Scottish landlords warned over new rules and fines of up to 36 months’ rent

Landlords and letting agents in Scotland are being urged to prepare, as tenants can claim up to 36 months’ rent if their tenancy is wrongfully terminated.

New housing rules coming into force on 6 October will significantly increase compensation available to tenants through the First-tier Tribunal, from three to 36 months’ rent.

The changes will also halve the qualifying period for inheriting a private residential tenancy after a tenant’s death, from 12 months to six.

Penalties for wrongful termination increase

Timothy Douglas warns landlords and letting agents could face hefty fines if they get the new eviction rules wrong.

He told Property118: “The succession rights changes are aimed at supporting grieving families and people with long-term careers. Although tenancy successions are relatively rare, letting agents and landlords must understand the increased flexibility being introduced by the Scottish government should such a situation arise in a tenancy they manage.

“Tenants can apply to the First-tier Tribunal (FTT) for a ‘Wrongful Termination Order’ if they believe their landlord misled them into leaving a Private Residential Tenancy agreement by relying on an eviction ground that did not apply.”

He added: “If the FTT is satisfied that the landlord used an invalid ground, it must fine the landlord. For tenants who leave a property on or after 6 October 2026, the maximum penalties will increase significantly. The current fine range of between 0 and 6 months’ rent will change to between 3 and 36 months’ rent.”

“For landlords and agents, possession procedures must be followed carefully, with eviction grounds genuine and properly evidenced. As penalties for wrongful termination increase, robust processes and compliance will be essential. Propertymark continue to engage with the Scottish government to support clear and workable implementation of these reforms.”

Awaab’s law coming into effect

The changes come as Awaab’s Law also comes into force in Scotland on 6 October, requiring landlords to address damp and mould within strict timeframes.

John Blackwood, chief executive of the Scottish Association of Landlords, welcomes Awaab’s law coming into effect.

He told Property118: “What happened to Awaab Ishak was tragic and it is right that we in the private rented sector ensure it never happens again.

“SAL fully supported Awaab’s Law throughout the process and we are happy to welcome it coming into effect.

“Scottish Ministers must now use this positive example as inspiration to work closely with the sector to address the challenges we face so that the private renting sector  in Scotland works for all.”