Rettie Lettings Webinar - Navigating the Choppy Waters of the Lettings Market | Blog

The Scottish Government has confirmed the rent increase procedure which will apply when the rent cap legislation ends on 31st March 2024. It will allow for Landlords to increase rents and for Tenants to dispute increases.

The idea is simple enough, but the process isn't.

Our Live Webinar, hosted on the morning of Wednesday 21st February, was led by a panel of our experts to cover the changes in detail, with examples of what it might mean for you.

Hosted by our Commercial Director, Neil Cunningham, the webinar features a market update from our Director of Research & Strategy, Dr John Boyle, with detailed insight into the changes from Director of Lettings, Karen Turner and Director of New Business - Lettings, Rob Trotter.

We covered both the Long Lets & Short Lets Markets, with an opportunity for questions from the audience.

Following up on our webinar Q&A session with our panel of experts, we have now collated and responded to any questions, which you can view below:

Question + Answer

Can a rent increase by 90%? I moved to my current flat during COVID. The rent remained the same since 2020 and last week I received a notice of a 90% increase retroactive to January.
No – the max is capped at 12%.
Is the process for rental increases the same if you buy a property with a tenant in-situ?
Yes – it will be dependent on when the last increase of rent was – if less than 12 months ago then no.
If a rent has been increased by only 3% in last 3 months can it be increased again from April onwards.
No – you will be required to wait for a further 12 month period. Tenants cannot have more than one increase in any 12-month period.
Are there new rules re energy efficiency for private rentals? If so, how will this be implemented for old tenement properties particularly where planning is covered by conservation requirements?
Yes it is under consultation at the moment, but looking to come into force in 2028. The Scottish Government has been planning to introduce a minimum energy efficiency standard for properties in the private rented sector (PRS), and over that time plans and proposed introduction dates have changed.
The Scottish Government has published a consultation which sets out new proposals to improve the energy efficiency of all properties in Scotland – both in homes and non-domestic buildings. The Scottish Government is inviting views on its proposals which can be submitted by 8 March 2024 at - 　
https://consult.gov.scot/energy-and-climate-change-directorate/proposals-for-a-heat-in-buildings-bill/　　
Can I ask your opinion very quickly re the EPC C mandatory changes in 2025. How likely do you think it will be that a listed property will get an exemption?
There is no clear guidance on exemptions as of yet. It is under consultation for 2028 – see question and answer above. It has been postponed for 2025.
What is the likelihood of getting a short term rental licence for a flat in Edinburgh on a ground floor with private access?
It will largely be dependent on the type of licence you apply for and whether planning is required or not.
Is it the case that the new Rent Controls are still temporary measures that we expect to be fully be superseded by the new Housing Bill? Any update on the likely controls in the Bill?
This new rent control regime will be reviewed again in 12 months. On this basis all we can be assured of is that it will remain in place until 31st march 2025. Thereafter it could be extended or amended.
There is no talk of reviewing the end of the eviction moratorium which we therefore assume is a permanent end to this restriction.
If you increase by 12% then the tenant leaves can you increase it to market value for the new tenant?
You can increase the rent to full market value when a tenant leaves. There are no restrictions on how much a property can be re-listed on the market after regaining vacant possession.
Has this come too late to reassure PRS landlords that PRS is viable in Scotland and will we see large build to rent operators revisit schemes that the government legislation made them mothball?
BTR schemes have been put on hold since the rent freeze was announced in Sept 2022. Only a small proportion of the BTR pipeline in Scotland (c.12%) is actually built and operating. The uncertainty created by the emergency legislation has caused many schemes to be postponed or investors to look elsewhere.
The institutions remain interested in Scotland, but we need to create a regulatory environment that encourages them rather than scares them off.
Could you please confirm if the PBSA (purpose built student housing) needs to follow these licensing and rental growth rules?
PBSA is not covered by the Scottish Private Residential Tenancies Act and is not covered in the emergency legislation on rent control. However, PBSA may face further regulation in the new Housing Bill.

Our audience interacted on a few poll questions, as you can see below alongside the results of these poll's.

We asked, do you believe that the current proposed rent controls will result in an increased supply of homes for rent?

We had 154 responses.

We also asked, which of the following do you think are the best solution(s) to the current rental crisis (select all that apply)?

Graph showing the options for the best solution to the current rental crisis.

We had 169 responses.

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Rettie Lettings Webinar - Navigating the Choppy Waters of the Lettings Market

Following up on our webinar Q&A session with our panel of experts, we have now collated and responded to any questions, which you can view below:

Our audience interacted on a few poll questions, as you can see below alongside the results of these poll's.

We asked, do you believe that the current proposed rent controls will result in an increased supply of homes for rent?

We also asked, which of the following do you think are the best solution(s) to the current rental crisis (select all that apply)?

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