Awaab’s law risks pushing landlords out of the PRS in Scotland

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Awaab’s law risks pushing landlords out of the PRS in Scotland

An advisory board to the Scottish government has warned Awaab’s Law will deter investment and cause landlords to leave the market.

In a letter to the government, the Regulatory Review Group (RRG) raised concerns about the implementation of Awaab’s Law in Scotland.

The law received Parliamentary approval in March and is due to come into effect in October 2026, requiring social and private landlords to address damp and mould within strict timeframes.

Landlords to leave the market

RRG, which advises the Scottish government on investment and the economy, wrote a letter to the then-housing secretary Màiri McAllan.

Chair of the group, Professor Russel Griggs, warned Ms McAllan a combination of legislation, including Awaab’s law, will increase the regulatory burden on landlords.

He said: “The cumulative impact of regulations on businesses will be significant and could deter many from joining the sector, and indeed cause landlords to leave the market.

“Further thought will need to be given to the sequencing of these regulations with regard to other upcoming policies with an impact on housing in the social rented sector, private rented sector or both.”

Mr Griggs added small landlords will be particularly affected by Awaab’s Law and accused the Scottish government of not listening to small landlords in the consultation process.

He added: “Microbusinesses form up to 85% of private landlords, and it is concerning that this group may not have been adequately represented in engagement with the Scottish government on proposed regulations at this stage.

“Whilst acknowledging, from the Business and Regulatory Impact Assessment (BRIA), the levels of engagement which have been carried out to date, more needs to be done to engage with the significant cohort of microbusiness owning landlords, to investigate the impact of the regulations on them and their ability to remain in the sector as a result.”

The cause of the mould is tenant behaviour

The group have also called on the Scottish government to provide clearer guidance to landlords and tenants on situations where damp and mould cannot be fully resolved in a property.

Mr Griggs said: “Tenants are often unaware of their existing rights, and many landlords will have no engagement with the representative bodies / letting agents which have engaged with officials, and will be unaware that a change to the legal framework is in development.

“Clarifying who is responsible for informing tenants and landlords about their rights and responsibilities will be a key area for officials to make progress on. It is also important that tenants are encouraged and supported to report damp and mould issues early, and that they know how to escalate issues that remain unaddressed within the prescribed timelines.

“Clear guidance will be required for scenarios in which mould and damp cannot feasibly be remediated within a property due to structural issues, as well as in instances where the cause of the mould is tenant behaviour. Officials agreed that addressing human behaviours would often need to be part of the remedy, and that landlords and tenants will often need to work together to tackle mould and damp.”

Help for small landlords

In response, then Housing Secretary Màiri McAllan wrote to the RRG in May, saying the Scottish government will work with small landlords.

She said: “I absolutely agree that guidance on Awaab’s Law will be critical to ensuring that tenants and landlords understand their responsibilities and support their understanding and assessment of damp and mould.

“My officials have already begun engagement with stakeholders representing tenants, social landlords, private landlords, local authorities and more to seek their input into the guidance. This includes where we can build upon the good practice already in the sector, and I foresee the inclusion of case studies in the guidance to further illustrate key points.

“My officials will give further consideration as to how small landlords, who make up the majority of Scotland’s private rented sector, can be engaged in this process.”

Needs to strike the right balance

Scottish Association of Landlords chief executive, John Blackwood, told Property118 that the Scottish government needs to strike the right balance.

He said: “Awaab Ishak’s case was terrible and tragic, we must all ensure that it similar cases are prevented from happening in the future.

“SAL members treat the safety of our properties with the utmost seriousness and hold ourselves, and each other, to the highest possible standards.

“We are also mindful of the importance of balancing protecting tenants with not stifling growth in our sector, particularly at this time of housing emergency, and will continue to work with the Scottish government toward this.”

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