Scotland’s build-to-rent (BTR) sector is set for a comeback after a period of uncertainty that resulted in stalled development activity.
New legislation exempting BTR from rent control measures has the potential to unlock nearly 10,000 homes and trigger a wave of renewed investment, according to property consultancy Ryden. The findings form part of Lambert Smith Hampton’s (LSH) “Live & Kicking” Build to Rent Report 2026, which highlights how regulatory change in Scotland could unlock new development.
There are currently no large-scale BTR schemes under construction anywhere in Scotland, despite a significant pipeline of approved developments. This highlights the scale of the slowdown that has gripped the market since 2022.
Development activity effectively came to a halt following the introduction of emergency rent controls during the cost-of-living crisis, which led to a sharp drop in investor confidence and delayed new projects across the country.
However, the introduction of new regulations exempting BTR developments from rent controls has provided long-awaited clarity, prompting a significant shift in sentiment across the sector.
The Private Housing Rent Control (Exempt Property) (Scotland) Regulations 2026, which came into force in April, confirm that qualifying BTR schemes will not be subject to rent control measures, removing a key barrier that has held back delivery for more than three years.
As a result, developers and investors are now returning to the market, with activity expected to focus initially on Glasgow and Edinburgh.
Ryden, part of the LSH Group, led the Scotland-focused analysis within the report.
David Fraser, Partner in Residential Investment & Development, Ryden, said: “The market effectively ground to a halt after 2022, but we’re now seeing a clear turning point. The introduction of rent control exemptions has restored the certainty investors need to commit to new projects.
“Scotland has moved from one of the most uncertain BTR markets in the UK to one of the most compelling investment opportunities. With a substantial consented pipeline of nearly 10,000 units already in place, the opportunity now is to unlock delivery and help address the country’s housing shortfall.”
More than 5,200 BTR homes have been delivered across Scotland to date, with activity heavily concentrated in Glasgow and Edinburgh. However, this remains well below the level seen in comparable UK cities, where BTR has become a key driver of housing supply and city centre regeneration.The attractiveness of the BTR sector is reinforced by strong tenant demand and occupancy levels in the completed schemes.
Industry experts also point to significant untapped potential, with Scotland’s major cities lagging far behind English counterparts in terms of BTR provision, despite strong population growth and a high proportion of young renters.
There has also been a marked increase in interest in the development of co-living and single-family rental (SFR) products in Scotland, both of which are expected to play a growing role in accelerating delivery, particularly as policymakers seek solutions to Scotland’s housing emergency.
Crucially, recent policy changes mean Scotland now offers a more stable and potentially more attractive regulatory environment for BTR investment than England & Wales, opening the door for domestic and international capital to re-enter the market.
With demand continuing to rise and barriers to investment now easing, Ryden believes Scotland is entering a new phase for build-to-rent growth, with long-delayed developments now expected to move forward.
The most historic changes to private renting in England now give 11 million tenants landmark new rights and protections that will transform their experiences
11 million private tenants in England are now protected by the biggest increase to renters’ rights in over 40 years
No more Section 21 ‘no-fault’ evictions as the Renters’ Rights Act stamps out the practice for good, as part of a huge package of new protections starting today (1 May 2026)
New rights with tougher fines now in force will help shield renters from financial exploitation, homelessness, discrimination and more
The most historic changes to private renting in England are now in action, giving 11 million tenants landmark new rights and protections that will transform their experiences.
This huge new package in force from today (1 May 2026) includes the highly anticipated ban on Section 21 ‘no-fault’ evictions – ending the practice of evicting tenants without justification which will give renters greater security and help prevent homelessness.
Prime Minister Keir Starmer said: “For too long, families have lived with the constant fear of eviction, while young people have been outbid for the homes they need to start their lives.
“Today we are putting that right. We promised to fix a broken rental system and we’re delivering.
“This historic action will make renting fairer, safer and more secure for millions, so people can settle, put down roots and build their lives.”
Other changes will protect renters’ pockets by limiting rent increases to once a year and upfront rent demands to just one month’s payment. Bidding wars are now banned, so no one has to battle it out with high offers to secure a place and tenants can challenge unreasonable rent hikes.
Renters now have the flexibility to end any tenancy with no more than two months’ notice, as fixed-term agreements become invalid from today.
It is now also illegal to discriminate against prospective tenants for being on benefits or having children and pet requests must be reasonably considered.
Housing Secretary Steve Reed said: “Renters have been living at the mercy of rogue landlords and in fear of losing their home for too long.
“We are putting a stop to this with historic changes that give renters the security they deserve – marking the beginning of a new era for private renters.”
These new laws come with heftier penalties of up to £40k if they are broken and rogue landlords can no longer hide, as councils’ new powers under the Renters’ Rights Act kick in to investigate and clamp down harder.
Alongside boosted funding for councils to oversee the Act and take robust enforcement action, the courts are being digitalised to help tenants and landlords access justice, with millions being invested to simplify processes.
