act 2025 will make changes to Scotland’s private residential tenancy over the next year. These include long-term rent controls, the frequency of rent increases, duties on tackling damp and mould, and greater rights for tenants to personalise their home. However, build-to-rent, mid-market rent and purpose-built student accommodation properties will be excluded from rent controls.
Over eight years since Scotland’s rental system changed (and a year since government restrictions were lifted), the market has returned to seasonality, with a rebalancing between supply and demand. The average rent fell slightly by -0.4% from Q1 2025 to Q1 2026. This was the first annual drop since Q4 2017, when the tenancy system originally changed. Meanwhile, our agents are reporting a scenario that is somewhat similar to how it was before the advent of Covid-19: correct pricing being key to securing tenancies and minimising voids.
As the English rental system moves into a new era, the main lesson from Scotland is the importance of understanding the motivation of both landlord and prospective tenant. In simple terms, tenants renting properties where they are planning a long-term future might not be the best option if the landlord intends to move to the property or sell it in the short term.
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