Restrictions on Rent Increases in Scotland – What is Changing?
What are the current regulations?
To recap our post from 5 October, the Scottish Government announced a Rent Freeze and Eviction Ban in Scotland on 6 September 2022 that went into force with immediate effect.
Currently, rents are not permitted to be increased until 31st March 2023, with some exceptions if Landlords are facing particular hardship such as:
- Increased Property Costs
- Increased Insurance Payments
- Increased Interest Rate Mortgages
In these cases there would be a maximum of 3%, otherwise the cap is 0% across the board, ie no rent increase allowed. Any rental increase notice already served prior to 6th September will be allowed to take place.
In addition to the Rent Freeze, it’s also worth noting that there will be a freeze on evictions for an initial six months. Anti-social or criminal behaviour would be excluded from this ban. Landlords will be able to proceed with eviction proceedings but will not be allowed to execute an eviction until the end of the restrictions.
What is changing?
The Scottish Government announced extended protection for Tenants, meaning Landlords will be permitted to only increase rents by 3% from 1 April 2023 onwards. If a Landlord has incurred increases in prescribed property costs, they are able to apply to the rent officer to increase the rent by 6%. Prescribed property costs are:
- Mortgage/Standard Security Interest
- Insurance Premiums (excluding general buildings/contents insurance)
- Service Charges paid by the landlord for which the tenant is responsible. Such as:
- Utilities
- Council Tax
- Broadband
- TV License
How do I carry out a 3% increase?
Landlords and Letting Agents will be required to give notice to the Tenant in the same manner they did prior to the Rent Freeze. For those on a Private Residential Tenancy, that would require giving 84 days notice (not including additional days for delivery) in writing of the prescribed increase. This notice cannot be sent out prior to 1 April 2023 or it will be considered invalid.
How do I carry out a 6% increase?
From 1 April, the Landlord or Letting Agent will need to give notice to the Tenant that they are applying to a Rent Officer and outline the increase in prescribed property costs. After notice has been given, the Landlord will need to apply to the Rent Officer, showing proof of the increases and that the Tenants were given notice.
From there, the Rent Officer will review the application and inform the Tenant and Landlord of the new rent along with the start date, if the application is approved.
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If you would like some more information or a chat over a coffee about your rental property in Glasgow or Edinburgh, then get in touch!