Making improvements in Rent Pressure Zones: guidance for landlords

If a landlord has a let property which is leased under a private residential tenancy and located in a Rent Pressure Zone, they will only be able to increase the rent by the amount stated in the regulations which designate the area as a Rent Pressure Zone. More information on Rent Pressure Zones is available online. Alternatively, organisations which give advice on housing matters, such as, your local authority, your local Citizens Advice Bureau, Shelter Scotland, the Scottish Association of Landlords (SAL) or a solicitor can be contacted for guidance. 

If a landlord has made any improvements to their let property, they may be able to claim an additional amount of rent to reflect those improvements and use that amount to calculate the final figure for the rent increase.  A landlord will not be able to claim for repairs and maintenance to their let property to meet the Repairing Standards or decoration to their let property.

The Scottish Government has consulted with a number of stakeholders to determine  the most common types of improvements and the average cost of each of these improvements in different-sized let properties.  These improvements may be eligible for an additional amount of rent that can be used in the calculation of the overall increase to the rent for a let property.  (However it is worth noting that whilst these are the most common types of improvements, the Rent Officer will consider other types of improvements providing they are not repairs.)  Any improvements relating to energy efficiency will be considered on a case by case basis - at present no average costs are widely available.

The final additional amount of rent for any improvements undertaken will be determined by an independent Rent Officer who will aim to send the determination to the landlord and tenant within 35 calendar days of receiving the application.  Average costs, which include supply and installation, provided in the table below, should be used only as a guide and as a potential starting point for calculations.  These costs will be reviewed annually.  It is not a ‘one size fits all’ approach; as the Rent Officer will use discretion to set the final amount for the improvements.  A number of factors relating to the improvements will be considered including the property’s location and impact of costs due to that location along with the size and scale of improvements made. 

Average Improvement Costs (supply and installation)

Improvement	Studio	1 Bedroom	2 Bedroom	3 Bedroom	4 Bedroom	5 Bedroom	Lifespan (years)
Heating System (Gas)	£3,500.00	£4,100.00	£4,250.00	£4,400.00	£4,550.00	£4,700.00	15
Heating System (Boiler only)	£2,500.00	£2,500.00	£2,500.00	£2,500.00	£2,500.00	£2,500.00	15
Heating System (Electric)	£1,500.00	£1,500.00	£1,750.00	£2,000.00	£2,250.00	£2,500.00	15
Double Glazing	£2,000.00	£2,500.00	£3,000.00	£3,500.00	£4,000.00	£4,500.00	20
Secondary Glazing	£1,000.00	£1,500.00	£2,000.00	£2,500.00	£3,000.00	£3,500.00	20
Triple Glazing	£3,000.00	£3,500.00	£4,000.00	£4,500.00	£5,000.00	£5,500.00	20

Kitchens and bathrooms

Improvement	Small	Medium	Large	Lifespan (years)
Kitchen	£3,100.00	£3,600.00	£4,100.00	15
Bathroom	£3,000.00	£3,000.00	£3,000.00	15

When an application form is submitted, receipts for the supply and installation should be included.  If there are no receipts available, the Rent Officer will use the above average costs as a starting point along with knowledge and experience to assess an additional amount payable due to the improvement.

The full costs of the improvements will be recovered over the lifespan through the rent increase.  E.g. the average cost for the supply and installation of a medium kitchen with a typical lifespan of 15 years is £3,600.00.  Therefore the amount of the rent increase, above the capped formula, that you could expect to receive for a monthly rent charge would be (£3,600.00  ÷ 15) ÷ 12 =  £20.00 per month.

Photos of the property ‘before’ and ‘after’ improvements were completed would also be helpful.  The Rent Officer may decide to inspect the let property and the landlord will be invited to the inspection.  The landlord does not need to attend the inspection as long as the tenant is willing to agree that the Rent Officer can have access to the let property.

The additional amount of rent for improvements made to a let property can be claimed by completing the application form either online, which will then be submitted electronically to Rent Service Scotland or by printing the form and sending it by post to:

Rent Service Scotland
Compass House
11 Riverside Dundee
Dundee
DD1 4NY

For further information please contact us by telephone on 0300 244 7000 or alternatively you can email us on rss.dundee@gov.scot.