The Housing (Scotland) Bill 2025: Key Changes for Residential Tenancies

The forthcoming Housing (Scotland) Bill 2025 marks the most major reform of Scotland’s residential tenancy legislation since the introduction of Private Residential Tenancies (PRTs) in December 2017. While the Bill has not yet received Royal Assent and many of the finer details will be introduced later through Statutory Instruments, it is already clear that its impact will be far-reaching, albeit that impact will take place within an already familiar framework of PRTs. For the first time, the new legislation will extend to all let homes, including properties sub-let under agricultural or farm leases, and it will introduce a completely new testing regime for residential Energy Performance Certificates (EPC).

Broad scope and reach

The Bill represents a decisive shift towards a more regulated housing sector, with likely changes including increased rent controls, higher fines for non-compliance, caps on rent increases – even at the start of a new tenancy – and increased power for tenants to make alterations in properties and to keep pets. Its scope captures every form of residential letting arrangement, whether urban or rural, mainstream or ancillary to other arrangements. The inclusion of dwellings sub-let under farm leases is particularly significant, bringing into statutory focus an area that has historically operated with less direct oversight. Landlords of agricultural properties, who may not previously have considered the terms of the rest of the private domestic rental regime, will need to prepare to meet the same compliance obligations as conventional residential landlords once the Bill takes effect.

A new energy performance regime

One of the Bill’s headline features is its commitment to overhaul Scotland’s current system for energy performance in let properties. The existing EPC model is expected to be replaced with a new testing and certification regime, designed to reflect Scotland’s net-zero commitments and to drive improved energy efficiency in the housing stock. Although the detail has not been published, the changes are expected to involve more rigorous testing standards and potentially different measurement criteria for assessing a property’s energy performance. However, it is also anticipated that the new EPC model will be able to reflect more effectively the actual energy performance of houses than the current scheme, particularly for those using traditional building methods. This will have implications for both landlords and managing agents in planning and budgeting for property improvements, but those implications will cut both ways, with some landlords finding themselves better off under the new model and others not.

Practical implications for landlords

In the absence of final regulations, landlords can nonetheless begin to prepare, however flexibility in plans will have to be retained until the Bill is passed and key details are clarified in subsequent secondary legislation. As a minimum at this time, landlords should be:

• Reviewing tenancy arrangements: Those managing rural lets or farm sub-lets should identify any residential occupation arrangements that might fall within the Bill’s extended scope.
• Plan for compliance: With new energy testing rules on the horizon, property owners should consider energy efficiency upgrades ahead of time, both to plan for costs which will arise and to avoid undue disruption once the statutory standards are introduced.
• Monitor for any news on the as-yet-unpublished secondary legislation: Much of the practical framework – including compliance procedures, certification methods, and enforcement powers – will be set out through Statutory Instruments. Early engagement with professional advisers will be crucial once these begin to emerge.

Looking ahead

The Bill is currently progressing through the Scottish Parliament and has not yet received Royal Assent. Timetables for implementation remain uncertain, and key operational provisions are still to be defined. Nevertheless, the direction of travel is clear: a more tightly regulated, environmentally responsible, and comprehensive residential letting regime across Scotland.

For landlords, factors such as compliance, energy efficiency, and rural sub-letting arrangements are set to become increasingly prominent. Those who act now to understand and prepare for the Housing (Scotland) Bill 2025 will be best placed to adapt smoothly when the new law comes into force.

How we can help

At Anderson Strathern we are monitoring progress of the Bill at Holyrood and news of the needed secondary legislation. This will allow us to help our clients understand the implications of the new Bill and what changes will be required for them. At this time, all we can say with confidence is that change is coming and that change will be substantial.

For up-to-date information or to discuss possible implications for you, please contact Douglas Reid (Douglas.Reid@andersonstrathern.co.uk) or speak to your usual Anderson Strathern contact.