Rent controls haven’t worked in Scotland – Hamptons

Scottish landlords are increasing rents at a faster pace than anywhere else in Great Britain because of rent controls reshaping the market, Hamptons reveals.

Its analysis suggests the policy designed to restrain price growth has instead encouraged annual increases.

Drawing on data from across the Connells group, it found that 67% of Scottish landlords with the option to raise the charge have done so this year.

That’s the highest proportion of any region and well above the Great Britain figure of 58%.

Rent controls don’t work

The firm’s lead analyst, David Fell, said: “The evidence from Scotland suggests that rent controls rarely work as intended.

“At best, they delay rent increases; at worst, they set a new benchmark where landlords feel compelled to increase their rents every year by the maximum allowed.

“Faced with uncertainty over future rules, many landlords choose to raise rents little and often rather than risk falling far below market levels.”

He added: “While the Renters’ Rights Act will give tenants more time and power to challenge rents at tribunal, the evidence suggests caps are only a sticking plaster.

“Longer term, the only way of making rents more affordable is to increase the number of homes available to rent and boost competition among landlords for tenants.”

Rents rise despite cap

Hamptons also says the rent rise pattern is not new as Scottish landlords were more likely to raise the payment in both 2024 and 2025.

That was despite rent caps that initially froze increases at zero, before allowing rises of up to 3%.

Those temporary controls set during the pandemic have left Scotland’s tenants more exposed to annual adjustments than renters elsewhere.

The firm argues that attempts to artificially limit the cost in other parts of Great Britain could generate similar long-term consequences.

Annual rent rises

Under the current Scottish rules, any rent rise must be no higher than the lowest of the open market level.

Whether that’s the landlord’s proposal, or a permitted rate where the tenant is already paying below market value.

This framework has prompted many landlords to introduce small yearly changes to stop rents drifting too far behind the wider market.

When Scottish landlords did raise the rent, the average uplift was 10.1%, lower than the 12.2% Great Britain averaged.

Rent rises accelerate

The trend has accelerated since June 2025 as newly agreed rents in Scotland climbed 2.5% over the past year, making it one of only two regions where prices increased by more than 2%.

Since the 3% cap was relaxed in April 2024, the typical rent on a new let has jumped 7.3%, second only to the North East of England.

Over five years, newly agreed Scottish rents are up 36%, higher than the 32% rise across Great Britain.

Renewals tell a similar story, with the cost of extended tenancies rising 32% compared with 295 nationwide.

Rents are falling

Hamptons says that across Great Britain, for the third month running, rents on newly let homes have fallen on an annual basis.

In the 12 months to October, the typical monthly rent slipped 0.5% to £1,399.

London has seen the steepest declines with inner London rents now at £2,795, down £135 from last year.

Outer London has followed the same downward drift since summer.

Elsewhere, the South East saw no annual change, the South West recorded 0.3% growth, and the East of England posted a 0.8% rise.

Analysts suggest other southern regions may soon follow London’s downward path.

Tenant demand eases

Tenant demand has eased too as there were 12% fewer tenants searching for a home in October compared with a year earlier, while supply rose 8%.

However, contract renewals remain robust with rents for tenants staying put are up 4% year on year, reaching a record £1,310.

Even in London, where new lets are falling, renewal costs rose 3.2%.