In December 2025, the Scottish Law Commission (SLC) published its latest report on tenement law. Central to the report is a significant recommendation: the introduction of compulsory Owners’ Associations for tenement buildings across Scotland.
Why tenement reform is needed
Tenement buildings form a considerable part of both commercial and residential properties. There are around 895,000 tenement properties in Scotland, which makes up around 37% of all Scottish housing.
Approximately a third of Scottish tenements were built before 1919, another third between 1919 and 1982 and the remainder after 1982. Older tenements are increasingly falling into disrepair and housing condition reports show a steady decline in the overall state of Scotland's housing over the past 10 to 15 years.
One of the major reasons for this decline is the shared responsibility model built into tenement living. Unlike detached or semi-detached homes, tenement owners rely on one another for decisions about maintenance, repairs and long-term investment. Unfortunately, the current legal framework does little to encourage collective action. The result is inevitable: delayed repairs and buildings falling into critical condition.
Growing political and environmental pressure
In recent years, tenement disrepair has attracted increasing political attention. Beyond structural safety, climate targets have pushed policymakers to recognise that poorly maintained buildings are a threat to energy efficiency. The SLC’s recommendations aim to ensure that homeowners take a more proactive and pre-emptive approach to maintaining their buildings, which is an essential step if Scotland hopes to meet its wider housing and environmental goals.
Ultimately, a stronger legal framework is needed to ensure that owners take responsibility not just for their own flat, but for the long-term upkeep of the building as a whole.
Background to the report
This reform journey began in March 2018 when a Scottish Parliament Working Group was convened to examine how to tackle legal, technical and cultural barriers to tenement maintenance. The Group brought together MSPs from all parties alongside key stakeholders including RICS, the Scottish Association of Landlords, the Property Managers Association Scotland and representatives from local authorities.
Their Final Recommendations Report, published in June 2019, proposed three major reforms:
- Mandatory five-year building inspections
- Mandatory Owners’ Associations
- A building reserve fund
The December 2025 SLC report provides detailed recommendations for implementing the second proposal while considering how these might interact with the first and third recommendations.
What were the recommendations?
At its core, the report recommends that every tenement building in Scotland must have an Owners’ Association made up of all the flat owners.
This association would:
- Have its own legal personality, meaning it can hold funds and enter into contracts
- Be responsible for the maintenance and repair of the building’s common parts
- Manage a reserve fund to cover future repairs
- Make collective decisions through agreed processes and voting thresholds
The report is detailed, with 12 chapters and 95 recommendations. It covers everything from default decision making rules to the powers and duties of association managers, financial administration, liability for costs, enforcement mechanisms and the relationship between these new rules and existing title burdens.
One key provision is the role of the association manager. This may be a homeowner or a professional property manager. Given the burden of responsibilities, it is expected that many associations will choose professional management over self-management. The report also includes measures to prevent poor application of the rules, such as enabling the appointment of a remedial manager if the association fails in its duties.
Importantly, while the report sets out default rules, many of these can be varied through real burdens contained in a building’s title deeds.
Next steps?
With an election due in May 2026, it is unlikely that the Scottish Government will take immediate legislative action. There is no guarantee the recommendations will be adopted however this work was commissioned by government and the need for reform has been widely acknowledged.
Reactions so far have been mainly positive. Housing charities and sustainability groups welcomed the report, highlighting how Owners’ Associations could create the communication structures and governance needed for overdue repairs and essential energy efficiency upgrades.
A step toward long-term tenement sustainability
Mandatory Owners’ Associations will not solve every problem facing Scotland’s tenements however they are hopefully a step in the right direction. A clearer legal structure should empower owners to organise repairs, commission inspections and plan long-term maintenance, helping preserve and improve the safety, quality and sustainability of these buildings for generations to come.
For now, we await the government’s response. What is clear is that tenement reform is needed and the SLC’s recommendations offer a practical, forward-looking framework for change.
This article was co-authored by Edie Mullen, Trainee Solicitor in our Real Estate team.
