Tenants who believe they have been misled into ceasing to occupy a PRT can raise a claim of Wrongful Termination utilising the Private Housing (Tenancies) Scotland Act 2016. If successful, the First-tier Tribunal (FTT) may grant a Wrongful Termination Order (WTO). The current maximum a landlord can be ordered to pay a former tenant is a sum equivalent to six times the monthly rent charge immediately before the tenancy ended.
From 6th October 2026 the law will change and potential financial awards will be significantly higher. Amendments mean the FTT will calculate awards in multiples of the ‘relevant sum’ rather than the rent charge. The relevant sum will be either the rental charge or £840, whichever is the higher amount.
Maximum Award
If the FTT determines a WTO should be made, the maximum award will be set at 36 times the relevant sum; a staggering £30,240 (or other sum if the rent charge >£840)). The exact sum awarded will be determined by the FTT taking into account the manner of the wrongful termination and the impact on the tenant.
For example, in the recent case of FTS/HPC/PR/25/2854 the FTT considered the facts demonstrated breach at the “more serious end of the scale” and awarded 5 x the rent charge (£850) against the landlord, totalling £4,250. An award of 5 x rent represents 83.3% of the current maximum penalty. This would equate to 30 x the relevant sum and an award of approximately £25,500 under the new provisions.
Minimum Award
The legislation will also stipulate a minimum level of three times the relevant sum £2,530 (or other sum if the rent charge >£840).
An award lower than the minimum level can be made if the FTT considers it appropriate having regard to all the circumstances but nonetheless, the changes mark a significant increase to a landlord’s potential maximum liability.
Landlords will often have a legitimate explanation and a genuine change in circumstances. WTO proceedings can be defended on that basis. All letting agents and landlords should take steps now to familiarise themselves with the forthcoming changes and those who experience a change in circumstances following issue of a Notice to Leave or grant of an Eviction Order are encouraged to seek legal advice promptly.
For advice on Wrongful Termination Orders or any other aspect of private rented sector law, our expert PRS team is here to help.
Visit tcyoung.co.uk or contact us at prs@tcyoung.co.uk.
