Scotland’s rent controls will expire on March 31 2025, meaning landlords will be able to set rents with no restriction until the Housing (Scotland) Bill comes into effect in 2027.
Rents were frozen in 2022, before being subject to a cap between April 2023 and April 2025.
Paul MacLennan, Scottish housing minister, told the Herald: “The temporary changes to rent adjudication were in place to support the transition away from the short-term rent cap that was in place under the Cost-of-Living Act.
“They were in place for year to manage the risk of very steep increases in rents for tenants if there was a return to market rent in a single step and will come to an end on March 31, 2025.”
David J Alexander, chief executive of brokerage DJ Alexander Scotland Ltd, is relieved the controls are ending as planned.
He said: “Everybody involved in the private rented sector (PRS) has been frustrated at the uncertainty of the Scottish governments’ policy on rent controls.
“But this announcement, coupled with a proposed consultation including consideration of how new housing built specifically for private rent – including in mid-market rent and other purpose-built private rented accommodation – should be treated is to be welcomed”
“This should encourage a return of investment in the sector and the potential for a rapid increase in the number of new homes being built for the private rented sector.
“This is a positive development for landlords, investors, and tenants who will all benefit from an increase in the volume of properties being brought into the market.”
Alexander added: “This is a very positive development and is a clear sign that the Scottish government is listening to the private rented sector and going some way to encourage growth to ensure landlords and investors can be more certain of the viability of their investment and tenants can be comforted at the prospect of a substantial increase in the supply of homes to rent.”
The Housing (Scotland) Bill would see rents capped at inflation plus 1% in rent control zones, up to a cap of 6%.
Tenants’ union Living Rent criticised the end of the rent cap measures.
Ruth Gilbert, national campaigns spokesperson for Living Rent, said: “As soon as these measures end on March 31, tenants are going to be hit by a tidal wave of rent increases as landlords cash in after two years of emergency protections.
“The rent controls and protections in the housing bill will only come into effect in 2027. From now until then, tenants are faced with two years of completely uncapped rents. Landlords increasing rents, which will decimate our cities, force people out of their homes and further exacerbate both homelessness and poverty.”