Generation Rent’s Chief Executive Ben Twomey said: “Today marks a new era for private renters across England. This new law is a vital step towards re-balancing power between renters and landlords and should be celebrated.
“Our homes are the foundations of our lives, but, for decades, Section 21 evictions forced renters to live in fear of being turfed out of our homes, preventing us from raising valid concens with our landlords. At last, this outdated and unfair law has been sent packing.
“If this law is to reach into people’s homes and improve their lives, it’s vital councils across the country are using all their powers to make sure landlords stick to the new rules. Meanwhile I encourage every renter to take the time to understand their new rights and how to enforce them.”
Clara Collingwood, Director at the Renters’ Reform Coalition, said: “It’s fantastic that section 21 no fault evictions have finally been banned. For too long this everyday injustice has allowed landlords to get away with outrageous behaviour – profiting from unhealthy homes and threatening tenants who try to stand up to them.
“And as well as abolishing section 21, the Renters’ Rights Act will make it easier for tenants to have pets in their home, limit rent up front to one month, end exploitative practices like bidding wars and make it easier to hold landlords to account over repairs. These are the biggest changes to private renting in a generation.
“It’s taken years of campaigning by renters’ organisations to get us to this point but thanks to this legislation, today we are significantly closer to securing decent, secure homes for every renter.”
Crisis Chief Executive Matt Downie said: “Today marks an important milestone for the millions of people renting across England who have lived without stability and security for far too long. Private renters will finally be able to breathe a sigh of relief without the threat of a ‘no fault’ eviction or an unfair rent increase pushing them into homelessness.
“Section 21 evictions have long been one of the leading causes of homelessness. As an organisation we have campaigned long and hard to strengthen renters’ rights and today’s legislation is a critical step in doing so.
“At last, private renters can feel safe and secure in their homes without the threat of an unnecessary eviction forcing them into homelessness.”
How have renters’ rights improved?
No more Section 21 ‘no-fault’ evictions – private landlords can no longer evict tenants without a valid reason.
Goodbye to fixed contracts – all tenancies in the private rented sector will roll on from month to month or week to week (depending on your arrangement) with no end date, giving renters more flexibility. Tenants can end them with two months’ notice.
Fairer rent rules – landlords can only raise rent once a year and renters can challenge unfair hikes.
No more bidding wars – landlords must stick to no more than the advertised rent price.
One month’s rent upfront, max – landlords can’t ask for more.
No discrimination – it’s now illegal to refuse tenants just because they receive benefits or have kids.
Pets welcome – renters can now ask to live with a pet and landlords must reasonably consider it.
Section 21 ‘no-fault’ evictions
Private landlord possession claims using the Section 21 process that are going through the courts on the commencement date will proceed as normal.
After 1 May 2026, the courts will still be able to process Section 21 possessions that are ongoing, for example:
if a private landlord served their tenant with a Section 21 notice before 1 May 2026, any court possession proceedings must be made in line with the usual rules and no later than 31 July 2026, when using the Section 21 court process.
after this date (31 July 2026), the landlord will not be able to use the Section 21 process and must use the new grounds for possession.
Dogs Trust Pet Friendly Housing Lead, Jennifer Leonard, said: “Across the UK, one in seven requests we receive from people wishing to hand over care of their dog is due to a housing-related issue.
“Now, we hope that fewer renters will face the heartbreaking choice between finding a safe place to live and keeping their beloved pet. The new legislation, alongside our resources on responsible pet ownership, provides clarity to landlords and tenants and will allow more people to benefit from the joy that pets can bring.”
Joanna Elson, CBE, Chief Executive at Independent Age said: “The implementation of the Renters’ Rights Act is an important milestone for tenants of all ages. For the rising number of older private renters that we support, it is vital.
“Many of the tenants in later life that we speak to say that, until now, they lived in a constant state of anxiety, worried about being evicted for no reason and the consequences of asking their landlord for repairs.
“Although the job of making renting safe, secure and affordable for everyone is not yet done, today, we are a significant step closer.”
Seyi Obakin, chief executive of leading youth homelessness charity Centrepoint, said: “Ending youth homelessness requires a series of policies aimed at reducing the number of young people at risk and supporting those already experiencing it into sustainable tenancies and employment.
“The protections in the Renters’ Rights Act will prevent thousands of young people pushed into homelessness every year because of no fault evictions. This is a cause for real celebration: from the beginning of this month, fewer young people will end up in housing crisis or trapped in temporary accommodation as a result of a no-fault eviction.
“Private renting is the default option hundreds of thousands of young people across the country – the increased protections in this Act mean they better able to rely on the security of their tenancies and enjoy and benefit from the stability that brings.”
Amira Campbell, National Union of Students President said: “Renting as a student can be as stressful as any university assignment. The Renters’ Rights Act is a transformative piece of legislation, giving us the ability to leave tenancies, capping the rent that can be demanded upfront, and stopping the rush to sign next year’s contract.
“I am proud of the student leaders who worked with us to ensure that Act reflects the reality we face as students and gives us the reassurances we need to be able to feel secure in our housing. Those students have made sure that future students will not face the same exploitative conditions they had to endure.
