Rent Controls In Scotland Ended on 31 March Allowing Landlords To Increase Rents Towards Market Levels

12th April 2025

The temporary rent control measures in Scotland ended on March 31, 2025. These measures, introduced during the cost-of-living crisis, included a cap on rent increases.

As of April 1, 2025, landlords can now adjust rents based on market conditions, though they must still provide tenants with three months' notice for any rent increase.

However, the Scottish Government is working on a Housing Bill that could introduce permanent rent controls by 2027. This would allow local authorities to cap rent increases to CPI + 1%, with a maximum of 6%, in designated rent control zones

With the end of temporary rent controls in Scotland on April 1, 2025, landlords now have the freedom to adjust rents based on market conditions. Many landlords are expected to increase rents to recover losses incurred during the rent cap period4. Tenant advocacy groups have raised concerns about significant rent hikes, which could lead to affordability issues for renters.

However, tenants still have the right to challenge rent increases through Rent Service Scotland, though the adjudicated rent could be higher than the landlord's initial proposal2. Permanent rent controls are being considered under the Housing (Scotland) Bill, but these won't come into effect until 2027.

So for some people this is yet another increase that may be coming in 2025 to add to the many other increases in the cost of living.

The immediate impact of ending rent controls is that tenants may face a new rent landscape largely driven by open market forces. Without the temporary caps in place, landlords now have more freedom to align rents with current market rates. In many cases, this is expected to lead to sharp rent increases as landlords look to recover losses incurred during the period of capped growth and offset rising costs. This sudden exposure to market dynamics could put significant pressure on tenants' budgets, making it harder for many to afford a home in areas where demand is high.

Even though tenants still have the right to challenge increases through a formal appeals process, the final rent determinations will be based on open market values. This means that even if a tenant challenges a proposed increase, the adjudicated rent could end up higher than the landlord’s initial offer. Such outcomes are especially concerning for vulnerable communities or lower-income households, as these increases might force them to cut back on essential household items, seek accommodation in less desirable areas, or even face displacement.

In a broader perspective, while the Scottish Government is working on a Housing Bill that aims to introduce permanent rent controls by 2027, the interim period presents uncertainty for tenants. There is hope that the incoming legislation will create a more balanced framework that protects tenant affordability with measures like a cap of CPI plus 1% (up to 6%). But until these new regulations are in place, tenants are navigating a transition period where market imbalances could exacerbate housing insecurity.

Beyond the immediate financial strain, the removal of temporary controls adds a layer of complexity to tenant-landlord relations. Renters now have to be more knowledgeable about their rights and proactive in challenging unjustified increases—a process that can be both time-consuming and stressful. In some instances, the fear of facing even higher rent through the appeals process may deter tenants from contesting increases at all, leaving them with little recourse if rent spirals upward unexpectedly.

Looking further ahead, this regulatory shift provides a glimpse into how market-driven policies can sometimes yield unintended consequences, such as reduced housing stability and affordability issues. Discussions continue among tenant advocacy groups, policymakers, and industry experts to ensure that the long-term framework—potentially introduced in 2027—strikes a fair balance between securing sustainable returns for landlords and safeguarding tenants from dramatic hikes. This evolving situation is not just a matter of policy but a fundamental aspect of how communities experience housing security and stability in Scotland.