Mid-tenancy rent controls scrapped from tomorrow

From April 1, temporary rent controls on existing tenancies in Scotland will be lifted, allowing landlords to raise rents to market levels after two years of restrictions. These measures, introduced in 2022 under the Cost of Living (Tenant Protection) Scotland Act, initially froze rents and later imposed a 3% cap (with exceptions for a 6% rise).

The cap posed challenges for landlords due to rising mortgage rates and increased taxes, leading to reduced investments and some exiting the market. With the cap’s removal, landlords can see improved returns, though they must give tenants three months’ notice for rent increases and may face formal challenges if rises exceed market rates.

John Loudon from Auction House Scotland expects increased activity in the rental market. While the cap may be replaced by permanent controls in 2027, landlords have a window to invest and strategize. The lifting of the cap is seen as a positive development for the private rental sector.