As landlords and tenants alike will be aware, there has been a temporary ban on rent increases for those subject to a private residential tenancy since September 2022. This was part of the Scottish Government’s emergency response to the ongoing Cost of Living Crisis (The Cost of Living (Tenant Protection) Act).
It will therefore come as relief to private landlords that the ban has now been lifted, however a “cap” on rent increases remains. As of 1 April 2023, landlords may increase rent due under a private residential tenancy by 3% only. This applies to rent increases mid-tenancy. In order to do so landlords must serve a valid rent increase notice giving their tenant(s) 3 months notice before the rent increase can take effect. Rent can only be increased once per 12 months while the cap applies. Under the emergency legislation, the cap will be in place until at least 30 September 2023 and it may be extended for a further 6 months, in line with the restrictions on evictions (we covered this in an earlier blog).
There are limited circumstances whereby a landlord may seek to increase rent by up to 6%. In order to do so the landlord must prove that they have increased costs (such as higher insurance premiums or mortgage payments) and apply to the Rent Service Scotland with vouching for those costs. A rent officer must agree that the higher rent increase sought is reasonable in the circumstances. A valid notice must still be served before the rent increase can take effect.
Our litigation team has experience in dealing with landlord and tenant disputes and act for landlords across Scotland. If you would like advice or assistance with any aspect of landlord and tenant law please get in touch with our litigation team.