“I hope the momentum to give renters our rights only continues. Students are an important part of any university town or city, and we need a warm, decent place to live.”
David Bowles, Head of Public Affairs at the RSPCA, said: “This is an historic day for pet ownership.
“For too long, renters in England have been unfairly denied the potential joy of pet ownership. That ends thanks to this new law.
“This change is a lifeline – not just for families wanting to add a loving pet to the household, but for the many thousands of animals currently stuck in many full to bursting centres, who will now have many new opportunities to find loving adopters.
“Pet ownership is such a big commitment – but can be so rewarding. At the RSPCA, we are celebrating that the Renters’ Rights Act will facilitate happier, healthier tenants right across the country – and help us tackle a pet rehoming crisis.”
Emma Haddad, CEO at St Mungo’s: “The Renters’ Rights Act represents a sea change moment for people who have been pushed into or put at risk of homelessness.
“Measures in the Act, including a ban on Section 21 ‘no-fault’ evictions and limits on rent increases, signal a fundamental shift away from a system that has led people into homelessness instead of into a secure and stable home.
“Alongside the Renters’ Rights Act coming into force, we need to ensure that all elements of the Government’s National Plan to End Homelessness are progressed.”
Nathan Emerson, CEO of Propertymark, comments: “Today marks a significant step forward for tenants across England as the Renters’ Rights Act comes into force, bringing in a new era of protections and greater transparency in the private rented sector.
“The removal of Section 21 means tenants can no longer be evicted without a specific legal reason, which represents a major shift in security of tenure. At the same time, the new system places greater responsibility on landlords and agents to ensure every step of the process is evidence-based and fully compliant with the law.
“This is a complex transition for the sector, but professional, well-trained and qualified letting agents will play a vital role in making sure these changes work effectively in practice.”
Industry support continues
Propertymark continues to support agents as they implement the new legislative framework, helping ensure they remain compliant, informed, and confident in their responsibilities.
In turn, well-trained and qualified agents are best placed to guide their landlords effectively through these changes, ensuring that tenants benefit from consistently high standards of professionalism, transparency, and legal compliance across the rental sector.
The stronger the understanding within the agency sector, the better the experience and protection delivered to tenants under the new system.
Workplace expert, Acas, commissioned YouGov to ask which changes in the Employment Rights Act 2025 will have the biggest impact on bosses and workers.
New rights on sick pay topped the polls for both, followed by new protections on unfair dismissals. Employers ranked new paternity leave rights as their third biggest while workers opted for the new changes on flexible working.
The valuable insights gained from the results will help Acas target its support for workers and bosses where they need it the most.
Niall Mackenzie, Acas Chief Executive, said: “It is clear from our polls that new worker rights on sick pay and protections from being unfairly dismissed from work are at the forefront in the minds of employers and workers.
“Acas will play a crucial role working with employers, workers and their representatives on the implementation of the Employment Rights Act and updating its advice and training.
“These reforms represent the biggest shake-up to employment law in a generation. Acas remain best placed as independent experts helping everyone at work throughout this period of change.”
The survey results revealed that:
43% of employers said that workers getting sick pay for the first day of illness rather than the fourth day would have the biggest impact on them and 36% of workers also listed it as their biggest impact too.
Workers being protected from unfair dismissal after six months in a job instead of two years was the second most-commonly chosen reform with 31% of employers and 30% of employees selecting this.
For employers, rights for paternity leave from the first day of employment was their third-most important reform (28%), while workers said making it easier to get flexible working arrangements at work (28%) was theirs.
New rules, brought in by the Employment Rights Act, regarding paternity leave and sick pay will come into force on 6th April 2026.
From 6 April, employees will be eligible for paternity leave from the first day of employment. Currently employees must have worked for their employer for 26 weeks before they are eligible.
From 1 January 2027, employees will be protected from unfair dismissal if they have worked for their employer for at least six months. Currently an employee must have two years continuous service to be able to claim unfair dismissal.
A dismissal may be considered unfair by law if there was no fair reason for the dismissal; the reason was not enough to justify dismissing them; or the employer did not follow a fair procedure.
In 2027 new measures will come into force intended to improve access to flexible working.
Flexible working can involve a change to when, where or how someone works. Employers and employees should follow the Acas Code of Practice on flexible working when handling a request.
Acas has an online roadmap of when all the new expected law changes in the Employment Rights Act are likely to come into effect, which includes webinars and training: Employment Rights Act 2025 – Acas
A recent report from the Health, Social Care and Sport Committee of the Scottish Parliament on ADHD and autism support highlighted that children and adults are frequently waiting multiple years for assessments of these conditions.
It called on the Scottish Government to take urgent action to develop and implement a national plan that ensures adults and children with autism and ADHD across all health boards in Scotland have clear, consistent pathways to support.
The report further reinforces the need for the Scottish Government to introduce the Learning Disabilities, Autism and Neurodivergence (LDAN) Bill to Parliament at the earliest opportunity.
