SCHT Grant Conditions: Owners Associations

Tenements are defined in Scottish law as ‘buildings with 2 or more flats that are divided horizontally’. This includes properties such as villas which have subsequently been divided to create flats. In 2018, a Scottish Parliamentary Working Group was created ‘with the purpose of establishing solutions to aid, assist and compel owners of tenement properties to maintain their buildings’ and in 2019 it produced a report which set out 3 recommendations for the reform of the Tenement Act:

• The introduction of a requirement for tenements to be subject to a whole-building condition inspection every five years.
• The establishment of compulsory owners’ associations.
• The establishment of building reserve funds.

In May this year, the Scottish Law Commission published its Discussion Paper on Tenement Law: Compulsory Owners’ Associations. The Scottish Law Commission is currently reviewing the above recommendations and will make proposals based on these for appropriate legislation. The consultation on mandatory Owner’s Associations will close on 1^st August and the results will be published with a draft Bill in 2026. To have your say, respond to the consultation Scottish Law Commission: Current consultations.

Reform of the Tenement Act is a crucial step in ensuring our housing stock is kept in a good state of repair. Tenements and traditional buildings make up a great deal of our housing stock in Scotland, and it is often difficult to maintain these multiple-ownership buildings if all owners are not in contact or in agreement with each other.

What is an Owner’s Association?

Under One Roof defines an Owner’s Association as:

a formal arrangement between the owners of your building. It arranges regular meetings to discuss how your building will be managed and maintained. By ‘formal’ we mean having a constitution, an agreed set of rules and procedures.

Having an Owner’s Association should allow owners in tenements to make decisions about the repair and maintenance of their building more easily and efficiently, encouraging positive communication between owners and ensuring that everyone is aware of their shared and individual responsibilities.

Traditional Building Repair Grant Conditions

So, what does this mean for owners of tenement properties in Scotland? In 2026, new legislation will be introduced making Owner’s Associations mandatory. Under One Roof has lots of information about Owner’s Associations on its website, including a great step-by-step guide on how to set one up and a model constitution you can download.

As a result of this approaching change in legislation, we are also updating our Grant Conditions as follows:

Buildings with 3 or more owners must have an Owner’s Association with a constitution and bank account at point of Grant Application. The constitution should be submitted alongside your Grant Application. If you do not have an Owner’s Association at point of Grant Application you cannot apply for a Traditional Building Repair Grant.

Further Information

For more information about our Traditional Building Repair Grants visit:

Traditional Building Repair Grant

For more information on the Tenement Act and its reform:

• Reforming tenement law | Law Society of Scotland
• Compulsory owners’ associations: Scottish Law Commission release discussion paper - Under One Roof
• Tenements (Scotland) Act 2004
• Tenement law: compulsory owners’ associations