Key Legislative Changes for Landlords in 2026

The year ahead is shaping up to be one of the most significant in recent memory for Scotland’s private rented sector. With new legislation on damp and mould, major reforms under the Housing (Scotland) Act 2025, and the next phase of Making Tax Digital, landlords will need to stay alert and proactive to remain compliant. Below, we break down the three biggest changes coming in 2026 and what they mean for property owners.

New Damp & Mould Legislation Coming into Force (October 2026)

A major regulatory shift is on the horizon as Scotland prepares to implement new legislation aimed at tackling damp and mould in rental homes. Originally introduced in England following the tragic death of Awaab Ishak, the framework has now been adopted in Scotland and is scheduled to take effect in October 2026.

The legislation sets out clear statutory timelines for how landlords must respond when damp or mould is reported. This includes defined periods for acknowledging the issue, investigating the cause, and carrying out remedial work. The intention is to ensure tenants are protected from health risks and that landlords take swift, structured action.

For landlords, this means now is the time to review maintenance processes, communication systems, and contractor availability. Those with older properties or recurring moisture issues may need to take a more proactive approach to inspections and preventative work. When the law comes into force, the expectation will be that landlords can demonstrate compliance – not simply good intentions.

Housing (Scotland) Act 2025 – Rent Control Details Pending

The Housing (Scotland) Act 2025 received Royal Assent at the end of last year, but several key elements remain undefined. The biggest unknown is how rent control will be implemented across Scotland.

While the Act confirms that rent control zones will be introduced, the Scottish Government has yet to publish the detailed framework. This includes how zones will be designated, how rent increases will be capped, and what evidence local authorities will need to provide.

Further guidance is expected later this year, and landlords should keep a close eye on updates. Rent control is likely to be one of the most impactful policy developments of 2026, influencing investment decisions, tenancy management, and long‑term portfolio planning.

Making Tax Digital: New Reporting Requirements from April 2026

From April 2026, landlords with a gross income of £50,000 or more will be required to comply with new HMRC rules under the Making Tax Digital (MTD) programme.

Key changes include:

• Income must be recorded and submitted using HMRC‑compatible digital software
• Quarterly reporting will replace the traditional annual tax return
• Landlords will need to maintain accurate, real‑time digital records

While the aim is to streamline tax administration, many landlords will need to update their accounting systems or adopt new software. Starting preparations early will help avoid last‑minute stress.

Preparing for the Year Ahead

With legislative changes, tax reforms, and uncertainty around rent control, 2026 will be a pivotal year for landlords. Staying informed, organised and proactive will be essential to navigating the evolving landscape.

If you’re a landlord seeking guidance on compliance, property management, or how these changes may affect your portfolio, feel free to reach out to your Dwello contact or give us a call on 0141 357 3579.