Scotland Real Estate Faces Policy Transition Before 2026 Election

As Scotland approaches the 7 May 2026 parliamentary election, the property market is entering a period of significant regulatory transition. Reforms across energy standards, housing delivery, taxation, planning and rent control are reshaping the legal and investment landscape.

The proposed Energy Performance of Buildings (Scotland) Regulations 2025 are expected to take effect on 31 October 2026. The new framework will replace the existing energy efficiency metric with a heat retention rating and reduce EPC validity to five years.

Transitional provisions are anticipated, allowing existing certificates for properties marketed before the implementation date to remain valid for one year. Minimum standards for the private rented sector are also under development as part of Scotland’s decarbonisation strategy.

The Scottish Government plans to establish More Homes Scotland, a national housing agency aimed at accelerating delivery across all tenures. Expected to launch in 2027–28, it will focus on affordable housing at scale, rural and island needs, land assembly and enabling infrastructure for stalled development sites.

An update to Parliament is due in March 2026, with the agency being developed in collaboration with local authorities and the Scottish National Investment Bank.

The 2026–27 Scottish Budget confirmed that LBTT rates and thresholds remain unchanged for residential and commercial property. Relief for investors participating in co-ownership contractual schemes is expected from April 2026, subject to parliamentary approval.

Wider reform relating to investor funds and seeding relief has been paused until after the election, with further LBTT reform anticipated in the next parliamentary term.

Consultation on compulsory purchase reform concluded in December 2025. A summary of responses is expected in early 2026, with draft legislation potentially introduced in the next session.

Planning Circular 4/2025 has updated earlier guidance to reflect evolving planning practice and regulatory expectations.

Draft regulations under the Housing (Scotland) Act 2025 propose exemptions from rent controls for mid-market rent and build-to-rent sectors, potentially effective from 1 April 2026.

The Act also enables regulations governing early termination of purpose-built student accommodation tenancies, expected to include a 28-day notice period on specified grounds.

The Scottish Building Safety Levy is scheduled for introduction on 1 April 2028, with levy rates to be announced in June 2026. Edinburgh will introduce a 5% visitor levy on overnight stays from 24 July 2026.

As experts from International Investment report, the convergence of energy, tax and housing reforms signals a structural recalibration of Scotland’s property market, with sustainability compliance, fiscal clarity and housing delivery capacity set to define investment strategy beyond the 2026 election.