An advisory group to the Scottish Government has expressed serious concerns that the introduction of Awaab’s Law could discourage investment in the private rented sector (PRS) and prompt landlords to exit the market. The law, which targets damp and mould issues in rental properties, is set to come into force in October 2026 following its parliamentary approval earlier this year.
Regulatory burden may drive landlords away
The Regulatory Review Group (RRG), which advises the Scottish Government on economic and investment matters, has warned that Awaab’s Law, combined with other forthcoming regulations, will significantly increase the regulatory demands placed on landlords. In a letter to the then-housing secretary Màiri McAllan, RRG chair Professor Russel Griggs cautioned that this cumulative impact could deter new landlords from entering the sector and cause existing landlords to leave.
Professor Griggs emphasised the need for careful sequencing of these regulations to mitigate their combined effect on both the social and private rented sectors. He highlighted that small landlords, who constitute up to 85% of private landlords in Scotland, may be disproportionately affected and criticised the government for insufficient engagement with this group during the consultation process.
Clarifying responsibilities over damp and mould
The RRG also called on the Scottish Government to provide clearer guidance for landlords and tenants, particularly in cases where damp and mould cannot be fully resolved due to structural issues or where tenant behaviour contributes to the problem. Professor Griggs noted that tenants are often unaware of their rights, and many landlords may not be connected to representative bodies or letting agents involved in the consultation process.
He stressed the importance of defining who should inform tenants and landlords about their rights and responsibilities, encouraging early reporting of damp and mould issues, and outlining escalation procedures if problems remain unaddressed within the required timeframes. The group acknowledged that resolving mould and damp often requires cooperation between landlords and tenants, including addressing human behaviours as part of the solution.
Government response and support for small landlords
In response, Màiri McAllan wrote to the RRG in May, affirming the Scottish Government’s commitment to working with small landlords. She recognised that clear guidance on Awaab’s Law will be essential to help both tenants and landlords understand their responsibilities and to assist in assessing damp and mould issues.
McAllan indicated that officials have already begun engaging with a broad range of stakeholders, including tenant groups, social and private landlords, and local authorities, to develop this guidance. She also acknowledged the importance of involving small landlords more fully in this process, given their significant presence in Scotland’s private rented sector.
Balancing tenant protection with sector growth
John Blackwood, chief executive of the Scottish Association of Landlords (SAL), emphasised the need for a balanced approach. He described the tragic case of Awaab Ishak, which inspired the law, as terrible and expressed a shared commitment to preventing similar incidents in the future.
Blackwood stressed that SAL members prioritise property safety and uphold high standards. However, he also highlighted the importance of protecting tenants without hindering growth in the sector, especially amid the current housing emergency. SAL intends to continue collaborating with the Scottish Government to achieve this balance.
What this means for landlords
Landlords in Scotland should prepare for increased regulatory requirements related to damp and mould remediation under Awaab’s Law, effective from October 2026. Small landlords, in particular, may face challenges due to the law’s strict timeframes and the potential need for closer tenant engagement and behavioural management.
It will be crucial for landlords to stay informed about forthcoming guidance from the Scottish Government to understand their responsibilities fully and to ensure compliance. Cooperation with tenants to address mould and damp issues proactively will be essential to meet the law’s standards and avoid penalties.
Source: Based on reporting from Property118
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