Newly updated Private Residential Tenancy rent adjudication figures have found there were 866 appeals to the rent adjudicator since the end of the 3% rent cap (31 March 2024). The average rent increase awarded by the rent adjudicator after a tenant had challenged their rent increase was 9% above the existing rent.

The emergency rent adjudication measures, put in place by the Scottish Government when the 3% rent cap ended on 31 March 2024, have enabled tenants to challenge their rent increases and see them reduced to open market rent, the landlord’s suggested rent increase or a formula capped at 12%, whichever was lowest. 

From 1 April, the rent adjudication service will only use ‘open market rent’ to determine permissible rent increases.

On average, the average proposed rent increase by the landlord was 19.7% above the existing rent. The average open market rent was 20.9% above the existing rent, the figures revealed.

In real terms, this meant that landlords proposed to increase rents by an average of £154. If the rent would go to open market rent, tenants would face on average an £160 increase. However the decision by the rent adjudicator led to an average £71 increase, Living Rent said.

In a quarter of cases (25%) that went to rent adjudication, the open market rent was 30% above what people already pay. Therefore, without the measures set to be cut in April, a quarter of tenants could face rent increases of 30% and more.

However, according to a survey by Living Rent, despite 60% of tenants getting a rent increase in 2024, 80% of respondents said they didn’t challenge their increase. This is concerning as 42% of respondents had increases above 11%. Living Rent says that this highlights the rent adjudication system needs to be improved.

Of those that did not challenge their increase, many did not know they could challenge (28.7%); thought nothing would happen (38.4%) or were worried about their landlord’s response (37.8%). 8.1% ran out of time. This shows how tenants need greater protections to exercise their rights.

Looking forward, 53.7% of respondents (307 people) thought that their landlord would increase their rent this year, whilst 38.6% (221 people) thought that they would maybe increase the rent. Only 7.7% of people believe their landlords would not increase their rent. 

Of those polled in January, nearly all tenants (98.7%) said that the prospect of a rent increase had some impact on their mental health. More than two thirds of tenants (72%) said that a potential rent increase has either a huge impact (37.4%) or had an impact (36.6%). Of those who thought they would be given a rent increase this year, half said they would have to move (51%). 

Living Rent’s national campaign’s chair, Ruth Gilbert, said: “This government has completely forgotten tenants. It is completely irresponsible to end the measures that have protected tenants from sky high rent increases when rents are already pushing people into poverty.

“As soon as these measures end on the 31 March, tenants are going to be hit by a wave of rent increases as landlords cash in after two years of emergency protections.  The rent controls and protections in the Housing Bill will only come into effect in a distant future. From now until then, tenants are facing years of completely uncapped rents. 

“Landlords increasing rents will decimate our cities, force people out of their homes and further exacerbate both homelessness and poverty. 

“Landlords claim that investment stopped in 2022 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 protections as they know it will lead to a huge windfall for them. It is beyond belief that the government is happy with this plan. Tenants everywhere will suffer badly because of it.”

Aoife Deery, CAS senior social justice policy officer, added: “We welcome this analysis from Living Rent. It’s clear from our evidence that there is huge concern across the Scottish Citizen Advice Network about rent increases. Temporary modifications to the rent adjudication system have had some effect to offer protection to some people from rent increases, but these are due to expire on 31 March. 

“If further protection against high rent rises is not put in place, there will be serious consequences. More people in Scotland will face unaffordable rent and will have to find alternative accommodation. This means more people could become homeless. In the context of a national housing emergency and the cost-of-living crisis, this will add further pressure to a system that already cannot cope, and cause avoidable harm to many people.   

“We’ve written to the Scottish housing minister to ask the Scottish Government to act urgently to prevent this by maintaining the effect of the temporary modifications through any available mechanism. This provision must be in place until the new Housing Bill takes effect.”