Today, 1 April 2025, the Scottish Government’s temporary rent controls – originally introduced under emergency legislation during the cost of living crisis – have officially come to an end.
The expiration of these controls signals a shift in the private rented sector, creating a more flexible environment for landlords, investors, and Build to Rent operators. But with this change also comes increased responsibility – and the need to act with both commercial awareness and tenant sensitivity.
Background: Why Rent Controls Were Introduced
The Cost of Living (Tenant Protection) (Scotland) Act 2022 brought in emergency rent caps and restrictions on evictions to protect tenants during a period of economic uncertainty. Initially, this included a full rent freeze, followed by a 3% cap on increases, with limited exemptions up to 6%.
While these measures were always intended to be temporary, they significantly influenced how landlords operated – particularly those involved in delivering and managing new build homes across Scotland.
What the End of Rent Controls Means
With rent controls now lifted, landlords and agents are once again free to review rents in line with market conditions. This opens up opportunities for:
- Improved investment performance for BTR and new build rental schemes
- Increased viability of development appraisals, particularly in high-demand areas
- Flexibility in setting fair, market-led rents that reflect the quality and value of new homes
However, this flexibility should be approached with care. Rapid or aggressive rent increases could trigger tenant turnover, extended void periods, and reputational risks. The best long-term returns still come from well-managed, stable tenancies — supported by transparency, good service, and realistic pricing.
What’s Next? Longer-Term Reform on the Horizon
While temporary controls have ended, the direction of travel remains clear. The Scottish Government has introduced a new Housing (Scotland) Bill, with proposals to:
- Introduce a national system of rent controls by 2027
- Strengthen tenant rights and regulation
- Improve housing standards across both the private and social rented sectors
Highlight Housing is closely monitoring the progress of this legislation and its implications for clients, investors, and partners.
Our Perspective at Highlight
As a newly established Scottish letting agency with deep experience in affordable housing, new build sales, and operational delivery, we see this as a key moment for the sector.
The end of rent controls is not just a reset – it’s an opportunity to rethink how we deliver and manage homes. For those involved in Build to Rent, now is the time to:
- Plan rental strategy with a long-term view
- Invest in operational performance and tenant experience
- Build resilience ahead of future legislative change
We’re here to support clients in navigating this landscape, with insight, local knowledge, and a commitment to high standards.
If you’d like to explore how these changes might affect your current portfolio or a pipeline scheme, feel free to get in touch.