Landlords in Scotland are more likely to raise their tenants’ rents than those in any other region – despite being subject to Government-imposed rent controls.
Analysis by estate agent Hamptons of Connells Group data, revealed that 67 per cent of Scottish landlords have hiked their rents so far this year, compared to 58 per cent across Britain as a whole.
In the West Midlands and East of England, 62 per cent of landlords have increased rents this year while in Yorkshire & Humber and the South West, 51 per cent of landlords raised rents.
Rent controls in Scotland were introduced in 2022. Between September 2022 to April 2023, rent increases for existing tenancies were capped at 0 per cent, and from April 2023 to April 2024, increases were capped at 3 per cent.
This percentage cap ended in 2024, but since then rent increases have been limited to the lowest of the ‘open market rent,’ the rent proposed by the landlord, or something called the ‘permitted rent’ in the event that the tenant is paying at least 6 per cent below the market rate.
As the amount Scottish landlords can raise rents by is limited, it appears they are opting to increase them little and often, in many cases once every year.
David Fell, lead analyst at Hamptons, said: ‘The evidence from Scotland suggests that rent controls rarely work as intended.
‘At best, they delay rent increases; at worst, they set a new benchmark where landlords feel compelled to increase their rents every year by the maximum allowed.’
While landlords in Scotland are more likely to increase rents, the amount they raise them by is typically lower than their English counterparts.
For those landlords who did raise their rent, the size of the average increase was lower in Scotland at 10.1 per cent, compared to the UK average of 12.2 per cent.
Nevertheless, Scotland’s overall average rental growth is higher as a greater share of landlords in Scotland chose to increase rents over the last year.
Since June 2025, the pace of rental growth on new lets has picked up in Scotland, despite rents falling across Great Britain.
Scottish rents rose by 2.5 per cent from the same time last year, one of only two regions in Britain where rents rose by more than 2 per cent over the last year, Hamptons said.
Newly-agreed rents in Scotland are up 36 per cent over the last five years, higher than the 32 per cent increase across Great Britain.
It’s a similar story for renewals too, with the average cost of renewed contracts rising 32 per cent over the last five years in Scotland compared to 29 per cent across Great Britain.
Rents falling in England
Over the past year, the average monthly cost of a newly-let home fell by 0.5 per cent to £1,399, according to Hamptons.
A year ago, rents reached their all-time peak of £1,406 a month nationally.
Rents have been falling in Inner London since the beginning of this year and now stand at £2,795 on average, some £135 a month below their peak last year.
Rents in Outer London have been following this downward path since the summer.
Rents in the South East of England were flat compared to last year, while in the South West, rents are up just 0.3 per cent.
Evidence suggests rents may fall in other regions across the South of England in the coming months, according to Hamptons.
In October, there were 12 per cent fewer tenants looking for a new home nationally, a metric which has been negative for the past three months in all three southern regions outside London.
Meanwhile, there were 8 per cent more homes available to let in October than 12 months ago.
What will the Renters’ Rights Act do to rents?
Last week, the Government announced the long-awaited Renters’ Rights Act will come into force from 1 May next year.
The huge shake-up has delivered England’s 11 million private renters the greatest increase to their rights in a generation.
Aside from ending Section 21 ‘no-fault’ evictions, the law gives renters the right to end tenancies with two months’ notice and enables them to better challenge poor conditions and unreasonable rent increases without fear of retaliatory eviction.
‘While the Renters’ Rights Act will give tenants more time and power to challenge rents at tribunal, the evidence suggests caps are only a sticking plaster,’ said David Fell of Hamptons.
‘Longer term, the only way of making rents more affordable is to increase the number of homes available to rent and boost competition among landlords for tenants.
‘Despite rents falling annually for the third straight month, landlords are still managing to agree above inflation increases when it comes to contract renewals.
‘Typically, these are reducing the gap that opened up over the Pandemic between what tenants are currently paying, and what the property would achieve if it was re-let to a new tenant.’
