If you let property in Scotland, rent control is an important change to understand this year. We’ve broken down what the Housing (Scotland) Act 2025 means for landlords, when the changes take effect and what you need to know now.
What is changing?
The new legislation allows the Scottish Government to designate areas as Rent Control Areas in the future.
If an area is designated, rent increases for applicable private rented properties would generally be limited to CPI (Consumer Prices Index) + 1%, with a maximum increase of 6%.
For example, if CPI is 3%, the maximum increase would be 4%. If CPI is 8%, the maximum would be 6%.
When does it start?
The new rent control framework came into effect in April 2026. The first phase focuses on local authorities gathering evidence about rent levels and where rents are rising significantly.
Councils are not expected to begin formally designating Rent Control Areas until summer 2027 at the earliest, so landlords have time to understand the changes and prepare.
How rent increases already work in Scotland
Private Residential Tenancies
Most modern private tenancies in Scotland are Private Residential Tenancies (PRTs).
For a PRT:
- Rent can generally be increased once every 12 months.
- The tenant must receive at least three months' written notice.
- The correct rent increase notice must be used.
- If the tenant wishes to challenge the proposed increase, they can refer it to the rent officer.
As there is currently no rent cap in Scotland landlords can propose an increase to the open market rental value, provided the correct rules and notice requirements are followed.
If the tenant refers the increase for review, the rent officer will consider the open market rental value of the property when deciding the rent.
Assured and Short Assured Tenancies
Some older tenancies are still Assured or Short Assured Tenancies (SATs).
Different rules apply to these tenancies. The rent can generally be increased in accordance with the terms of the tenancy agreement. If the agreement does not contain a method for calculating the increase, the rent may be increased to the open market rental value.
A tenant who wishes to challenge an increase can refer it to the First-tier Tribunal. This is why it is important to check which type of tenancy your tenant has before serving a rent increase, as the notice, timescales and process can be different.
Further rules to come
Some of the detailed rules around rent controls are still being developed, including circumstances where a landlord may be able to increase rent above the future cap.
The Scottish Government has specifically considered whether this could include situations where a landlord has made significant improvements to a property, or where the property has historically been rented at a significantly below-market rent. However, these rules have not yet been finalised, so landlords should not currently rely on a specific improvement exemption. The Government expects the relevant rules to be in place before the first Rent Control Areas are introduced. We will continue to monitor the changes and keep our landlords informed.
What Scottish landlords should do now
For now, landlords can continue to review their rents against the market and increase them in line with the rules that apply to their tenancy. It’s important to check the tenancy type, use the correct notice and follow the correct process and timescales when increasing rent, while keeping clear records of rent reviews and any improvements made to the property.
Hoose & Key manage this as standard for the landlords we work with, including annual rent reviews, tenancy administration and compliance. If you would like to know where you stand, we’re always happy to talk it through.
Frequently asked questions
When can I increase my tenant’s rent?
For a PRT, generally once every 12 months, with at least three months’ written notice. Different rules apply to older tenancies.
Can I increase the rent to market value?
Yes, for now, subject to the rules that apply to the tenancy.
What happens if my tenant challenges the increase?
For a PRT, the rent officer reviews the proposed increase and considers the open market rental value. Older Assured and Short Assured Tenancies follow a different process through the First Tier Tribunal.
What happens if my area becomes a Rent Control Area?
Future rent increases will be subject to the rent-control rules, including the CPI (Consumer Prices Index) + 1% limit, capped at 6%.
Can improvements allow me to increase the rent above the future cap?
Potentially. Significant improvements are being considered as a possible reason for an increase above the future cap, but the detailed rules have not yet been finalised.
Do I need to change anything now?
No major changes are needed yet. Continue following the current rules for your tenancy and make sure rent increases are correctly notified and served.
This article is intended as general information for landlords and reflects the position at the time of publication. Legislation and guidance may change as further parts of the Housing (Scotland) Act 2025 come into force.