Quick answer
Two more parts of the Housing (Scotland) Act 2025 came into force on 6 October 2026. Tenants who are wrongfully evicted can now be awarded between three and 36 times the monthly rent, up from a maximum of six months, and the qualifying period for someone to take over a tenancy when the tenant dies falls from 12 months to six. Rent controls are also on the way: councils must report on local rents by 31 May 2027, and any area that is then designated would see rent rises capped at CPI plus 1%, up to 6%. Newly built homes and some vacant purchases are exempt from the cap. Prices are still rising: the average Scottish home was worth £196,000 in July, up 2.3% on a year earlier.
What changed on 6 October
The changes come from The Housing (Scotland) Act 2025 (Commencement No. 3) Regulations 2026, which brought two sections into force on 6 October 2026:
- Wrongful termination (section 34): where a private residential tenancy is ended by an eviction order, or after a tenant leaves following a notice to leave, on or after 6 October, a wrongful termination award can now be between three and 36 times the monthly rent (or £840, if that is higher than a month's rent). The previous limit was six months' rent, with no minimum.
- Succession (section 48): where a tenant dies on or after 6 October, the period a family member or carer must have lived there to take over the tenancy falls from 12 months to six.
More changes follow on 1 April 2027, including a longer window for tenants to challenge rent increases, from 21 to 30 days, according to the Scottish Association of Landlords.
Rent controls: the timetable and the exemptions
The rent control framework has applied since 1 April 2026, but no area has yet been designated. The Scottish Government's rent controls page sets out how it will work:
- Councils must assess rents in their area and report by 31 May 2027.
- Ministers can then designate rent control areas, after consulting the council and landlord and tenant representatives.
- In a designated area, rent increases are limited to CPI plus 1%, up to a maximum of 6%, once every 12 months.
- Newly built homes entering the private rented sector are exempt, as are properties bought with vacant possession where the new tenancy is the first since purchase, and properties with no tenancy in the previous 12 months. Mid-market rent and some build-to-rent homes are also exempt.
For investors who buy, refurbish and let, those exemptions matter. A home bought empty and let after a refurbishment, or a new build let for the first time, can be priced at the market rent from the start.
House prices in Scotland are still rising
The latest Registers of Scotland figures, published on 16 September 2026, put the average price in Scotland at £196,000 in July, up 2.3% on a year earlier. Prices rose in 25 of Scotland's 32 council areas. South Ayrshire saw the biggest rise, up 8.5% to £172,000, while the City of Aberdeen saw the biggest fall, down 8.7% to £131,000. Semi-detached homes were up 4.0% and terraced homes 3.8%, but flats only 0.5%.
That compares with UK annual growth of 1.4% in the same release, and a flat picture in the UK-wide indices covered in our house prices report. Rental supply is also tight: Zoopla's September report found the number of homes for rent fell in Scotland too, as reported by The Negotiator.
What it means if you are buying in Scotland
- Check the lender covers Scotland. Scottish property law is different, and not every lender lends there. Our page on bridging loans in Scotland lists lenders on our panel that do, including Scotlend.
- Vacant purchases and refurbishment. A property bought empty and let after works falls outside a future rent cap on its first tenancy. Light refurbishment finance can fund the purchase and the works together.
- Plan the exit. Most bridges are repaid by a sale or a buy-to-let mortgage. Lenders will test the rent against the mortgage, so check the figures early. See refinancing a bridge onto a mortgage.
- Buying through a company. Many investors buy in a limited company. Our guide to limited company and SPV bridging covers what lenders ask for.
Auction purchases are common in Scotland too, and auction finance works the same way: agree terms before you bid. If you are moving home and need to buy before you sell, see chain break bridging. Our guide to how long a bridging loan takes sets out the timetable, and Instant Quotes shows which lenders on our panel fit your purchase.
Common questions
What changed for Scottish landlords on 6 October 2026?
Wrongful termination awards can now be three to 36 times the monthly rent, up from a maximum of six months, and the succession qualifying period fell from 12 months to six.
Are there rent controls in Scotland now?
The framework is in place, but no rent control area has been designated. Councils must report on local rents by 31 May 2027 before any area can be designated.
Which properties are exempt from a Scottish rent cap?
Newly built homes entering the private rented sector, properties bought with vacant possession on their first tenancy after purchase, properties with no tenancy in the previous 12 months, and mid-market rent and some build-to-rent homes.
Can I get a bridging loan on a property in Scotland?
Yes, from lenders that lend on Scottish property. Fewer lenders cover Scotland than England, so it helps to check which ones fit early.
This article reports news and published figures as at 12 October 2026. It is for general information only and is not legal, tax or financial advice. Bridge & Build Finance is a commercial finance brokerage service, not a lender. Finance is subject to status, lender criteria, valuation, underwriting and approval.
