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Scottish Landlords Face Increased Fines for Wrongful Tenancy Termination

New housing rules in Scotland, effective 6 October 2026, will significantly increase the compensation tenants can claim for wrongful tenancy termination, from a maximum of three months' rent to 36 months' rent.

  • From 6 October 2026, tenants in Scotland can claim up to 36 months' rent if their tenancy is wrongfully terminated.
  • The qualifying period for inheriting a private residential tenancy after a tenant's death will be halved from 12 months to six.
  • Awaab’s Law also comes into force on 6 October, requiring landlords to address damp and mould within specific timeframes.

Landlords and letting agents in Scotland are being advised to prepare for new housing rules coming into force on 6 October 2026. These changes will substantially increase the compensation available to tenants through the First-tier Tribunal (FTT) for wrongful tenancy termination.

Currently, the maximum fine for landlords found to have used an invalid eviction ground is six months' rent. Under the new rules, this range will change to between three and 36 months' rent for tenants who leave a property on or after 6 October 2026.

Timothy Douglas warned that landlords and letting agents could face significant penalties if they do not correctly follow the new eviction rules. He stated that robust processes and compliance will be essential as penalties for wrongful termination increase.

Additionally, the qualifying period for inheriting a private residential tenancy after a tenant's death will be reduced from 12 months to six. These succession rights changes are intended to support grieving families and individuals with long-term careers.

The new housing rules coincide with the implementation of Awaab’s Law in Scotland on 6 October, which mandates landlords to address issues of damp and mould within strict timeframes. John Blackwood, chief executive of the Scottish Association of Landlords, welcomed Awaab's Law, stating that the private rented sector must ensure such tragedies do not reoccur.

Why this matters: The changes introduce significantly higher financial penalties for landlords who wrongfully terminate tenancies, aiming to provide greater protection and compensation for tenants.

What this means for you: If you are a landlord or letting agent in Scotland, you must ensure you understand and comply with the new eviction rules and tenancy succession rights to avoid potential fines of up to 36 months' rent. If you are a tenant in Scotland, these changes could offer increased protection and compensation in cases of wrongful tenancy termination.

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