Rob Trotter: Why landlords are being forced to raise rents - and why the worst is still to come

Rob Trotter: Why landlords are being forced to raise rents - and why the worst is still to come

Rob Trotter

As rent increases ripple across Scotland, Rettie’s Rob Trotter argues that landlords are acting now to avoid being locked into long-term losses later.

Rent increases are appearing across Scotland—but this isn’t just a short-term reaction to the lifting of rent controls on April 1st. It’s the start of a much bigger, longer-term issue that could affect tens of thousands of tenancies over the next two years.

Yes, landlords are raising rents - but not just because they now can. They will do so because they fear they soon won’t be able to.

The Scottish Government has signalled its intention to introduce tighter rent controls in 2027, despite contradictory evidence. These proposals would prevent landlords from resetting rents to market value when a tenant leaves. Instead, rents would stay fixed, rising only annually in line with CPI - even between tenancies.

This fundamentally changes how landlords must manage their properties. If they don’t raise rents to market levels by 2027, they risk being locked into unsustainable rates for years.

As a result, many landlords are now reviewing rents, with the majority of increases still to come. Crucially, this isn’t about greed. Most landlords prefer to keep good tenants and apply modest, fair increases. But the threat of “between tenancy” rent controls makes that approach financially risky.

Even council rent officers are supporting this shift. If a tenant challenges a rent increase and the officer finds the proposed rent is actually below market value, they are required to raise it further - to full market value. This policy is designed to deter baseless referrals, but it also shows that market rents are not only acceptable - they’re being encouraged.

Behind all of this lies a political strategy. Scotland’s growing tenant population is an attractive voting bloc, and every new restriction wins easy applause, especially when landlords are cast as villains. Politicians gain popularity by appearing to “bring landlords under control.”

In reality, the market is already beginning to rebalance. Rent inflation is easing, with rents stabilising as interest rate pressures soften. If left alone, the sector would likely find its own footing.

Instead, we’re heading down a dangerous path. The government’s proposed controls will fuel rent hikes that wouldn’t otherwise be necessary. Worse, these increases will later be used to justify the very policies that caused them. Politicians will point to current rent increases as evidence that controls are needed - “See! We lifted rent caps in 2025 and landlords hiked up rents.”

We’ve entered a self-fulfilling cycle of political interference in a functioning market.

Without the looming 2027 restrictions, landlords would continue to show restraint. But now, many feel they have no choice. The result will be a wave of pre-emptive rent increases - not because landlords want to charge more, but because government policy leaves them no alternative.

Once political interference enters a market sector - especially one as politicised as Scotland’s Private Rental Sector - it becomes extremely difficult to reverse. The Scottish PRS is now firmly trapped inside a political theatre.

  • Rob Trotter is director of new business, lettings at Rettie
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