The rent (and eviction) restrictions that were introduced as part of the Scottish Government’s emergency Cost of Living legislation in 2022 will come to an end on the 1st of April 2024.
This means we’ll be recommending rent increases on existing tenancies to bring rents closer to open market rent levels to commence from 1st April when existing tenancies become eligible.
WHAT TO EXPECT
When a tenancy approaches 9 months since it began, or last had the rent increased, we’ll email the landlord with a recommendation for increasing the rent when the 12 month point on the tenancy is reached (3 months’ notice is required for any rent increase). The amount of increase that we recommend will depend on what the open market rent level would be for the property.
HOW MUCH CAN THE RENT BE INCREASED BY?
The rent increase notice can be for any value up to the open market rent level of the property. In the event of the tenant disputing the amount of the increase, a tapering system will be applied that limits the maximum increase at 12% (where the market rent is more than 20% higher).
Despite the relative freedom of the new rent increase rules, it’s unlikely we will recommend an increase of more than 6% in practice. We’re conscious of the difficult economic environment for tenants, whilst balancing rising costs for landlords. Having said that, if the landlord wants to increase the rent by more than 6% and the gap with the open market rent supports this, we will absolutely support the higher increase. The priority for every stakeholder in the private rented sector is to grow the number of properties in the private rented sector and this is not possible if rental properties are not financially viable for landlords.
There is nothing for landlords to do at this point. We’ll be in touch when the property becomes eligible for an increase. If you have any questions or concerns about the rent level on your rental property(ies), please let us know and we can explain the timescale for your specific rent review.