On 1 April 2025, the temporary measures to the rent adjudication system that could limit rent increases for private rented tenants came to an end. Now, if tenants seek adjudication of a rent increase, the new rent set will be based on the open market rent of a property. This blog explains the system of rent adjudication in more detail. It also looks ahead to possible future changes in the rent control system as set out in the Housing (Scotland) Bill.
Background to the temporary changes
In 2022, emergency legislation, the Cost of Living (Tenant Protection) (Scotland) Act 2022, was passed by the Scottish Parliament as a temporary response to the impact of the cost crisis on those living in the rented sector.
The Act introduced a cap on rent increases for existing tenants. Private landlords could only increase rents for existing tenancies by 3%, or up to 6%, if approved by a Rent Officer, working for Rent Service Scotland. This legislation came to an end on 31 March 2024.
To support a transition away from the rent cap, the Scottish Government introduced a temporary change to the existing rent adjudication process from 1 April 2024. This did not limit the rent increase that landlords could put in a rent increase notice. Instead, it amended the rent adjudication process that took place when a tenant appealed the rent increase. The temporary change meant that Rent Service Scotland determined the rent payable based on the lowest of three figures:
- the open market rent
- the rent requested by the landlord
- a new taper that supported the transition away from the rent cap (if the gap between the market rent and the current rent is 24% or higher, the rent increase will be capped at 12% of existing rent).
Further information regarding the temporary changes can be found in the SPICe blog Moving on from the rent cap for private tenants – what is planned next?
What happens after 1 April 2025?
From 1 April 2025, the previous system of rent adjudication has resumed.
Most renters in Scotland have a private residential tenancy (PRT). PRTs were introduced from 1 December 2017 through The Private Housing (Tenancies) (Scotland) Act 2016 (‘the 2016 Act’).
The PRT introduced new rules on rent with the aim of providing existing tenants with protection against excessive rent increases and providing rent predictability:
- Rents can only be increased by the landlord once every 12 months by giving the tenant at least three months’ notice.
- If a tenant thinks their rent increase is too high, they can apply to a rent officer at Rent Service Scotland (RSS) for an adjudication. The rent officer will set an ‘open market rent’ for the property, based on rents for similar properties in the area. The open market rent may be the same, higher or lower than the landlord is asking for. If a tenant or landlord does not agree with the RSS decision they can appeal to the Tribunal.
- Local authorities have powers to apply to the Scottish Government to have a rent pressure zone (RPZ) declared in their area. Within an RPZ, annual rent increases for existing tenants with a PRT would be capped at no more than Consumer Price Inflation (CPI) plus 1%. No local authority has used these powers to make an application to the Scottish Government for an RPZ.
There are transitory protections for renters who have appealed rent increases to RSS under the temporary rent adjudication process. This means that the 2024 regulations continue to have effect in relation to referrals made to the rent officer or First-tier Tribunal before 1 April 2025, as well as any subsequent appeals in connection with such referrals.
Further details on how to get Rent Service Scotland to check a rent increase notice are on the mygov.scot website.
There are no restrictions on the rent that landlords can charge at the start of a tenancy, that is for the tenant and landlord to agree.
What do stakeholders say about this?
In March 2025, Living Rent, a tenants’ union published Challenging Rent Increases: the rent adjudication system and rent increases since April 2024. The report analyses the decisions made by Rent Service Scotland between April 2024 and February 2025 under the temporary changes to the rent adjudication process.
The report concludes that:
“The Scottish Government needs to continue temporary protections through the rent adjudication service until tenants have permanent rent control protections… Unless the temporary protections for tenants are kept, rents will continue to rise ahead of permanent rent controls, undermining the long-term impacts of the rent control policy intent.”
Campaign group Generation Rent also analysed the decisions made by Rent Service Scotland since April 2024 and found that “temporary restrictions on rent increases in the Scottish private rented sector led to a more than eightfold increase in renters challenging rent hikes from their landlord.”
In PQ S6W-35404, Mercedes Villalba MSP asked the Scottish Government “whether it has considered any impact of tenants potentially being left without any protections between the expiration of rent adjudication on 31 March 2025 and the proposed introduction of rent control areas.”
In the answer, Paul McLennan MSP, Minister for Housing, stated:
“The temporary modifications were introduced as part of the Cost of Living (Tenant Protection) (Scotland) Act 2022 to support a cost-of-living crisis. The Housing (Scotland) Bill will seek to introduce permanent rent control legislation.
From 1 April 2025, existing requirements under the Private Housing (Tenancies) (Scotland) Act 2016 will continue to provide protection from above market rent increases. We are taking steps through a further wave of our Renters Rights Campaign to ensure tenants are made aware of their rights to seek an independent review of a proposed rent increase.”
Some organisations, including letting agent and property industry representatives, have welcomed the removal of the temporary adjudication process arguing that it gives landlords time to consider if rents are below market rent level to assess and plan for adjustments.
A representative from Propertymark was quoted in Scottish Housing News as saying:
“Restrictive measures on rent control have caused rents to rise and stalled investment across Scotland. It’s now vital that policy makers learn the lessons and do not repeat the mistakes of restricting rents that put up costs for tenants over the long run.”
What is planned in the Housing (Scotland) Bill?
The Housing (Scotland) Bill was introduced on 26 March 2024 and at the time of writing is at Stage 2 (where detailed amendments are considered).
The Bill proposes to remove the rent pressure zone provisions from the 2016 Act and replace them with rent control area (RCA) provisions. Within an RCA, rent increases for some existing tenants and new tenants would be limited.
The Bill sets out how an RCA can be designated. There are roles for local government, the Scottish Government and the Scottish Parliament in this process. The process for designating an RCA is set out in the SPICe briefing on the Housing (Scotland) Bill.
Given the timescales set out in the Bill, assuming the first local authority assessments are received by the Scottish Government at the end of November 2026, it would appear to be at least mid-2027 before any RCA could be operational.
But it’s also worth remembering that given the process for declaring an RCA, we can’t yet say whether any RCAs will be introduced in the future.
The Bill also contains proposed changes to the rent adjudication process. Currently the open market rent set by rent officers or the Tribunal can be the same, higher, or lower than the landlord’s proposed new rent.
The Bill proposes that, following an application for adjudication on a rent increase notice, Rent Service Scotland or the Tribunal, would not be able to set a rent higher than that proposed by the landlord.
Another change proposed in the Bill relates to how often rents can be increased. The 2016 Act provides that rent for a PRT may not be increased more than once in a 12-month period. This means that there is potential for a landlord to serve a rent increase notice giving their tenant three months’ notice within the first 12 months of a tenancy. Section 21 of the Bill proposes that rent increases in a PRT will not be allowed within the first 12 months of a tenancy.
More details on the Bill can be found in a SPICe briefing on the topic.
The Bill process is ongoing, and the final details will depend on the Parliamentary process. Stage 2 on the part of the bill dealing with rents is due to start in the Local Government, Housing and Planning Committee later in April 2025.
Laura Haley, SPICe Research