The Cost of Living (Tenant Protection) (Saving Provision) (Scotland) Regulations 2025
Prior to the pandemic and cost of living crisis, rent increases were not subject to much attention in the Scottish PRS. This is because landlords rarely sought to increase the rent during a tenancy, often allowing the rent to remain the same for a number of years. When landlords did on the rare occasion seek to increase rent during the tenancy, the practical reality in the days of Short Assured Tenancy mandatory section 33 evictions were such that, if a rent increase could not be agreed, the landlord was able to terminate the tenancy with relative ease, and was entitled to do so. This goes some way to explaining why there is limited case law regarding rent increase provisions.
Since 2020, various rent controls have been introduced, extended and repealed, with further changes proposed in the Housing (Scotland) Bill.
We are now almost a year since the introduction of temporary rent adjudication on 1st April 2024, which moved away from open market rent to a new tapering method of rent determination.
On 7th February 2025, The Cost of Living (Tenant Protection) (Saving Provision) (Scotland) Regulations 2025 were laid before the Scottish Parliament, in terms of which the temporary ‘tapering approach’ will end, as originally planned, on 31st March 2025.
The Housing (Scotland) Bill, which contains longer term rent control proposals, is currently at amendment Stage 2, meaning the proposals have not yet been finalised or become law. At the time of writing, we are not aware of any alternative transitionary measures to be adopted unless/until the Housing (Scotland) Bill becomes law.
What does this mean for landlords/letting agents?
Unless further temporary measures are introduced, landlords and agents can anticipate, from 1st April 2025, rent increases and adjudication will be based on the original rules contained within existing legislation. If a tenant challenges a proposed increase, the Rent Officer and/or First-tier Tribunal will make rent determination based on the open market rent of the property without restriction.
However, the 2025 Regulations do preserve the ‘tapering’ approach in relation to referrals made to the Rent Officer or First-tier Tribunal before 1st April 2025. Further, this method will continue to apply to any appeals in relation to referrals before that date.
Landlord and letting agents may wish to plan any 2025 increases accordingly.
For more information or advice contact our PRS experts – prs@tcyoung.co.uk
