April 1 marked the start of the new tax year, as well as the end of the 3% rent cap set by the Scottish Government. As of right now, renters have started to receive rent increase notices across Scotland, which would make most people slightly panicked amidst the cost of living crisis.
However, knowledge is power: just because you get hit with an increase, it does not mean you have no rights as a renter and just have to blindly pay up. So, we have put everything you need to know about rent increases into one place now that the rent freeze is over.
How much can my landlord increase the rent by?
In short, rent increases of up to 12% are allowed for private tenants, as long as the rent does not exceed the open market price. However, there is slightly more nuance to it.
The Scottish Government states: “If the gap between the market rent and the current rent is 6% or less, then the landlord can increase the rent by the proposed amount, as long as this is not more than the market level.”, meaning, increases of up to 6% are generally allowed given the market rate is the same.
Meanwhile, if the open market rent price is higher than 6% in difference, then the rent increase needs to be “6% plus an additional 0.33% for each percent that the gap between the current rent and market rent exceeds 6%”, according to The Scottish Government. The total amount after this cannot increase more than 12%.
For example, if the landlord believes the current rent difference to the open market is 8%, they could not raise the rent by more than 6.7% as per the explanation above.
How do I appeal my rent hike and what are my rights?
Firstly, any rent increases will need a three-month’s notice given to the tenant from the landlord, and cannot be raised more than once in 12 months.
Those who believe their increase is too high compared to the open market rate can appeal to either Rent Service Scotland or the First-tier Tribunal which will then set the rent independently.
Citizen’s Advice offers thorough information, as well as how to appeal on their website. Additionally, renters can speak to Citizen’s Advice, Shelter Scotland or Living Rent if they have any further doubts or need help filling out the forms.