Scottish landlords are increasing rents faster than anywhere else in Great Britain, according to new research from Hamptons. The analysis shows 67 percent of Scottish landlords raised rents this year, compared with 58 percent across Great Britain. The findings suggest rent controls have reshaped market behaviour rather than slowed rent growth, raising concern among landlords as similar policies are discussed in England and Wales.
Rent controls reshape landlord decisions – not affordability
Hamptons used data from across the Connells Group rental network to assess the impact of Scottish rent caps and freezes. The firm found that rather than reducing pressures, the policy has encouraged routine annual rent rises.
David Fell, Lead Analyst at Hamptons, said the Scottish experience shows the challenge of policy-led price intervention.
“The evidence from Scotland suggests that rent controls rarely work as intended. At best, they delay rent increases; at worst, they set a new benchmark where landlords feel compelled to increase their rents every year by the maximum allowed.”
Fell added that uncertainty over future policy has driven landlords to adopt defensive pricing strategies.
“Faced with uncertainty over future rules, many landlords choose to raise rents little and often rather than risk falling far below market levels.”
Hamptons notes that rent rises were already more common in Scotland before recent interventions and continued during the period where rent rises were frozen at 0 percent and later restricted to 3 percent.
Rent rises accelerate under relaxed cap conditions
Since the rent cap eased in April 2024, newly agreed rents in Scotland have risen 7.3 percent, the second fastest rate of growth in Great Britain behind the North East of England. Over a five-year period, newly agreed rents in Scotland are up 36 percent, compared with 32 percent across Great Britain.
Renewals follow the same pattern. Scottish tenants renewing existing agreements are now paying 32 percent more than five years ago, compared with 39 percent across Great Britain.
Hamptons warns that this two-tier system – with regulated renewals pushing pressure into new lets – risks embedding rent volatility and discouraging long-term investment.
Elsewhere rents soften as demand eases
While Scotland continues to see upward pressure, rents across Great Britain have fallen for the third consecutive month. Newly let rents slipped 0.5 percent year-on-year to £1,399.
London has seen the steepest adjustment:
- Inner London average rent: £2,795, down £135 year-on-year
- Outer London: ongoing decline since summer 2025
Other regions show a milder pattern:
- South East: 0 percent annual change
- South West: 0.3 percent growth
- East of England: 0.8 percent rise
Tenant demand is also cooling, with 12 percent fewer renters searching in October compared with last year, while available supply increased 8 percent.
However, renewal tenants continue to pay more, with renewals up 4 percent year-on-year, including 3.2 percent growth in London.
Mary-Lou Press, President of NAEA Propertymark, said clarity will be key for market confidence.
“While efforts are supported to ensure stability and fairness within the housing market, continued rumours of major reforms risk undermining confidence and discouraging transactions.”
Editor’s view
The Scottish rental market has become a real-time case study in unintended policy consequences. Instead of stabilising rents, intervention appears to have accelerated yearly increases and pushed landlords toward defensive decision-making. For UK landlords outside Scotland, the message is clear: poorly designed regulation rarely improves affordability and often reduces supply. The next question is whether policymakers will study the evidence or repeat the experiment.
Author: Editorial team – UK landlord and buy-to-let news, policy, and finance
Published: 17 November 2025
Sources: Hamptons Rental Market Report – Connells Group data – ONS Private Rental Index – Propertymark
Related reading: Khan pushes rent control powers despite government resistance
