New research has shown a huge increase in tenants challenging rent increases in Scotland since an updated procedure was introduced on 1st April.

Rent Service Scotland (RSS), the body which oversees rent setting in the country, reports that 938 tenants have applied in the last five months compared with the 20-30 applications per year it received before rent controls were introduced in the Cost-of-Living Act.

Landlords are free to raise rents following the end of the control period in March, provided they give 12 months’ notice, but tenants can contest it with RSS. The average turnaround time from point of application to the point of the decision being issued is four to six weeks.

Of the 614 decisions made, 86 applications have been withdrawn (usually because the parties agreed on a figure) with only about 50% resulting in RSS setting the rent at the figure the landlord had originally proposed.

A large number (210) were rejected because they weren’t made within 21 days of the tenant receiving the rent increase notice, incomplete information was supplied, or the landlord’s rent increase notice was invalid.

Unfortunate reality

SAL chief executive, John Blackwood (pictured), says the unfortunate reality is that private landlords who find themselves repeatedly unable to raise rents often face the difficult decision to leave the sector. He tells LandlordZONE: “This puts more pressure on our already overburdened housing market, making things more difficult for providers and renters.

“We strongly urge policymakers to understand that private rental landlords have a key role to play in addressing Scotland’s housing issues and to work with us to improve the situation for all.”

SAL wants its members to continue supplying their rent data to RSS – which is treated in confidence - to include details such as the property information, tenancy start date, landlord details and landlord registration number.

Recent data from the Zoopla Rental Market Report found that across Scotland, rent increased by nearly 10% over the last 12 months, higher than anywhere else except North East England.