What the Housing Bill Means for Edinburgh Landlords & Sellers in 2025

Sean McMahon
Oct 13
3 min read

Scotland’s new Housing (Scotland) Bill is now law, bringing in rent controls (CPI + 1% cap, with a 6% ceiling) and tighter obligations on property safety and maintenance. For landlords in Leith and Easter Road (EH6/EH7), this means closer scrutiny on rent reviews, compliance records, and improvement documentation.

Meanwhile, for sellers in South Queensferry (EH30), modest growth in Edinburgh’s average property value (~4.5% YoY) shows continued resilience — even as RICS forecasts softer conditions into 2026.

In this article, we break down what the new law requires, what you should do now, and how The Property & Letting Experts Edinburgh are helping protect both your rental yield and sale value.

1. Key Provisions in the Housing (Scotland) Bill & Timeline

The new Bill, passed in late 2025, cements Scotland’s shift toward long-term rent stability and higher housing standards.

Key takeaways include:

Rent controls: Annual rent increases in designated “rent control areas” are capped at CPI + 1%, up to a maximum of 6%.
Exemptions: Purpose-built Build-to-Rent (BTR) and Mid-Market Rent (MMR) homes are excluded from the cap.
Justified increases: Landlords may apply to exceed the cap for significant property improvements or historic under-renting.
Maintenance & safety: Enhanced duties on EICR, PAT, and Legionella risk documentation, along with evidence of energy-efficiency upgrades.
Implementation: Most provisions begin mid-2025, with enforcement guidance rolling out through early 2026.

St Tridunanas Rest in Restalrig is a popular area for lettings

2. What the Exemptions Mean for Different Landlord Classes

Not all landlords will feel the same effects:

Private individual landlords (EH6/EH7): Most likely to fall within rent-controlled zones. Regular rent reviews and evidence-based improvement documentation will be vital.
Portfolio investors: May benefit from diversifying into MMR/BTR schemes or upgrading existing stock to qualify for above-cap rent reviews.
Corporate/BTR operators: Exemptions allow continued market-linked pricing, making these assets more attractive to institutional investors.
Ultimately, the Bill encourages professionalisation — favouring well-managed, compliant portfolios.

The Grange in Edinburgh is one of the most sought after locations

3. Landlord Checklist: Rent Review Audit & Compliance Readiness

Now’s the time for a spring-clean of your property paperwork.

✅ Rent review audit: Confirm last rent increase date, supporting evidence (comparable rents, condition reports).

✅ Safety documentation: Ensure valid EICR, PAT, Smoke/CO alarms, Legionella and Gas Safety certificates.

✅ EPC review: Identify cost-effective steps toward EPC C (draft-proofing, heating controls, LED lighting).

✅ Improvement log: Keep dated photos, invoices, and tenant communications to justify any rent adjustments above the cap.

✅ Letting agent review: Ensure your agent is transparent, SAL-accredited, and provides PayProp-backed financial reporting.

(The Letting Experts Edinburgh offer a full audit and compliance review service.)

4. Seller Angle: Turning Policy Change into a Marketing Advantage

Policy change creates urgency — and urgency sells.

With rent caps reducing some investors’ short-term appetite, motivated buyers (especially families and first-time movers) are stepping back into the market.

For sellers in South Queensferry (EH30) and Leith (EH6), 2025 is a strategic window:

Less competition: Many landlords may list to rebalance portfolios.
4.5% YoY price growth in Edinburgh outperforms UK averages, showing continued buyer demand.
Positioning matters: Highlight “energy efficiency”, “turn-key condition”, and “low running costs” — key search terms post-Bill.
By launching while confidence and affordability are balanced, sellers can still achieve strong results before the full effects of policy ripple through.

5. Micro Market Snapshots: EH6 vs EH30

EH6 / Leith: 1-bed flats averaging £1,225 pcm, typically let within 10 days. Rent control scrutiny will be highest here, so documentation is key.
EH30 / South Queensferry: Average 3-bed homes up ~4.3% YoY, with buyer demand driven by commuter rail access and family-friendly schools.
The contrasting dynamics show that well-timed sales and well-documented rentals can both outperform if managed strategically.