NEW proposals could see rent increases in Scotland limited to the consumer price index (CPI) plus 1% – up to a maximum increase of 6%.
If approved by parliament, the rent cap would apply to increases both during the term of a tenancy and in between tenancies.
The Scottish Government explained that the proposed rent cap would stabilise rents, support tenants, and help to tackle poverty, whilst also providing ‘appropriate protection’ for the property rights of landlords and supporting investment.
A consultation in Spring 2025 will seek views on how powers that allow exemption from rent controls or rent increases above the cap could be used by Scottish ministers.
Housing minister Paul McLennan said, “The housing (Scotland) bill includes a package of reforms which will help ensure people have a safe, secure, and affordable place to live.
“Eradicating child poverty remains this government’s priority and having a home can make a direct contribution to achieving this. This is why ensuring families can have secure and affordable homes that meet their needs is part of our approach to tackling the housing emergency.
“There is a consistent view that Scotland needs a thriving private rented sector – one that offers good quality, affordable housing options and values the benefit that investment in rented property delivers. This announcement provides certainty for tenants and continues to encourage investment.
“Setting out the form of the rent cap in this way – with CPI as the basis – allows for a reflection of the costs to landlords of offering a property for rent whilst offering protection for tenants in terms of limiting more significant rent increases.
“We are bringing forward a system of rent control that works for Scotland – a system that supports stabilisation of rents for tenants, whilst ensuring there can be a balanced approach that provides appropriate protection for the property rights of landlords and supports investment in the development of rented homes.”
