End of Rent Restrictions April 1st, 2024 18 Mar, 2024

End of Rent Restrictions April 1st, 2024

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The temporary rent and eviction restrictions enacted under the Scottish Government's emergency Cost of Living legislation in 2022 are set to expire on April 1, 2024.

As a result, we will be advising landlords to consider rent increases on existing tenancies to align with prevailing market rates, effective from April 1, when existing tenancies become eligible.

Here's what landlords can anticipate:

As a tenancy approaches its ninth month or the last rent adjustment, we will notify the landlord about recommending a rent increase when the twelve-month mark is reached. A three-month notice period is necessary for any rent adjustment. The suggested increase will be based on the prevailing open market rent for the property.

How much can the rent be raised?

The rent increase notice can be up to the open market rent level. In case of disagreement from the tenant regarding the increase amount, a tapering system will be implemented, capping the maximum increase at 12% if the market rent is over 20% higher.

Despite the flexibility afforded by the new rules, it's improbable that we will recommend an increase exceeding 6% in practice. We recognize the challenging economic circumstances for tenants while acknowledging the escalating costs for landlords. However, if a landlord desires a rent increase exceeding 6%, and the market rent gap supports it, we will support the higher increase. The primary goal for all stakeholders in the private rented sector is to expand the number of properties available, which is not feasible if rental properties are financially unsustainable for landlords.

There's no immediate action required from landlords. We will contact you when the property becomes eligible for a rent increase. If you have any inquiries or concerns regarding the rent level on your rental properties, please reach out to us, and we can clarify the timeline for your specific rent review.