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Scottish PRS rent-cap approved

Scotland’s private landlords will be permitted to raise rents on existing tenancies by up to 3 per cent from 1 April but must use government-approved templates to give the required notice.

This follows passing by the Scottish Parliament of changes to the Cost of Living (Tenant Protection) Act, legislation that gives ’emergency protections for tenants’.

The changes cap private rent increases at 3 per cent but allow landlords to apply to the Rent Service Scotland to raise this to 6 per cent so as to recoup some of their own increased costs. These include higher mortgage interest and landlords’ insurance costs, and higher service charges when paid as part of a tenancy.

The ban on most evictions has been extended for a further six months with increased damages of up to 36 months’ worth of rent specified for unlawful evictions.

‘Provided they remain necessary’, these changes will remain in place until 30 September, with the option to extend for another six-months ‘if required’.

The rent cap for student accommodation is to be suspended.

Landlords must wait until 1 April 2023 to issue any rent increase notices, the Scottish Association of Landlords has told its members.

‘The government has now amended the PRT rent increase notice template and the updated version can be found here. The AT2 notice used for rent increases on any assured/short assured tenancies which don’t have provision for rent increases in the tenancy terms has also been amended and can be found here. The new templates must be used for any rent increase notices issued from 1 April 2023 onwards.

‘Alternatively, from 1 April 2023 landlords can apply to the rent officer for an increase of up to 6 per cent to cover increases in prescribed property costs incurred in the six months leading up to the application being made. Guidance on how to do this can be found in our factsheet here‘.

‘Our emergency legislation has given tenants across the rented sector additional protection as we continue to live through these challenging and uncertain economic times’, said Tenants’ Rights Minister Patrick Harvie.

‘It is clear that many households in the private rented sector in particular continue to struggle, which is why we are capping in-tenancy rent increases in the private sector at 3 per cent from next month, with safeguards in place recognising the effects the cost of living crisis may have on some landlords. Our restrictions on evictions will continue across all sectors.

‘We will continue to keep these measures under review, ensuring they remain necessary and proportionate to the challenges at hand’.