Housing (Scotland) Act 2025: What Ayr landlords must do before 2027

Letting agent discussing a rental property with a couple during a viewing, representing landlord guidance and tenancy advice in Ayr.

If you own rental property in Ayr — whether a flat near the town centre, a family home in Dalmilling, a student let close to Ayr College, or a portfolio spanning multiple postcodes across South Ayrshire — the Housing (Scotland) Act 2025 is the most significant piece of legislation you need to understand right now.

The Act builds on the foundations of the Private Housing (Tenancies) (Scotland) Act 2016, which introduced Private Residential Tenancies (PRTs) and removed fixed-term assured tenancies for most private lets. The 2025 Act goes further, introducing new frameworks around rent control, pet consent, anti-discrimination duties, and information-sharing powers. With a key South Ayrshire Council deadline approaching in May 2027, the time to prepare is now — not next year.

At Martin & Co Ayr, we are helping landlords across the area navigate these changes with confidence. Here is a clear, practical breakdown of what the Act means for you.

Rent control areas: what Ayr landlords need to watch

One of the most closely watched elements of the Housing (Scotland) Act 2025 is the rent control area designation process. Under the Act, Scottish Ministers may designate rent control areas following recommendations from local authorities. Where an area is designated, restrictions may apply to rent increases both during a tenancy and between tenancies. 

South Ayrshire Council is required to complete a rent condition assessment by May 2027. This assessment will examine local rent levels, affordability pressures, and housing supply across the area — including Ayr itself, as well as surrounding areas such as Prestwick, Troon, and Girvan.

What this means in practice

Until the assessment is complete and a decision made, Ayr does not sit within a designated Rent Control Area. However, landlords should not take a passive approach.

If South Ayrshire is designated, rent increases between tenancies could be capped at a level set by Scottish Ministers, which may be linked to CPI inflation or a fixed percentage. Landlords with properties in high-demand areas — such as those close to Ayr town centre, the seafront, or within walking distance of Ayr train station — could be directly affected.

We recommend reviewing your current rental pricing strategy now, before any designation is confirmed. Martin & Co Ayr can provide a current market appraisal to help you benchmark your rents accurately.

New pet consent rules under Private Residential Tenancies

The Housing (Scotland) Act 2025 will introduce changes to how landlords handle pet requests under Private Residential Tenancies once the relevant provisions are commenced. Landlords will be required to consider written pet requests on a case-by-case basis and will not be able to unreasonably refuse consent. 

What counts as a reasonable refusal?

Reasonable grounds for refusal may include the size of the property, the type of pet, building management restrictions (particularly relevant for flatted properties in areas like Ayr town centre or Newton-on-Ayr), or evidence of a tenant’s previous tenancy history.

Once the relevant provisions are brought into force, landlords are expected to be able to require appropriate pet damage insurance or similar financial protection where permitted by the legislation. This is a practical safeguard worth building into your tenancy agreements as standard.

If you manage your properties through Martin & Co Ayr, our team will ensure your tenancy documentation is updated to reflect these new requirements — removing the administrative burden from you entirely.

Anti-discrimination duties when selecting tenants

The Housing (Scotland) Act 2025 introduces additional protections by making it unlawful to discriminate against prospective tenants because they have children or receive benefits, alongside landlords’ existing duties under the Equality Act 2010. 

This includes — but is not limited to — discrimination on the grounds of race, disability, religion, sex, or receipt of benefits. The latter is particularly relevant: refusing to let to tenants in receipt of housing benefit or Universal Credit without legitimate, documented justification carries increasing legal risk.

Practical steps for Ayr landlords

Document your tenant selection criteria clearly and apply them consistently across all applicants. Use a structured referencing process — Martin & Co’s state-of-the-art tenant background checks are designed precisely to support this, providing objective, verifiable data on which to base letting decisions.

Keeping clear records of why a tenancy was offered or declined protects you in the event of a complaint or investigation.

