Private rent rises capped at 3% for existing tenants in Scotland

Private rent rises capped at 3% for existing tenants in Scotland


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Politicians in the Scottish Parliament have backed a controversial cap which means rent rises for private tenants mid-tenancy cannot exceed 3.0 per cent.

There will also be a continuation of a current – and presumably temporary – eviction ban imposed on private landlords. 

According to a statement from the Scottish Government, run through an informal alliance of the Scottish National Party and the Green Party, if a private landlord chooses to increase a tenant’s rent mid-tenancy, the increase will be capped at 3.0 per cent – private landlords will alternatively be able to apply for a rent increase of up to 6.0 per cent :to help cover certain increases in costs in defined and limited circumstances.”

The statement continues: “Enforcement of evictions will continue to be paused for up to six months except in a number of specified circumstances. Increased damages for unlawful evictions of up to 36 months’ worth of rent will continue to apply.”

These measures, introduced last autumn when politicians used the terms “temporary” and “emergency” to describe their need, will now last until September 30 – with politicians saying they have the option to extend for another six-month period if required.

However, the rent cap for student accommodation is to be suspended, recognising its limited impact on annual rents set on the basis of an academic year.

Green Party activist and Housing Minister Patrick Harvie says: “Our emergency legislation has given tenants across the rented sector additional protection as we continue to live through these challenging and uncertain economic times.

“It is clear that many households in the private rented sector in particular continue to struggle, which is why we are capping in-tenancy rent increases in the private sector at 3.0 per cent from next month, with safeguards in place recognising the effects the cost of living crisis may have on some landlords. 

“Our restrictions on evictions will continue across all sectors, with the social sector rent cap having been replaced with voluntary agreements from landlords to keep rents affordable.

“We will continue to keep these measures under review, ensuring they remain necessary and proportionate to the challenges at hand.”

Landlords can apply to Rent Service Scotland to increase rent to partially cover specific costs including increased mortgage interest payments on the property they are letting, an increase in landlords’ insurance or increases in service charges paid as part of a tenancy, subject to an overall limit. 

This limit is currently set at 3.0 per cent of total rent but from April 1 the limit will be increased to 6.0 per cent. 

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