The LDAN Bill would help tackle long waiting times through new national and local strategies and introduce mandatory training for health and social care staff, as well as teachers and school staff, to ensure people’s needs are identified and met.
The importance of the LDAN Bill in tackling the inequalities faced by individuals and their families cannot be overstated, and it has the potential to make a real difference for them in Scotland across education, healthcare, and employment.
The Community Wealth Building Bill has been passed by the Scottish Parliament.It will support investment in communities with councils, health boards and other public bodies focusing on the generation, circulation and retention of wealth in local and regional economies.
This could include buying or procuring more goods and services from local businesses, boosting social enterprises or helping community groups to acquire vacant buildings and land.
The Community Wealth Building Bill has been passed by the Scottish Parliament.
It will support investment in local economies.
This could include buying more goods and services from local businesses or boosting social enterprises.
Public Finance Minister Ivan McKee said: “Community Wealth Building is an approach to economic development that can deliver sustainable growth and foster resilience in our local economies.
“This unique legislation will help to deliver more benefit from investment in local economies so that they become fairer, greener and more prosperous.
“It will also strengthen partnership working in our communities, and I look forward to working closely with public bodies to building on existing links.”
Neil McInroy, Chair of the Economic Development Association Scotland, commented: “We support the Bill because it marks a positive shift in economic development amid wider global crises and upheaval.
“Some local councils and many organisations across Scotland are already advancing Community Wealth Building, and this Bill provides the enabling framework that secures that progress and deepens it.
“By changing patterns of wealth, it boosts productivity, helps tackle child poverty and cost‑of‑living pressures, and builds economic dynamism. Crucially, it advances economic democracy by giving communities, workers, and all of us a fuller stake in Scotland’s future.”
Stacey Dingwall, Head of Policy & External Affairs (Scotland) at the Federation of Small Business (FSB) said: “FSB is a long-time supporter of the Community Wealth Building agenda, therefore it’s welcome to see the Bill pass today.
“Opening up public procurement contracts to small businesses is crucial to boosting economic growth, yet many still face barriers to accessing opportunities.
“Passing this legislation gives us a real chance to make progress here. Investing more public money in local businesses is also an investment in local job opportunities, ensuring as much wealth as possible is retained in local communities.”
Scotland will become the first country in the world to legislate for implementation of the Community Wealth Building economic development model at national, regional and local level.
The Scottish Parliament has approved government legislation which will help ensure EURO 2028 in Scotland is fair and affordable for supporters and businesses.
At the heart of the UEFA European Championship (Scotland) Bill is a commitment to putting fans first by helping to safeguard against touts and preventing EURO 2028 tickets being sold above face value or for profit in Scotland.
It is part of a package of measures to make sure tickets are sold fairly and accessibly. UEFA has announced that more than 40% of tickets sold for the tournament will be in the lowest price categories and that there will be no surge or dynamic pricing. Tickets will be allocated through a ballot to avoid queues and pressure on fans.
An official UEFA resale platform will also allow tickets to be resold only at face value to avoid ticket touts. Resale outside the official platform will not be authorised, ensuring greater fairness for fans.
Provisions in the Bill will also protect commercial rights by preventing unauthorised street trading and advertising in event zones and give Police Scotland and Glasgow City Council the powers they need to enforce rules fairly.
Minister for Business Richard Lochhead said: “Scotland is the perfect stage to host three of the world’s top sporting events over the next three years – the Commonwealth Games 2026, the Tour de France Grand Depart 2027 and the UEFA EURO 2028 – bringing real and lasting benefits, from supporting jobs and local businesses to showcasing Scotland to millions of people around the world.
“The passage of this Bill confirms that Scotland is ready to co-host EURO 2028 in a way that is fair for supporters and businesses.
“This Bill put fans first, with strong protections against ticket touting and measures to tackle ambush marketing, so supporters can enjoy this once-in-a-generation event on equal terms.”
Executive Director of Supporters Direct Scotland Alan Russell said: “As supporters of our national game, and football in general, we welcome this Bill which we hope will keep tickets affordable and accessible to all.
“By banning the unauthorised sale of tickets for more than face value, UEFA have sent a clear signal that football is for the fans, and that profiteering by ticket touts is not welcome here.
“We’re looking forward to another fantastic tournament, with Hampden packed to the rafters with real fans, and can’t wait to follow Scotland all the way to the final!”
Around three million tickets are expected to go on sale across the tournament, which is being jointly hosted by Scotland, England, Wales and Ireland in June and July 2028.
Six matches will be played at Hampden Park in Glasgow and the Scottish Government is investing up to £73 million to support delivery of EURO 2028 in Scotland.
The tournament is expected to generate an estimated £270 million boost to the Scottish economy, supporting jobs, tourism and local businesses across the country.
£3.2 million of Scottish Government funding will help to reduce barriers to opportunity, bring communities together through shared national moments and showcase Scotland as a world class host of major events.
What do you think of the proposals laid out in the Scottish Government’s draft Climate Change Plan? Do they go far enough? Are they detailed enough? What more can be done to help ensure Scotland reaches its net zero targets?