Information-sharing powers: what changed on 1 April 2026

From 1 April 2026, new information-sharing powers under the Housing (Scotland) Act 2025 came into force. These powers allow Scottish Ministers, local authorities, and Rent Service Scotland to share data about private rented properties — including rent levels, landlord registration details, and property condition information.

For Ayr landlords, this means greater transparency and scrutiny of the private rented sector across South Ayrshire. Ensuring your Scottish Landlord Register entry is current and accurate is no longer optional — it is an active compliance requirement with real enforcement consequences.

Making Tax Digital: the deadline Ayr landlords cannot ignore

Alongside the Housing (Scotland) Act 2025, there is another major compliance shift that every Ayr landlord needs to plan for: Making Tax Digital for Income Tax Self Assessment (MTD for ITSA).

From 6 April 2026, individuals with total qualifying gross income from property and self-employment above £50,000 may need to comply with Making Tax Digital for Income Tax, including keeping digital records and submitting quarterly updates to HMRC. Those with income over £30,000 will follow from April 2027.

What this means for your rental income reporting

If you receive rental income from one property or a portfolio of properties across Ayr and South Ayrshire, you will need to:

Keep digital records of all rental income and allowable expenses throughout the tax year.

Submit quarterly updates to HMRC using MTD-compatible accounting software.

File an end-of-period statement and a final declaration annually.

This is a material change to how landlords manage their finances — particularly for those accustomed to a once-a-year accountant appointment. Portfolio landlords managing multiple properties in areas such as Whitletts, Holmston, or Forehill should review their record-keeping processes now to avoid penalties.

Getting ahead of the MTD transition

Speaking to a qualified accountant familiar with property income is strongly advisable. Martin & Co Ayr can also signpost you to trusted local professionals as part of our wider support for landlords across the South Ayrshire area.

Award-winning local expertise you can rely on

Keeping up with changing legislation is easier when you have an experienced local agent by your side.

Martin & Co Ayr is proud to have been named the Gold Winner for Estate Agent in Ayr at the British Property Awards 2025. This independent award recognises the branch’s commitment to delivering outstanding customer service, local market knowledge and professional support for landlords, buyers, sellers and tenants across South Ayrshire.

Whether you own a single buy-to-let property or a growing portfolio, our award-winning team combines local expertise with the strength of a national network to help you stay compliant, maximise your investment and navigate legislative changes with confidence.

How Martin & Co Ayr supports you through every change

Legislation does not stand still — and neither do we. Martin & Co has over 30 years of experience in residential lettings, managing more than 41,000 properties across our national network and letting 370 new properties every week. Our Ayr team brings that national expertise to a genuinely local level, with dedicated professionals who know South Ayrshire’s rental market inside out.

Whether you own a single flat on Carrick Road or a portfolio stretching from Ayr to Prestwick, we offer flexible management options — from our Premium Managed service with full rent and legal protection through to Tenant Find for landlords who prefer a hands-on approach. Every service is built around transparent, straightforward fees with no hidden costs.

We stay ahead of legislative changes so you do not have to — from updating tenancy documentation to ensuring your compliance obligations under Scottish law are met at every stage.

Your next steps before 2027

The Housing (Scotland) Act 2025 is not a distant concern — the South Ayrshire Council rent condition assessment deadline of May 2027 is closer than it appears, and the MTD for ITSA quarterly reporting requirements are already in motion for higher-earning landlords.

Acting now means you are positioned ahead of the curve, not scrambling to catch up.

Book a free landlord consultation with the Martin & Co Ayr team today. We will walk you through how the Housing (Scotland) Act 2025 affects your specific properties, review your current tenancy documentation, and help you build a compliance-ready letting strategy for the years ahead.

Contact Martin & Co Ayr directly to arrange your free, no-obligation consultation — and take the complexity out of being a landlord in South Ayrshire.

You can also book a free rental valuation online to find out what your Ayr property could achieve in today’s market. Get your free instant valuation now and let our local experts do the rest.

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