RESIDENTIAL LEASES - EXPIRY OF TEMPORARY RENT INCREASE REGIME

The temporary rent increase regime which applied to Private Residential Tenancies (PRTs) and certain assured tenancies expired on 31 March 2025.

Under this temporary rent increase regime, where the tenant disputed the proposed rent with a rent officer or the First-tier Tribunal, decisions were based on the lowest of (1) open market rent, (2) the new rent proposed by the landlord and (3) a maximum reasonable increase for that tenancy as defined by a taper calculation.

It had been speculated that this temporary rent increase regime would be extended to coincide with the introduction of the proposed rent control measures set out in the Housing (Scotland) Bill, but this is not the case. This means that from 1 April 2025, the rent adjudication process for PRTs and certain assured tenancies reverted to the pre-existing legal requirements. In the case of PRTs, rent increases will be limited to once a year. If a tenant under a PRT wants to challenge the increase, they can refer it to the rent officer. For applications made on or after 1 April 2025, the rent officer must set the rent at open market rent, even if that is higher than that which the landlord proposed in the rent increase notice.

The temporary rent increase regime will still apply to referrals and appeals made to a rent officer and the First-tier Tribunal before 1 April 2025.