The Scottish Parliament is keen to hear the views of individuals, community groups and organisations on the draft Plan for 2026-2040, by Sunday 25 January 2026.
The Plan sets out how the Scottish Government intends to meet emission reduction targets across all portfolio areas and sectors of the economy, as Scotland looks to be ‘net zero’ in carbon emissions by 2045.
Holyrood’s Net Zero, Energy & Transport Committee will lead the cross-parliamentary scrutiny.
Edward Mountain MSP, Convener of the Committee said:“Climate change affects us all, so it’s crucial that the voices of the people of Scotland are heard on this pivotal local, national and global issue.
“The Scottish Parliament is now scrutinising the Plan, and this is your chance to get involved to tell us what you think should be done to improve it.
“Do the proposals make clear the changes we all need to make in our lives to help Scotland reach its net zero targets? Is the approach being taken transparent, so that we can see where progress is being made? Is there enough detail?
“Only credible and transparent policies, with public buy-in, will drive the emissions reductions needed to secure Scotland’s success.”
Parliamentary committees will focus on areas such as buildings (residential and public); transport; waste; energy supply; business and industrial processes; agriculture; land use & land use change; forestry; nature & biodiversity, and marine.
Committees are now set to engage in formal evidence sessions, community outreach and visits, before reporting on their findings by 5 March 2026.
Thereafter, the Scottish Government has committed to publishing its final Climate Change Plan in advance of the dissolution of Parliament for the 2026 election.
One year on from the introduction of the Worker Protection Act, new research from online training provider High Speed Training has revealed that about one in five UK adults in Scotland say they are concerned about sexual harassment in the workplace, with about one in 12 (8%) reporting they had witnessed behaviour they considered to be sexual harassment in a workplace.
The Worker Protection Act (2023) which came into force in October 2024, introduced a legal duty for employers to take “reasonable steps” to prevent the sexual harassment of their employees.
The legislation put the onus on the employer – rather than the employee – to take action against inappropriate conduct which would fall under the category of sexual harassment in the workplace. It also gives workers more protection, rights and support should they experience any kind of sexual harassment when at work.
However, a YouGov survey from High Speed Training found that only 61% of workers in Scotland are confident that employers have taken these reasonable steps.
The survey also found that 8% of workers across Scotland say they have witnessed behaviour at workplaces in the last 12 months that they would consider to be sexual harassment, as well as finding that only 65% of workers feel confident that workplaces would handle a report of sexual harassment effectively.
Dr Richard Anderson, Head of Learning and Development at High Speed Training, said: “The term ‘sexual harassment’ refers to any sort of unwanted conduct of a sexual nature that has this effect.
“Anybody who experiences unwanted sexual behaviour, whether this be verbal, physical or digital, is a victim of sexual harassment.”
Examples of this behaviour are:
Comments, ‘jokes’, inappropriate remarks, emails, messages or questions of a sexual nature.
Sexual propositions or bribes, such as offering to help a colleague at work in return for going out for a drink or on a date.
Posting inappropriate comments on social media, such as commenting about a person’s appearance in a picture they’ve shared.
Inappropriate hand gestures or facial expressions.
Unwanted physical contact, including touching, hugging, unwelcome sexual advances and all forms of sexual assault.
High Speed Training’s research also found stark differences across generational demographics when looking at the nation as a whole.
Respondents currently working fromacross the UK aged 18-24 were more than three times as likely to say they have witnessed behaviour they considered to be sexual harassment at a workplace as those aged 45+ (24% vs 7%).
The figures suggest that younger employees are either being disproportionately exposed to or witnessing sexual harassment, or, as employees joining the workforce in a post #MeToo era, are more adept at recognising inappropriate behaviour.
Younger workers may also be more likely to occupy more junior or entry-level positions, which could make them more vulnerable to inappropriate conduct, and feel less empowered to challenge it.
Dr Anderson said: “A year on from the introduction of the new Worker Protection Act, our research has shown that there is still lots of work to be done.
“If we expand our findings to the whole of the UK workforce, which the ONS estimated to be 36.9 million people in December 2024, these findings would suggest that nearly 3 million people have witnessed sexual harassment in the workplace in the last 12 months, underlining the need for the new legislation, and showing just how much work employers need to do to ensure that everyone feels safe and supported at work.
“A strong workplace culture, one that promotes transparency, trust and inclusivity, is built by visible and consistent action and investment.
“For organisations looking to demonstrate their commitment, comprehensivesexual harassment training training is a great place to start.”
Thousands of UK businesses are already recognising this. Since the WPA came into force 12 months ago, High Speed Training has seen more than a 1,500% increase in companies enrolling teams on its Sexual Harassment Training for employees course, with a 2,234% increase in uptake of their Sexual Harassment Training for managers course.
Housing Secretary Màiri McAllan has confirmed the Scottish Government will not introduce a Heat in Buildings Bill in the current session of the Scottish Parliament, following delays to the UK Government’s Warm Homes Plan and lack of clarity on cost of energy bills.
