Housing (Scotland) Act 2025: What Borders Landlords Need to Know

The Housing (Scotland) Act 2025 is the biggest piece of private rental reform Scotland has passed in a generation. It received Royal Assent in November 2025 and its rent control framework came into force on 1 April 2026. A further tranche of changes lands on 6 October 2026, with more in April 2027. This is a plain-English summary of what's actually changed, what's coming, and what Borders landlords should do now.

This article is dated April 2026 and will be reviewed every three months. It is information, not legal advice — if you're uncertain about how a specific provision applies to you, consult a Scottish solicitor or check the Scottish Government guidance.

Summary — key dates

• November 2025: Royal Assent.
• 1 April 2026: rent control framework live; local authority data collection powers begin.
• 6 October 2026: wrongful termination penalties increase; tenancy succession qualifying period reduces.
• April 2027: tenants get 30 days to challenge rent increases; rent officers capped at proposed rent; joint-tenancy changes.
• 31 May 2027: deadline for local authorities to complete first rent condition assessments.
• Mid-to-late 2027: earliest realistic date any rent control area could be designated.

What actually changed on 1 April 2026

The rent control framework

The Act creates a framework rather than immediately imposing rent caps. Local authorities may designate "rent control areas" if rent condition assessments show local rents are inflating fast enough to warrant intervention. When an area is designated:

• The cap is CPI + 1%, with an absolute ceiling of 6% — whichever is lower.
• One increase per property per year (unchanged from existing law).
• Build-to-Rent and Mid-Market Rent properties are exempt under the Private Housing Rent Control (Exempt Property) (Scotland) Regulations 2026.

The practical effect on 1 April 2026 is limited: no rent control area has been designated. Local authorities have until 31 May 2027 to complete the first rent condition assessments that inform designation, so mid-to-late 2027 is the earliest realistic date any area would become a rent control area.

Data collection powers

From 1 April 2026, local authorities can require landlords and agents to provide rent data for properties in their area. This is the foundation of the rent condition assessments. In practice: Scottish Borders Council can now ask you what you charge, and you're obliged to tell them.

What's coming on 6 October 2026

• Wrongful termination order penalties rise from 0–6 months' rent to 3–36 months' rent. If a tribunal finds you evicted a tenant on a ground that turned out to be false (e.g. you said you were selling, then didn't), the minimum penalty becomes 3 months' rent and the ceiling becomes 3 years.
• Tenancy succession qualifying period drops from 12 months to 6 months. A partner, family member, or carer who has lived in the property for 6 months can now succeed to the tenancy on the tenant's death.

The first change is the one that matters most for landlords. If you use a Ground 1 (landlord needs to sell) or Ground 4 (landlord moving back in) eviction, keep meticulous evidence: the tribunal now has three times the upside to award against a landlord who can't back it up.

What's coming in April 2027

• Tenants get 30 days to challenge a rent increase (was 21).
• Rent officer decisions cap at the landlord-proposed rent — meaning the rent officer cannot raise the rent above what the landlord asked for, even if they find the market supports more.
• One joint tenant can end the tenancy for all joint tenants — a clarification that already applied in practice but is now explicit in statute.

Will the Borders be a rent control area?

Honest answer: the assessments haven't been done yet, and we don't know. But based on the current rent inflation picture, the Borders is far less likely to be designated than Edinburgh or central Glasgow. Borders rents have been rising — particularly in Peebles, Melrose, and Galashiels near the railway — but the rate of increase sits well below the levels that triggered rent controls elsewhere in Europe, and nowhere near Edinburgh's post-2022 inflation.

The exception worth watching: Hawick and Selkirk during the Center Parcs construction phase. If rents there move sharply in 2026–2028, the local authority could designate those specific areas. This is not a prediction — just the scenario to be aware of.

What to do now

• Confirm you're on the Scottish Landlord Register with Scottish Borders Council. If not, register immediately — it's a legal requirement independent of the Act.
• Review your tenancy agreements — are they valid Private Residential Tenancy agreements? If you're still using Short Assured or a template from before December 2017, replace it.
• Document any property improvements you make between now and 2027. If a rent control area is later designated, improvements are one of the narrow grounds for above-cap increases.
• Keep evidence trails for any Ground 1 or Ground 4 eviction. With the October 2026 penalty changes, the downside has tripled.
• Model your business at CPI + 1%. Even if your area isn't designated, this is now the regulatory anchor. If your rental yield only works with 5%+ annual increases, the arithmetic has changed.
• Respond to local authority data requests. Refusing isn't a sustainable position and the data is arriving regardless of whether you participate.

Further reading

Tenants' rights in Scotland covers the underlying tenancy framework. Borders rent benchmarks 2026 puts the inflation picture in context. And listing on Rent in the Borders keeps your portal costs flat — a small but real help as other costs tighten.