The Renters’ Rights Act 2025 (the Act) was introduced by the UK Government with aims of striking a fairer balance between renters’ and landlords’ rights. The majority of the Act applies only to England, and some provisions to Wales.
There will however be some impact north of the border too, as the Act introduces a Britain-wide ban on discrimination against certain categories of tenants.
Chapter 5 applies to Scotland and is expected to be enforced from May 2026. The Act will amend existing legislation including the Private Housing (Tenancies) (Scotland) Act 2016 (2016 Act) to ensure a uniform legal framework to tackle discrimination.
The implications for Scotland’s Private Rented Sector is the introduction of offences concerning discriminatory conduct in relation to children and benefits status. Under the amended 2016 Act it will be a criminal offence for landlords or letting agents to prevent enquiries, viewings, or offering tenancy agreements on the basis that the property may be used by a child. Applying practices in order to make people with children less likely to enter into a tenancy than those without, will also be prohibited. Discrimination in this manner against persons who are, or are likely to, become benefits claims will also be forbidden. The new offences will carry penalties of up to a level 3 fine; currently £1000.
There are some limited defences; where the conduct is a proportionate means of achieving a legitimate aim or where it is required to prevent breaching the terms of an insurance contract. Notably, the former can only apply to discrimination against children and the latter only where the insurance policy was entered into prior to the Act coming into force. The Act also explicitly states there is no prohibition on taking a person’s income into account when assessing affordability.
In relation to existing tenancies (including PRTs, assured tenancies and regulated tenancies) any discriminatory terms in relation to children or benefits status will also be nullified.
Restrictions on Third-Party Influence
The Act will also limit third parties’ scope to influence landlords’ tenant selection practices. Going forward any term of a standard security or insurance contract which require landlords to exclude children or benefit claimants will be of no effect.
Notably, the Act will provide Scottish Ministers powers to extend similar protections to other categories of persons following consultation.
Early preparation is essential to avoid reputational harm and potential prosecution. Although discrimination based on protected characteristics is already prohibited by the Equality Act 2010 landlords and letting agents are advised to review polices and consider whether staff training is required.
If you have any questions about how these changes may affect you or your organisation, or need guidance on preparing, our specialists are here to help.
Contact our PRS team at prs@tcyoung.co.uk or visit www.tcyoung.co.uk to get in touch.
