As we head into 2025, Scotland’s private rental sector is evolving quickly, bringing new challenges and exciting opportunities for letting agents, landlords, and property investors. With new regulations on rent controls, tenancy reforms, and Scotland’s own rental legislation in the works, staying on top of things is more important than ever.
So, let’s break down the key updates that could impact your business in 2025 — and what they mean for you.
Rent controls have been a hot topic in Scotland for a while now. The Cost of Living (Tenant Protection) (Scotland) Act 2022 introduced emergency rent caps and eviction bans, and these have been extended several times. However, the big question is: what happens next?
At the moment, rent increases are capped at 12% until April 1, 2025. After that, landlords will be able to adjust rents again, but only until further legislation kicks in. The Scottish Government is looking at making rent controls permanent, with a proposal to cap rent increases to the Consumer Price Index (CPI) inflation rate plus 1%, with a max increase of 6%. If you’re renting in areas like Edinburgh, Glasgow, or Aberdeen where demand is high, it’s important to stay updated on this — we could see stricter local rent controls in these areas soon.
In fact, the average rent in Scotland in January 2025 was £995 — that’s a 6.2% increase from the previous year. If you’re a letting agent in one of the higher-demand areas, these rent caps could play a big role in how you handle your portfolio.
While England has its Renters’ Rights Bill making waves, Scotland has been focusing on the Housing (Scotland) Bill. This bill is set to bring in major changes for tenants and landlords alike.
One of the biggest changes is stronger eviction protections. If the bill passes, it’ll become much harder to evict tenants without a valid reason. It’s also expected to make rent caps permanent, enforce longer notice periods for evictions, and potentially introduce new regulations around short-term lets, especially in high-demand areas.
This means more compliance requirements for letting agents, so it’s important to get ahead of these changes and make sure your tenancy agreements are solid and fully compliant.
Since 2018, letting agents have had to register with the Letting Agent Register and follow the Letting Agent Code of Practice. But as we move into 2025, there’s a growing focus on compliance, especially when it comes to property condition standards, handling deposits, resolving disputes, and being transparent about tenant fees.
It’s a good time to review your processes. Make sure you’re on top of client money protection rules, tenancy deposit schemes, and properly advertising properties. If your paperwork or procedures aren’t up to scratch, you could face fines or even risk being removed from the Scottish Letting Agent Register.
Energy efficiency is still a hot topic in Scotland’s rental market. Although the planned requirement for all rental properties to reach EPC Band C by 2025 was delayed, landlords should still prepare for stricter rules on energy performance in the future.
As mentioned earlier, in January 2025, the average rent in Scotland was £995, but with rising energy costs, tenants are now more likely to prioritise properties that are energy-efficient. According to reports, properties with poor EPC ratings are becoming harder to rent out, especially with more tenants opting for homes that help keep their energy bills lower.
It’s worth thinking ahead and investing in energy-saving improvements like insulation, double glazing, and energy-efficient heating systems. Plus, there may be government funding or incentives available to help with energy upgrades, so keeping an eye out could save landlords a lot of money in the long run.
With tenant protections increasing, more and more disputes are being referred to the First-Tier Tribunal for Scotland (Housing and Property Chamber). The tribunal deals with cases like deposit disputes, unlawful rent increases, and eviction challenges.
In 2025, we can expect to see more of these cases, especially as tenants have easier access to the tribunal process, which is free for them. To avoid getting caught up in a tribunal case, landlords should ensure that tenancy agreements are clear and that thorough records are kept. Letting agents should also be proactive in resolving disputes before they get to that point. The tribunal is becoming a more accessible option for tenants, so it’s likely to be used more often in the future.
With so many changes on the horizon, the best thing you can do is stay proactive. Whether you’re a letting agent, landlord, or property investor, it’s essential to keep on top of the Housing (Scotland) Bill and the latest regulations that could affect your rental strategy. Review your rent increase plans, get ready for tighter energy efficiency rules, ensure your processes are compliant, and make sure you’re prepared for potential disputes.
At Helpthemove, we’re here to help letting agents across Scotland stay ahead of the game. Get in touch today to find out how we can simplify your workload and improve efficiency. We’ll also be exhibiting at Propertymark’s Scottish National Conference, so come and see us to chat about how we can help you navigate these changes and streamline your lettings processes!
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