Landlords in Scotland are preparing for the end of the temporary rent cap on 1 April, which many say has unfairly restricted their ability to cover rising costs. The Scottish Greens have urged the SNP-led government to extend the cap, warning that tenants could face steep rent increases once it expires. However, landlords argue that the cap has created an unsustainable rental market and that its removal is long overdue.
The rent cap, which limited most in-tenancy rent increases to 3%, was introduced in 2022 as part of emergency measures to protect tenants from the cost-of-living crisis. After its expiration in March 2024, a follow-on adjudication scheme was introduced, allowing tenants to challenge excessive rent increases — but capped at 12% if they appeal to a rent officer.
With the deadline approaching, landlords are optimistic about regaining more control over their rental income, which they say is essential to maintain the viability of the sector.
Landlords warn rent cap has created unsustainable market
Landlords have long criticised the rent cap, arguing that it has created an imbalance in the rental market, forcing some property owners to sell up or withdraw from the sector entirely.
A landlord from Edinburgh, who wished to remain anonymous, said: “The rent cap has made it almost impossible to cover rising costs. Maintenance, repairs, and mortgage payments have all gone up, but we’ve been stuck with artificially low rent levels. It’s just not sustainable.”
Nathan Emerson, chief executive of Propertymark, supported this view, stating: “The private rental market is under immense strain. Without the ability to adjust rents in line with market conditions, many landlords have simply left the market, reducing the availability of rental properties and driving up competition among tenants.”
Emerson added: “We need to stop vilifying landlords and start supporting them. They play a crucial role in providing housing — driving them out of the market helps no one.”
Greens warn tenants face ‘soaring’ rents
Scottish Green MSP Maggie Chapman has been vocal in her opposition to the rent cap’s removal, claiming it will open the door for landlords to impose steep increases.
“Unless the SNP acts, rogue landlords will be counting down the days until April 1st,” Chapman said. “The housing market is broken. We need more and better regulations if we are to tackle the rising cost of housing, not fewer.”
Chapman accused landlords of holding “too much power” over tenants, adding that the rental market leaves “far too many renters in insecure housing which can cost them over half their pay cheque.”
She also argued that the housing emergency will worsen unless rent controls are made permanent, saying: “We’ve been listening to renters and know that they can’t rely on good-natured landlords. This is our opportunity to put power back in people’s hands and guarantee quality, affordable housing.”
However, landlords have pushed back, arguing that rising costs and increased regulation are making it harder to remain in the sector. An East Lothian landlord explained: “If we can’t adjust rents to reflect inflation and rising costs, we’ll have no choice but to sell up. That’s going to reduce the number of properties available and push rents even higher.”
Government to explore long-term rent controls
Housing Minister Paul McLennan acknowledged the pressure on both tenants and landlords, confirming that protections will remain in place after the rent cap expires — but only in certain cases.
“From April 1, protections continue to be in place against rent increases above market rent for most private tenants,” McLennan said. “We would encourage tenants to make use of their right to a review of a rent increase.”
McLennan added that the government is considering longer-term measures through the Housing (Scotland) Bill to ensure a “fairer system for tenants.”
However, landlords remain concerned that future rent controls could discourage investment and shrink the private rental market further. Emerson cautioned that overregulation could backfire: “If the government makes it too difficult for landlords to operate, the market will contract, and tenants will have even fewer choices. We need to strike the right balance.”
