Introduced in April 2024 as a transition from the short-term rent freeze under the Cost of Living (Tenant Protection) (Scotland) Act 2022, the 12% cap to rent increases expired on March 31, 2025. As of today, rent disputes will be assessed based on ‘open market’ values, a move that tenant groups warn could lead to significant and unaffordable increases.

New analysis by Generation Rent found that the temporary cap led to a sharp rise in tenants challenging rent increases, with 899 applications submitted since its introduction - an eightfold increase compared to previous years. Of these cases, 32% resulted in rent hikes limited to the 12% maximum. The highest number of cases occurred in Edinburgh, followed by Glasgow and Aberdeen.

Edinburgh North and Leith was the Westminster constituency with the most cases (108), followed by Edinburgh South West (78) and Edinburgh South (75). Outside Edinburgh, Glasgow South saw the most cases (53).

Of seats that had 10 or more cases, Glasgow North East saw the largest proportion capped at 12% (54%), followed by Aberdeen South (53%) and Motherwell, Wishaw and Carluke (50%).

The Scottish Government is currently legislating to bring in a permanent rent cap through the Scottish Housing Bill. However, the cap, which will give local authorities the power to cap rent increases to CPI +1% at a maximum of 6%, will not come into force until sometime in 2027.

Despite significant concerns from tenant groups, including Generation Rent, that private landlords will seek to significantly hike rents in the intervening time until the permanent cap becomes law, the Scottish Government has ruled out extending the temporary restrictions.

The removal of the temporary restrictions means that Rent Service Scotland will use the local open market rent as the benchmark for determinations so rent increases could be even higher than the landlord asked for.

The Scottish Government has launched a campaign to make renters aware of their rights in challenging rent increases. But Generation Rent is concerned that the fear of having to pay an even higher rent increase than the landlord has proposed may discourage many renters in Scotland from doing so.

Therefore, it has launched a new resource which maps adjudication cases to help renters understand what rent levels Rent Service Scotland is likely to determine for their home, and whether challenging their landlord’s proposed rent is worthwhile. The nearly 900 cases since May 2024 have been mapped and colour-coded based on the number of bedrooms.

Dan Wilson Craw, deputy chief executive at Generation Rent, said: “Everyone needs a safe, affordable home. We know high rents are already pulling many renters in Scotland and their families into poverty. The protections over the past few years have been a lifeline and their removal leaves renters up and down the country vulnerable to unaffordable rent hikes that could force them out of their homes. We’re very concerned that landlords in Scotland will use the next two years to significantly hike the rent on their tenants before the proposed longer term rent cap becomes law.

“Renters should be able to challenge a rent increase with the knowledge that they at least can’t make their situation worse. Our new resource gives people the tools to review recent decisions of Rent Service Scotland near them and make a more educated decision on the best approach to take.” 

Tenant union Living Rent has strongly criticised the government’s decision to let the cap expire without interim protections before a permanent rent control framework is introduced in 2027. According to their research, nearly all tenants (98%) report worsening mental health due to rent uncertainty, and more than half (51%) are considering moving as a result.

Ruth Gilbert, national campaign chair for Living Rent, said: “This government has once again prioritised landlords’ vested interests over tenants’  need for affordable housing. It is completely irresponsible to end the measures that have offered tenants interim protections from sky high rent increases before permanent rent controls become law, and while rents continue to push people into poverty.

“Without this cap, tenants are going to be hit hard by a wave of ‘open market’ rent increases as landlords cash in following two years of emergency protections. Open-market rent is completely unaffordable. It is ludicrous that this government thinks it is a fair metric for determining rent levels.

“The rent controls and protections contained in the Housing Bill will likely only come into effect in 2027. Until then, tenants are facing completely uncapped rents. This will decimate our communities, force people out of their homes and further exacerbate both homelessness and poverty. As we’ve seen, unregulated, out of control rents also drive high inflation. 

“Landlords’ claims that rent caps lower supply is untrue. According to government data the number of properties in the sector has increased since the rent cap. Right now, they are celebrating the end of the rent adjudication protections as they know it will lead to increased profits for them.

“It is beyond belief that the government is proceeding with this plan. Tenants who have already struggled with year-on-year rising costs are only going to be plunged into further poverty by this decision.”

Rent controls ‘have stalled investment’

Property industry representatives, meanwhile, welcomed the end of the temporary rent cap.

Timothy Douglas, head of policy and campaigns at Propertymark, stated: “Letting agents and their landlords across Scotland will welcome the end of the rent adjudication measures implemented by the Scottish Government. Importantly, there will be no immediate replacement for temporary rent controls, and it will be back to standard rules for rent adjudication from 1 April 2025.

“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.”