Rent rises in Scotland after rent control measures end

An industry body is warning over rent spikes in Scotland due to the end of rent control measures.

The news comes after rules that allowed tenants to challenge rent hikes and capped increases at 12% if they appealed to a rent officer were ended this week.

However, Propertymark members operating in Scotland warn that this is likely to result in increased rents across the market as landlords seek to make up losses incurred as costs have inflated.

This follows Property118’s story yesterday about Generation Rent’s claim that the number of tenants challenging rent rises in Scotland rocketed when a temporary rent cap was in place rocketed.

Rents to rise and stalled investment

Propertymark says rent controls have caused chaos across the housing sector in Scotland and instead urge for investment rather than regulation.

Timothy Douglas, head of policy and campaigns at Propertymark, said: “Letting agents and their landlords across Scotland will welcome the end of the rent adjudication measures implemented by the Scottish government. Importantly, there will be no immediate replacement for temporary rent controls, and it will be back to standard rules for rent adjudication from 1 April 2025.

“Restrictive measures on rent control have caused rents to rise and stalled investment across Scotland. It’s now vital that policy makers learn the lessons and do not repeat the mistakes of restricting rents that put up costs for tenants over the long run.”

Scottish Housing Bill could have serious consequences

The Scottish Housing Bill is currently making its way through the Scottish Parliament and is expected to receive Royal Assent later in 2025 before being enacted in 2027.

The bill will introduce a requirement for local authorities to assess rent levels and increases in their area. They will then be required to submit a report to Scottish Ministers, who will use this information to determine whether an area should be designated as a rent control zone.

Once a cap is in place, rent increases will be limited to CPI plus 1%, up to a maximum of 6%.

Scottish Conservative shadow cabinet secretary for housing, Meghan Gallacher MSP, previously told Property118 that the Scottish Housing Bill is an attack on the private rented sector and will lead to landlords selling up.

Propertymark warns the bill could have serious consequences and says flexibility is needed to account for inflation and rising costs of energy efficiency upgrades, as they argue large parts of the private rented sector could fall into disrepair as landlords struggle to cover their costs.