The measures were introduced in 2022 to help people during the cost-of-living crisis and were due to come to an end in March.

The restrictions currently allow tenants on most tenancy types to challenge a rent increase through the rent officer or tribunal, with a tapering formula applied to limit the level of rent increase allowed. 

Starting from April 1, any rent increase notices issued will no longer be subject to the temporary controls. This means that if a tenant appeals to the rent officer or tribunal, the rent will be set at the open market rental value, even if it is higher than what the landlord initially proposed. 

However, the government still plans to introduce permanent rent controls in the future. A Housing Bill is currently going through Parliament to bring these controls into force, but it is unlikely that any new rent control legislation will be implemented before 2027.

Housing minister Paul McLennan told The Herald: “Supporting tenants is a priority for the Scottish Government and we will continue to engage and work with stakeholders, including tenants’ groups.

“The temporary changes to rent adjudication were in place to support the transition away from the short-term rent cap that was in place under the Cost of Living Act. They were in place for a year to manage the risk of very steep increases in rents for tenants if there was a return to market rent in a single step and will come to an end on March 31, 2025. We intend to lay regulations to ensure any application for a review of a rent increase received before April 1 is decided in line with the temporary changes.

“Most private tenants continue to have a right under existing legislation to seek a review of a rent increase if they consider it is too high and I would encourage any tenant who is concerned about a rent increase to apply for a review. Raising awareness of the strong existing rights tenants have is critical and we will launching a Renters Rights Campaign later this month that will support tenants to understand their rights, how to use them and where to seek further advice and support.

“We know that there is a need for longer term action on rents, which is why we are taking forward measures in the Bill to support introduction of longer term rent control where this is needed.”

Will Scarlett, of Scarlett Land and Development, said the end of rent controls in Scotland could mean a window of new investment would be created.

He said: “We understand, informally, that current transitional rent control measures will not be rolled over or extended by Scottish Government after March 31, 2025, when they were always due to expire.

“If so, then from April 1, 2025 open market rent setting can return with no rent cap restriction.”

Mr Scarlett said that “this should remain the case until the Housing Bill legislation comes into effect in 2027 - with key rent control attributes expected to be made clear by late 2025, possibly to include some form of qualified exemption for built-to-rent/mid-market rental subject to a consultation exercise due to commence in April 2025”.

He added: “This looks like positive news for residents in Scotland and suggests that the Scottish Government are on track for long-term rent control legislation that is far more acceptable to institutional investors.

“This would mean that large-scale investment into rental housing (of all tenures), which stopped overnight in September 2022, should return, meaning homes, efficient carbon neutral homes, lower running costs, professional owners/operators. More supply: lower rents.”

David Alexander, chief executive of DJ Alexander Scotland Ltd, said: “Everybody involved in the private rented sector (PRS) has been frustrated at the uncertainty of the Scottish Government’s policy on rent controls. But this announcement, coupled with a proposed consultation including consideration of how new housing built specifically for private rent – including in mid-market rent and other purpose-built private rented accommodation – should be treated is to be welcomed.

“This should encourage a return of investment in the sector and the potential for a rapid increase in the number of new homes being built for the private rented sector. This is a positive development for landlords, investors and tenants who will all benefit from an increase in the volume of properties being brought into the market.”

Mr Alexander added: “This is a very positive development and is a clear sign that the Scottish Government is listening to the private rented sector and going some way to encourage growth to ensure landlords and investors can be more certain of the viability of their investment, and tenants can be comforted at the prospect of a substantial increase in the supply of homes to rent.”

However, the tenants’ union Living Rent has raised concerns over the move and Shelter Scotland has called for more social homes to ease shortages.

Alison Watson, Shelter Scotland director, said: “Rising rents in the private sector continue to put pressure on renters, demonstrating the urgent need for more social housing.

“The housing system in Scotland is broken and we need to see action now. With rents skyrocketing to unaffordable amounts, along with the rising cost of living, many will be pushed to the brink of homelessness.”

She added: “With the country in the grip of a brutal housing emergency, the Scottish Government desperately needs to invest in delivering more social housing to permanently lower housing costs, invest in existing properties, and invest in local services to ensure lifeline housing rights are upheld.”

Ruth Gilbert, national campaigns spokesperson for Living Rent, said: “It is deeply irresponsible that this government is choosing to end the vital measures that have protected tenants from sky-high rent increases.

“As soon as these measures end on March 31, tenants are going to be hit by a tidal 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 2027. From now until then, tenants are faced with two years of completely uncapped rents. Landlords increasing rents, which will decimate our cities, force people out of their homes and further exacerbate both homelessness and poverty.”

She added: “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. They are celebrating the end of the rent protections as they know it will lead to a huge windfall for them.

“This government is deserting tenants and as a result, tenants will see rents skyrocket, an increase in homelessness and even greater pressure on social housing.”