Letting agents have urged Scottish lawmakers not to repeat the mistake of restricting rents that has ultimately increased costs for tenants.

Temporary rent adjudication measures end on March 31 and it will be back to standard rules. From April 1, if a tenancy started on or after December 1, 2017, rent increases will only be approved once in 12 months, while landlords must use the prescribed form and provide three months’ notice.

Right of appeal

A tenant will have 21 days of receiving the notice if they believe the proposed rent is too high, and they can then apply to Rent Service Scotland, which will decide the amount payable based on an assessment of the ‘open market’ rent. This could be lower or higher than the increase requested by the landlord. Both tenants and landlords have a right of appeal.

Propertymark reports that Office for National Statistics data shows Scotland’s annual inflation rate hit a record-high annual rise of 11.7% in August 2023, which has been reflected in rising rents for new lets, pushing up costs for new or moving tenants.

Timothy Douglas, of Propertymark, said letting agents and landlords across Scotland will welcome the end of rent adjudication measures and that importantly, there will be no immediate replacement for temporary rent controls.

“Restrictive measures on rent control have caused rents to rise and stalled investment across Scotland,” he added.

“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.”

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