Rent controls
Private rents in some areas can be unaffordable, making it harder for people to find suitable homes. The Housing (Scotland) Act 2025 allows for long-term, evidence-based rent controls to be introduced in areas where rents are rising steeply.
Local authority assessments
From 1 April 2026, local authorities must assess rent conditions in their area and submit a report to Scottish Ministers at least once every 5 years. The first report from each local authority is due no later than 31 May 2027.
These assessments will inform decisions on whether to designate a rent control area. They reflect the fact that rent conditions can vary significantly across different parts of Scotland.
Collecting information on rent levels
From 1 April 2026, Scottish Ministers and local authorities can ask landlords and tenants for information about rented properties and the rent charged. This will help to ensure any decision to introduce rent controls is based on robust evidence.
Designating a rent control area
Scottish Ministers have the power to designate rent control areas.
They can only do this if they are satisfied that restricting rent increases is:
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necessary and proportionate to protect the social and economic interests of tenants in that area
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a necessary and proportionate control of landlords’ use of their property
Before designating a rent control area, Scottish Ministers must consult the relevant local authority and representatives of landlords and tenants in the area.
A rent control area designation will last for a maximum of 5 years, unless it is removed earlier due to a change in circumstances. Scottish Ministers must keep any designation under review to ensure it remains necessary and proportionate.
How the rent cap works
In a rent control area, rent increases for applicable properties which are let under private residential tenancies will be limited to the Consumer Price Index (CPI) plus 1%, up to a maximum of 6%.
This balances the impact of landlords' costs increasing over time, with protecting tenants from significant rent rises.
The cap applies both during a tenancy and between tenancies, to prevent rents rising steeply when a new tenancy begins.
Rent for a property in a rent control area can only be increased once every 12 months, even if the tenant changes within that period.
Tenants in a rent control area who believe a landlord has tried to raise rent above the level permitted, or has increased rent more than once in a 12 month period, can challenge this through a rent officer or the First-tier Tribunal (Housing and Property Chamber).
The Housing (Scotland) Act 2025 also gives Scottish Ministers the power to bring forward regulations allowing the First-tier Tribunal to require landlords to pay a penalty or compensation where they have not complied with the rent cap.
When the rent cap does not apply
The rent cap will not apply when rent is set at the start of a new tenancy in a property that:
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is completely new to the private rented sector
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was bought by a landlord with vacant possession, and the new tenancy is the first since that purchase
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has not had a private residential tenancy or assured tenancy in the previous 12 months
The rent cap also does not apply to exempt properties.
Exempt properties
Some properties will be exempt from the rent cap. This includes Mid-Market Rent and some Build-to-Rent properties. This is to protect investment in expanding the housing supply.
Rent increases in these properties will follow the standard rules that apply outside rent control areas.
Adverts for exempt properties in a rent control area will be required to state that the property is exempt, so tenants can make informed decisions.
When rent increases above the cap may be allowed
In limited circumstances, a rent increase above the rate of the rent cap may be allowed, in accordance with secondary legislation to be brought forward by the Scottish Government.
We have consulted on how these powers might be used, including consideration of cases where rent has been consistently below market rate or where a landlord has invested in improving the property.
We are working through consultation responses to define exactly when this would apply. Any such regulations will be in place before the first rent control areas are designated.
Advertising requirements in a rent control area
To help tenants make informed decisions, landlords in a rent control area must include specific information in property advertisements.
For most tenancies, this must include:
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confirmation that the property is in a rent control area
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the proposed rent for the new tenancy
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the rent paid under the previous tenancy
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whether there was a rent increase in the previous 12 months
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if there was an increase, the date it took effect