In a statement, Ms McAllan said she would not ask the Scottish Parliament to consider such an important Bill now with little time and without a full understanding of the UK policy context, due to several key policy levers being reserved and decisions delayed.
Ms McAllan reaffirmed the Scottish Government’s commitment to decarbonising buildings in Scotland by 2045 in a way that does not exacerbate fuel poverty, and announced additional grant support for homeowners of up to £7,500 (or up to £9,000 for households in island and remote rural areas) from December to incentivise connections to local heat networks.
The Housing Secretary also said the government intended to bring forward legislation as early as possible in the next parliamentary session, subject to the outcome of the 2026 election and clarity on the UK Government position.
A draft Buildings (Heating and Energy Performance) and Heat Networks (Scotland) Bill has been published to give clarity to households and investors on future plans for legislation.
Màiri McAllan said: “Decarbonising how we heat our homes and buildings is a vital step in our efforts to tackle climate change. We must take action and in a way that does not worsen fuel poverty. The Scottish Government is fully committed to this by 2045, as set out in our draft Climate Change Plan.
“We have always been clear that our plans depend on essential clarity from the UK Government, but repeated delays to their Warm Homes Plan have left key questions unanswered – particularly on how they intend to make the switch to clean heat more affordable by reducing the cost of electricity.
“This is critical in ensuring decarbonising homes does not exacerbate fuel poverty at a time of spiralling energy bills.
“Ultimately, it is perverse that Scottish Ministers should be in the dark about plans related to Scotland’s own energy resources. If we had all the powers of a normal country – including over our own energy resources and market – we would not be in this position.
“In the meantime, we are determined to continue to press ahead with our existing decarbonisation agenda including developing heat networks as a significant investment proposition and viable heating source for households. Therefore, I am pleased to confirm the extension of grant funding for households to connect to local district heat networks, bringing it into line with grants available to install heat pumps.”
Since 2020, the Scottish Government has allocated £1.67 billion of funding through its Heat in Buildings schemes, including over £840 million for energy efficiency and clean heat projects.
Since 2020, the Scottish Government has supported an average of 15,000 households a year to decarbonise, including those in or at risk of fuel poverty and since the launch of Warmer Homes Scotland have helped over 47,000 households across Scotland to live in warmer homes that are more affordable to heat.
A heat decarbonisation target to replace direct emission heating systems in all Scottish buildings, as far as reasonably practicable, by 2045;
A regulation-making power to set a Minimum Energy Performance Standard for owner-occupied and non-domestic buildings that use direct emission heating systems; and
Provisions to encourage the development of heat networks, including a regulation-making power to require qualifying buildings within a heat network zone to connect to the heat network, or decarbonise their heating system
Grant support will be introduced for homeowners to enable connections to heat networks through the Home Energy Scotland Grant and Loan scheme.
Up to £7,500 of grant funding will now be available to homeowners, in addition to the optional £7,500 interest free loan. For those that qualify for island/remote rural uplift through the scheme, an additional £1,500 of grant funding will be available.
Gillian Campbell, Co-director at the Existing Homes Alliance, said: “This critical legislation has the potential to transform lives and communities across Scotland, cutting fuel poverty and climate emissions, whilst stimulating economic growth and job creation.
“But, creating good legislation requires proper scrutiny. As a result of repeated delays, we’re now at the stage where Parliament doesn’t have sufficient time to properly scrutinise and strengthen the Bill.
“This Bill, as currently drafted, will not drive the scale of activity needed to upgrade Scotland’s homes and meet climate change and fuel poverty targets.
“The next Scottish Government must act quickly to put the right legislation in place, and ensure time for good quality debate. In our manifesto for Holyrood 2026, we’re calling on the next Scottish Government to deliver a clear route map to warm, healthy homes by 2045. We need early sight of effective regulations, along with multi-year funding for fuel poverty and energy efficiency programmes.
“The next government must break down the barriers that prevent households, especially those in or at risk of fuel poverty, from accessing energy efficiency upgrades and clean heating. That means fully funding support for vulnerable households and providing fair financial incentives so that everyone can make the switch to clean heating with confidence
“It’s been over four years since the Heat in Buildings Strategy was published – it’s high time we started seeing action or Scotland is going to be left behind. It’s not too late – if the next Scottish Government moves swiftly to put the right building blocks in place, all of Scotland can benefit from a just transition to energy efficient homes and clean heating that leaves no-one behind and is affordable to all.”
Government takes a major step forward with Bill to set up Great British Railways, owned by the public, for the public.
GBR will put passengers before profits with a strengthened passenger watchdog and ultimately a one-stop-shop app for simpler ticketing and customer services.
Measures unveiled to improve rail accessibility, including expanding disabled persons railcard eligibility, rolling out more Welcome Points.
Landmark legislation that will transform Britain’s railways was introduced yesterday (5 November), paving the way for a simpler, more reliable network which puts passengers before profits.
