Rent cap and eviction moratorium

The Scottish Government has advised that, subject to the approval of parliament, it will extend the provisions of the Cost of Living (Tenant Protection) (Scotland) Act 2022 to 31 March 2024. This is the legislation which introduced a cap of 3% on most rent increases and a delay of 6 months on the enforcement of most eviction orders granted by the tribunal. This is the final extension permitted by the 2022 Act. There are no plans to change the current rent cap of 3% or the rent increase amount that can be achieved through application to the rent officer of 6%.

A statement of reasons setting out why the Scottish Government believes it is necessary and proportionate to extend the measures to 31 March 2024 can be found here.

The Act, which came into force on 28 October 2022, aims to:

protect tenants by stabilising their housing costs through the introduction of a temporary, variable rent cap;
where possible, during the cost crisis, reduce impacts on the health and wellbeing of tenants caused by being evicted and/or being made homeless by giving them more time to find alternative accommodation;
seek to avoid tenants being evicted from the private sector by a landlord wanting to raise rents between tenancies during the temporary measures of a moratorium on evictions; and
increase the level of damages that may be awarded where a landlord carries out an unlawful eviction.
The Scottish Association of Landlords has mounted a legal challenge to the 2022 Act and we are expecting a decision from the Court of Session on the outcome of the court case within the next few weeks.

The basis of that appeal can be found here. https://scottishlandlords.com/news-and-campaigns/news/coalition-steps-up-court-fight-over-rent-control-and-eviction-ban/

In the period since the legislation was introduced, rental charges have increased considerably for new tenants, mainly due to the effect of higher interest rates and subsequent higher costs for the landlord, but this moratorium does not allow landlords with existing tenants to increase rents charged by anything above 3% (potentially 6% upon successful application to the Rent Service Scotland (RSS) to increase the rent for a let property above the rent cap in connection with defined ‘prescribed property costs’

As a consequence of this, most of you are receiving rental income from your properties which is way below “open rent market value” and this is why the coalition of Landlords and Letting organisations will continue to fight for fairness and justice.