Increases capped at CPI+1% up to a maximum of 6%.
An amendment to the Housing Bill will set out how rent increases
will be capped in areas where rent controls apply, subject to the
approval of Parliament.
In response to stakeholder feedback, rent increases would be
limited to the Consumer Price Index (a measure of inflation) plus
1%, up to a maximum increase of 6%. If approved, the rent cap
will apply to rent increases both during the term of a tenancy
and in between tenancies, and will only apply in areas where rent
control is applied.
Where it applies, the rent cap will stabilise rents – supporting
tenants and helping to tackle poverty, whilst 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 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.”
Background
Minister for Housing:
Statement on Housing (Scotland) Bill