The Railways Bill will create Great British Railways (GBR) – a new publicly owned company which will bring together the management of passenger services and rail infrastructure.
GBR will be accountable to passengers, freight customers and taxpayers and will drive a relentless focus on responding to their needs. Responsible for co-ordinating the whole network: from track and train, to cost and revenue – GBR will deliver lasting change.
GBR, which will be headquartered in Derby, will create a simpler, more unified railway that delivers easier journeys and offers better value for money. This will include a new one-stop-shop app where passengers can check train times and book tickets.
The Railways Bill will also establish a strengthened passenger watchdog which will be a powerful new voice to investigate poor service and advocate for improvements.
Rail reform is a cornerstone of the Government’s Plan for Change, with GBR working hand in hand with the Government’s missions to drive growth and opportunity, such as housebuilding, creating jobs and boosting productivity.
Transport Secretary Heidi Alexander said: “Britain deserves a railway that is fit for the future – one that rebuilds the trust of its passengers, regenerates its communities and restores reliability and value for money.
“The introduction of this legislation is a major step towards a rail network that supports Britain’s businesses and delivers for the travelling public – paving the way for economic growth and access to opportunity across the country.”
Passengers are currently at the mercy of a complex rail system of over 17 different organisations, resulting in complex fares, delayed upgrades, disjointed timetables, and an industry with no single authority in charge.
The Railways Bill builds on the Government’s public ownership programme, which is already driving improved services. Southeastern and LNER are among the top five operators nationally for lowest cancellation rates.
South Western Railway has more than tripled the number of new trains in service since entering public ownership, offering more comfortable journeys, and passengers can now use tickets across publicly owned operators during cancellations – at no extra cost.
Major changes in the Bill include:
A strengthened Passenger Watchdog which will act as passengers’ champion and create a better, more inclusive railway for all. The watchdog will have powers to investigate poor service and demand improvements, as well as ensuring passengers have a clear and accessible service to escalate their complaints.
Fare and Ticketing reform – the Railways Bill will empower GBR to bring fares and ticketing into the 21st century. Passengers will ultimately be able to purchase tickets through a new GBR website and app, replacing 14 existing operator ticketing platforms. Tickets will be available to purchase at station ticket offices, via ticket vending machines and onboard trains, to ensure all passengers can purchase a ticket with ease and travel with confidence. GBR will also build on the expansion of successful Pay As You Go and fares trials, making travel more flexible and simpler.
Better business planning – the Railways Bill will place a duty on GBR to grow rail freight, meaning freight operators will benefit from a longer-term strategic approach to planning, including a new capacity allocation and timetabling process. This longer-term certainty for businesses will give critical stability to the railway’s supply chain and increase investor confidence and support the growth of the sector.
Localised decision making – the Railways Bill will give the Devolved Governments and England’s mayors a new role and a bigger say in how the railway is run in their patch to improve local connectivity.
We're building a railway that's fit for Britain's future – owned by the public, for the public.
Today, we're introducing the Railways Bill into @HouseofCommons to set up Great British Railways and deliver a simpler, more reliable rail network. pic.twitter.com/5udm0q6nra
In a further move to improve services for all passengers, the UK Government will today publish the Accessibility Roadmap, which provides immediate actions to improve services for disabled passengers in the lead up to GBR’s establishment.
Commitments in the Roadmap include expanded eligibility criteria for the Disabled Persons Railcard, planning for the wider rollout of Welcome Points across the network, more consistent training for staff, and improvements on installing and maintaining key infrastructure, like lifts and escalators so that people can travel with confidence.
The Cabinet Secretary for Transport and North Wales, Ken Skates said: “I very much welcome the introduction of the UK Railways Bill which will improve rail services and deliver a more integrated, accountable, and passenger-focused railway across the UK.
“It is also a significant step forward in our collaborative approach to rail reform, and I am confident that our continued joint working with the UK Government will ensure the delivery of a modern, integrated railway that works for passengers in Wales and throughout the United Kingdom.”
Andy Burnham, Mayor of Greater Manchester, said: “The introduction of the Railways Bill to Parliament marks a pivotal moment for rail reform across the country.
“This is a once-in-a-generation opportunity to make trains more reliable and tickets easier to use, with clearer accountability for passengers and greater confidence in every journey.
“In Greater Manchester, we’re already making progress by working with the government and the rail industry to connect trains, buses, trams, and cycling routes as part of the next phase of the Bee Network.
“We’ll keep working closely with partners to shape the new legislation, ensuring Mayors and city regions have a key statutory role in joining up the railways in their areas, making them work for everyone and unlocking rail as an engine of growth across the country.”
Ben Plowden, Chief Executive of Campaign for Better Transport, said: “An accessible, affordable and reliable rail network integrated with the wider transport system is key to delivering sustainable economic growth and improving regional productivity.
“Today marks another important step on the road to realising this vision and delivering a railway that works for passengers, freight operators and the country as a whole.
“We look forward to working with the Government, MPs and the rail industry over the coming months to make sure this Bill provides the right foundation for a reformed railway.”
Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce said: “Businesses welcome plans for a more joined up rail system which gives regions a stronger voice in shaping services.
“An efficient rail network is crucial to unlock opportunities for investment, jobs and growth across the country.
“Great British Rail must deliver the certainty and connectivity that businesses are desperate for – with the needs of passengers and freight customers central to future decision making.”
TRANSPORT SECRETARY HEIDI ALEXANDER’s STATEMENT TO PARLIAMENT
Today (5 November 2025) I have published our consultation response: A Railway Fit for Britain’s Future and introduced the Railways Bill to Parliament.
Up and down the country and across all political parties, the consensus is clear: our railways need urgent reform. Passengers feel abandoned – forced to treat delays, cancellations and poor value for money as unavoidable facts of daily life. Meanwhile, a broken, outdated model is holding the railway back, stopping it from unlocking the growth our country needs and delivering the efficiency taxpayers rightly expect.
The need for change was laid bare in the thousands of responses to our recent consultation. The British public were unequivocal: we need an affordable, reliable railway that passengers can count on and that makes the most of every taxpayer pound invested. One that makes education, healthcare, public services and even just the support of family and friends more accessible to those who need them. A railway that backs our businesses and helps our communities thrive. A railway fit for Britain’s future.
So today I am bringing forward legislation that will pave the way for the biggest transformation of Britain’s railways in 30 years. Informed by the consultation feedback, the Railways Bill will give us the tools we need to create Great British Railways (GBR) – a new, publicly owned company to oversee the management of track and train.
Today’s passengers are at the mercy of a complex system of poorly coordinated organisations, all incentivised to look inward and outsource blame. GBR will put an end to this by bringing together the work of 17 different organisations – from train operators to public bodies, government, and the regulator – eliminating unnecessary duplication and creating a single organisation responsible for operating, maintaining and improving our railways.
Unencumbered by the bureaucracy and perverse incentives of the old system, GBR will have the tools and authority it needs to make the railway deliver for passengers, freight and taxpayers – and to be held unambiguously accountable for doing so. It will be the ‘directing mind’ for the network, responsible for improving performance and taking long-term decisions across the whole system to unlock growth, decarbonise transport, enable the construction of new homes and support a thriving supply chain. GBR will be underpinned by a clear set of statutory duties – including those relating to passengers and accessibility, rail freight and social and economic benefits – as well as an overarching strategic direction set by the government. This approach will enable GBR to make decisions with a whole-system view, optimising network use and utilising opportunities such as open access to make the most of constrained capacity.
GBR will create a new culture that prioritises passengers and their experience. It will simplify fares and ticketing, setting more transparent fares in line with parameters set by ministers. It will consolidate the ticket retailing operations of 14 separate train companies – each with their own websites and apps – into a single, straightforward GBR ticketing platform. A new GBR app and website will make it easy to purchase tickets, check train times, and access a range of support all in one place. Together, this will make it easier for passengers to understand the fares system, to know they are buying the right ticket and to be confident they are getting the best value.
The bill will pave the way for creating a powerful voice for passengers, with a passenger watchdog responsible for setting tough standards and, where these are not met, investigating issues and resolving disputes. It will protect and advocate for all passengers’ interests and rights, offer advice and independently monitor passenger experience, reporting on its findings publicly and transparently.
GBR will work in partnership with devolved leaders to create a national railway that serves local needs. Through a new statutory role for devolved leaders, national and local strategies will be factored into GBR decision-making ensuring communities across Britain feel the benefits of our reforms. England’s mayors will have a greater say in how the railways will run, enabling genuine local influence and laying the foundations for integrated public transport that meets the needs of the communities it serves.
Devolved ministers in Scotland and Wales will also have an enhanced role, with bespoke arrangements to ensure GBR is able to deliver an integrated national network across Great Britain.
I will publish a joint memorandum of understanding with Welsh ministers setting out how our continued collaboration will drive improvements to our railways across Wales and Borders.
Scottish ministers have a similarly strong settlement reflecting their role as funder of the railway, including powers of direction and guidance over GBR. This will be set out in a joint memorandum of understanding that will outline how GBR will work with Scottish ministers to maximise local opportunities and deliver for communities.
Whilst this bill will unlock the most significant set of reforms our railway has seen in a generation, we are not waiting for the creation of GBR to drive improvements across the rail network.
We have accelerated the roll out of pay-as-you-go and we are ushering in a new era of transparency with latest performance data now available at over 1,700 stations. We recognise that disabled passengers’ experience on today’s railway too often falls short. That is why today I have also published an Accessibility roadmap: a transitional plan focused on delivering immediate improvements while laying the foundations for longer-term transformation led by GBR.
This bill enters Parliament 200 years on from the birth of the modern railway. The first passenger train between Shildon, Darlington and Stockton in 1825 marked the start of a technological revolution that would change the course of world history and trigger an explosion of growth and prosperity across the country.
As this government continues its mission to deliver a decade of national renewal, the plans I am setting out today will ensure the railway is fit to drive economic growth in the 21st century as it has done in the past.