New maximum wrongful termination award: 36× relevant sum (from 6 Oct 2026)
Section 34 of the Housing (Scotland) Act 2025 (SSI 2026/115) raises the wrongful termination order maximum from the previous level to 36× the relevant sum (the higher of monthly rent or £840). For a property at £1,000/month: maximum award £36,000. For a property at £1,500/month: maximum £54,000. Applies to tenancies ending on or after 6 October 2026.
What is a wrongful termination order?
The Private Housing (Tenancies) (Scotland) Act 2016 gives the First-tier Tribunal (Housing and Property Chamber) power to make a wrongful termination order against a landlord who ends a PRT by fraud, misrepresentation, or bad faith. The order requires the landlord to pay compensation to the former tenant. Section 34 of the Housing (Scotland) Act 2025 significantly increases the financial exposure by setting a new minimum and maximum award range from 6 October 2026.
The relevant sum, calculation table
| Monthly rent | Relevant sum | Minimum award (3×) | Maximum award (36×) |
|---|---|---|---|
| £500/month | £840 (floor applies) | £2,520 | £30,240 |
| £600/month | £840 (floor applies) | £2,520 | £30,240 |
| £840/month | £840 (floor applies) | £2,520 | £30,240 |
| £1,000/month | £1,000 | £3,000 | £36,000 |
| £1,250/month | £1,250 | £3,750 | £45,000 |
| £1,500/month | £1,500 | £4,500 | £54,000 |
| £2,000/month | £2,000 | £6,000 | £72,000 |
What counts as wrongful termination?
- Fraudulent use of an intention-based ground: Serving a Notice to Leave on Ground 1 (landlord intends to sell) or Ground 2 (landlord or family member requires the property) without genuinely intending to do so, and then reletting the property after the tenant vacates
- Non-delivery of stated plans: Even if the landlord genuinely intended to sell or redevelop at the time of serving the Notice to Leave, reletting the property without a real change of circumstances that makes sale impossible is likely to be treated as wrongful termination
- Fraudulent refurbishment ground: Citing Ground 5 (substantial refurbishment) without genuine plans to carry out the works, or carrying out only cosmetic changes and then reletting
- Harassment and illegal eviction: Causing a tenant to leave through harassment, unlawful entry, removal of services, or threats. This constitutes wrongful termination even if no Notice to Leave was served
- Invalid Notice to Leave: Serving a Notice to Leave that is defective in a material respect (wrong notice period, incorrect ground, failure to give required information) and the tenant vacates in reliance on it
How the Tribunal determines the amount
The Tribunal has discretion to set the award anywhere within the statutory range (3× to 36× relevant sum from 6 October 2026). Factors the Tribunal is likely to consider:
- Severity of the wrongful conduct: Deliberate fraud is likely to attract a higher award than a negligent mistake. A pattern of misusing grounds will attract the maximum
- Financial impact on the tenant: If the tenant suffered significant losses; removal costs, higher rent at new accommodation, loss of established home, the award is likely to be towards the higher end
- The landlord's awareness of their legal obligations: A landlord who knew their stated ground was false is treated more seriously than one who misunderstood the law
- Whether the landlord remedied the situation: Prompt offers of compensation or reinstatement may reduce the award
- Vulnerability of the tenant: If the tenant was in a vulnerable position (disability, old age, family with young children), the Tribunal is likely to award a higher sum
Key risks to avoid
- Do not relet within 12 months of termination on an intention ground: Reletting within 12 months of a Ground 1 or Ground 2 termination is strong evidence of wrongful termination unless the landlord can show a genuine change of circumstances
- Always document your intention at the time: A contemporaneous paper trail (estate agent instructions, solicitor correspondence, building quotes) is the primary defence against a wrongful termination allegation
- Do not use repossession grounds as a pretext: The PRT's 18 grounds are exhaustive. Using a valid-sounding ground (sale, occupation) when the real reason is to relet at a higher rent or to remove a troublesome tenant is wrongful termination
- Take advice before acting on changed plans: If you intended to sell but circumstances change, seek legal advice before reletting. Documenting a genuine change and a reasonable period between termination and reletting is the key evidence
- Consider liability insurance: Given the new maximum of 36× the relevant sum, landlords relying on intention-based grounds should consider whether their landlord liability insurance covers wrongful termination claims
LetSafe Scotland documents
- Notice to Leave (LS-S-011): The statutory Notice to Leave for Scotland, correctly citing the applicable PRT ground with guidance notes on evidence and notice periods for all 18 grounds. Using the correct form and correct ground is the first line of defence against a wrongful termination challenge
- Private Residential Tenancy Agreement (LS-S-001): Scotland-compliant PRT agreement; where a new tenancy is being granted after a previous PRT ended, this document creates a fresh PRT that clearly distinguishes it from the previous letting