"The evidence from Scotland suggests that rent controls rarely work as intended. At best, they delay rent increases; at worst, they create a new benchmark where landlords feel compelled to increase rents annually by the maximum allowed"
- David Fell - Hamptons
Scottish landlords are increasing rents more frequently than their counterparts in England and Wales, despite rent controls introduced in 2022, according to newly released data from Hamptons.
So far this year, 67% of landlords in Scotland have raised the rent when they have had the ability to do so, the highest figure across Great Britain and above the national average of 58%.
Rent controls were introduced during the Covid pandemic to limit annual increases. Between September 2022 and April 2023, increases for existing tenants were capped at 0%. From April 2023 to April 2024, rises were limited to 3%. Since April 2024, increases have been set at the lowest of:
The open market rent
The rent proposed by the landlord
The permitted rent for tenants paying at least 6% below the market rate
These regulations limit the scale of increases for tenants paying below market rates, prompting landlords to implement small annual rises to keep rents closer to market levels.
Although a larger share of landlords in Scotland raise rents, the size of the average increase is lower than in the rest of Great Britain. The typical increase in Scotland was 10.1%, compared with 12.2% nationally. Despite smaller rises per property, overall rental growth is higher in Scotland because more landlords are increasing rents.
Since June 2025, rents on new lets in Scotland have risen 2.5% year-on-year, one of only two regions in Great Britain to exceed 2%. Since the 3% cap on increases was loosened in April 2024, new let rents have risen 7.3%, second only to the North East of England. Over the last five years, newly agreed rents in Scotland are up 36%, compared with 32% across Great Britain. Renewals have also risen faster, with a 32% increase in Scotland compared with 29% nationally.
Fewer disputes between landlords and tenants reach Rent Service Scotland. Around 1,000 cases were heard in the year to April 2025, representing approximately 1% of landlord-tenant relationships. Most disputes involve tenants paying well below market rates. Analysis of these cases shows the average proposed rent increase was 20%, with the fair market rent assessed at 23% above current levels. Rent controls reduced the average increase to 9%.
The potential introduction of Rent Control Areas from 2027 could limit future rises to CPI+1%, with a maximum increase of 6%. Evidence suggests landlords are raising rents now in anticipation of these limits, to avoid being restricted in the future.
National rental trends
Nationally, rents on newly let homes have fallen for the third consecutive month on an annual basis. In the 12 months to October 2025, the average cost of a new let fell 0.5% to £1,399, marking one year since peak rents of £1,406.
In London, rents have fallen sharply, with Inner London now averaging £2,795, £135 below last year’s peak. Outer London rents have followed a similar downward path since the summer.
Rents in the South East were flat at 0.0%, while the South West grew 0.3% and the East of England 0.8%.
Tenant demand is softening, with 12% fewer people searching for a new home nationally in October.
Meanwhile, the supply of available rental homes increased by 8% compared with last year.
Despite falls for new lets, rents for renewals continue to rise. Across Great Britain, the average renewed contract increased 4.0% year-on-year, reaching £1,310 per month. In London, renewal rents rose 3.2% even as new let rents declined.
“The evidence from Scotland suggests that rent controls rarely work as intended," comments David Fell, lead analyst at Hamptons. "At best, they delay rent increases; at worst, they create a new benchmark where landlords feel compelled to increase rents annually by the maximum allowed. Faced with uncertainty over future rules, many landlords choose to raise rents little and often rather than risk falling far below market levels."
He added, “While the Renters’ Rights Act gives tenants more time and power to challenge rents at tribunal, caps are only a temporary measure. The long-term solution to affordability is to increase the number of homes available to rent and boost competition among landlords.
“Despite rents falling annually for the third straight month, landlords are still managing above-inflation increases on renewals, gradually closing the gap between what tenants are currently paying and what a property would achieve if re-let to a new tenant.”
