Scotland’s New Housing Minister & Reforms

Scotland’s housing landscape is set for change over the next few years, with the new Housing (Scotland) Bill bringing fresh regulation, tenant protections and higher standards for the rental sector. While some landlords have voiced understandable concerns, there is also much to be encouraged about, particularly with the appointment of Mairi McAllan as Scotland’s new Housing Minister.

Early meetings between McAllan and landlord representatives suggest she is open, approachable, and keen to engage in dialogue. This creates an opportunity for the sector to work in partnership with government to ensure reforms are both fair and workable.

Key Reforms on the Horizon

  1. Rent controls with consultation built in

The Bill introduces a framework for rent control areas (RCAs), where rent increases may be capped at CPI + 1% (up to 6%). While this represents a shift, the positive news is that the government has already shown willingness to consider exemptions, such as for mid-market rent and build-to-rent properties. The fact that these exemptions are on the table demonstrates recognition that a one-size-fits-all approach would not work.

For landlords, this means a chance to contribute to shaping how the rules are applied locally, while tenants benefit from greater predictability in housing costs.

  1. Awaab’s Law

From March 2026, Awaab’s Law will apply in Scotland, requiring landlords to address health hazards such as damp and mould within clear, enforceable timeframes.

Although this adds responsibility, it also raises confidence in the rental sector. By ensuring that all homes meet safe and healthy standards, landlords who already maintain good-quality properties will stand out even more clearly. Over time, this should strengthen trust between landlords and tenants, helping reduce disputes and encourage longer, more stable tenancies.

  1. Homelessness Prevention

The introduction of an “ask and act” duty will require public bodies and social landlords to identify and support people at risk of homelessness before crisis point. While primarily a social housing measure, the private rented sector also stands to benefit. Better support for vulnerable tenants can help reduce arrears, prevent abandoned tenancies, and create more stability in communities.

  1. Stronger Tenant Rights

Proposals to give tenants more freedom to keep pets and decorate their homes reflect changing expectations. For landlords, this may seem like giving up some control, but it also creates opportunities:

  • Happier tenants who feel at home are more likely to stay long-term.
  • Fewer voids and reduced turnover mean greater stability of income.

Flexibility can ultimately improve the landlord–tenant relationship and boost the reputation of the sector.

  1. Property Factor and Tribunal Reforms

Adjustments to the Property Factors Register and greater use of the First-tier Tribunal for dispute resolution aim to simplify processes and make them fairer for everyone involved. By streamlining how disagreements are handled, landlords will have clearer rules to follow and tenants will benefit from quicker resolution, avoiding lengthy and costly court action.

A chance to reset the relationship

The new Housing Bill represents one of the most significant shifts in Scotland’s rental sector in recent years. While change always brings uncertainty, it also offers an opportunity to reset the relationship between government, landlords, and tenants.

Mairi McAllan’s early discussions with landlord bodies have been described as “positive and open.” Her willingness to listen and consider practical exemptions suggests a balanced approach is possible. If landlords continue to engage constructively, there is a real opportunity to shape a system that protects tenants while still encouraging investment in the sector.

Looking Forward

For landlords in Fife, Dundee and beyond, the coming reforms should not be viewed purely as restrictions, but as a chance to:

  • Differentiate quality homes in a market that will increasingly reward good standards.
  • Secure longer, more stable tenancies by supporting tenant wellbeing and housing affordability.
  • Engage in dialogue with government to ensure local needs are understood and reflected in regulation.

Scotland’s housing sector is evolving. With a proactive approach and collaboration, these changes can help create a rental market that works for everyone.