The Scottish government will scrap its temporary rent control legislation on 31st March, in a move which promises to boost landlords’ confidence.  

The controls were in place to manage the risk of very steep rent increases following the transition away from the short-term rent cap under the Cost of Living Act. They allow most tenants to challenge a rent increase, with a tapering formula being applied which can restrict the level of rent increase.

It means that for any rent increase notices issued on/after 1st April, an appeal to the rent officer or tribunal by the tenant would result in the rent being set at the open market rental value, even if that is higher than what the landlord has proposed.

The government has also announced a proposed consultation that would consider new housing built specifically for private rent – including in mid-market rent and other purpose-built private rented accommodation.

Comfort

Letting agent David J Alexander, CEO of DJ Alexander Scotland, welcomes the announcements. He believes the fact open market rent setting can return with no rent cap restriction - at least until the looming Housing (Scotland) Bill comes into effect in 2027 - will be a comfort for landlords and investors.

“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,” says Alexander.

Housing minister Paul McLennan (main image) told The Herald: “Raising awareness of the strong existing rights tenants have is critical and we will be launching a Renters Rights Campaign later this month that will support tenants to understand their rights, how to use them and where to seek further advice and support.”