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Rent cap controls in 2025

Rent cap controls in 2025

In our previous blog summarising changes in the Private Rented Sector in 2024 (Private Rented Sector Legal Recap 2024) , we noted that it could be anticipated the ‘tapering’ approach introduced by the Rent Adjudication (Temporary Modifications) (Scotland) Regulations 2024 may be extended beyond the scheduled expiry date of 31st March 2025.

However, on 7th February 2025, the Cost of Living (Tenant Protection) (Saving Provision) (Scotland) Regulations 2025 (The Cost of Living (Tenant Protection) (Saving Provision) (Scotland) Regulations 2025) were laid before the Scottish Parliament, indicating that the temporary ‘tapering’ approach to rent adjudication will end, as planned, on 31st March 2025.

The Housing (Scotland) Bill, which contains longer term rent control proposals, is currently at amendment Stage 2, meaning the proposals have not yet been finalised or become law.

At the time of writing, we are not aware of any alternative transitionary measures to be adopted until the Housing (Scotland) Act is enforced.

What does this mean?

The recent 2025 Regulations confirm that the ‘tapering’ approach will continue to apply in relation to referrals made to the Rent Officer or First-tier Tribunal before 1st April 2025 and any subsequent appeals in connection with such referrals.

Where rent increases (via a Rent Increase Notice for PRTs or AT2 for Assured Tenancies) are served on or after 1st April 2025, if the tenant challenges the proposed increase, the Rent Officer and/or First-tier Tribunal will be able to once again make rent determination based on the open market rent of the property without any restriction i.e. the  tapering method ends.

Landlord and letting agents may wish to plan any 2025 increases accordingly.

Authors

Kirstie Donnelly