Rent controls restrict when, or by how much, a landlord can increase the rent charged for a property.
The rules can take several forms. Some limit increases during an existing tenancy, while others continue to apply when one tenant leaves and another moves in. Controls may operate nationally or only in designated areas, with exemptions for certain properties.
Scotland now has legislation allowing long-term rent controls to be introduced in selected areas. England does not currently have comparable local rent control areas, although the Renters’ Rights Act 2025 regulates how and when rent can be increased during a tenancy.
This article covers England and Scotland. Different rules apply in Wales and Northern Ireland.
How will rent controls work in Scotland?
The Housing (Scotland) Act 2025 allows Scottish Ministers to designate Rent Control Areas where evidence shows that restrictions are necessary and proportionate.
Since 1 April 2026, local authorities have been required to assess rent conditions in their areas. Their first reports must be submitted to Scottish Ministers by 31 May 2027.
A Rent Control Area can only be designated following an assessment and consultation. A designation can last for a maximum of five years and must remain under review.
This means that no area is automatically subject to a rent cap simply because the legislation has been passed.
What will the Scottish rent cap be?
For applicable private residential tenancies in a designated Rent Control Area, rent increases will ordinarily be limited to Consumer Prices Index inflation plus one percentage point, subject to an overall maximum increase of 6%.
The restriction will apply:
- During an existing tenancy
- Between tenancies
- No more than once in any 12-month period for the same property
There are exemptions. For example, the cap will not apply when the rent is set at the start of a new tenancy if the property:
- Is completely new to the private rented sector
- Was purchased with vacant possession and is being let for the first time since that purchase
- Has not had a relevant private residential or assured tenancy during the previous 12 months
Mid market rent properties and some build to rent properties are also exempt. Further regulations may allow increases above the cap in limited circumstances.
Landlords should check the latest requirements before proposing an increase, particularly as the first Rent Control Areas are considered.
Does England have rent controls?
England does not currently have geographically designated rent caps equivalent to the Scottish model.
However, rent increases for assured periodic tenancies have been regulated under the Renters’ Rights Act 2025 since 1 May 2026.
Landlords must:
- Use the statutory rent increase procedure and Form 4A
- Give the tenant at least two months’ notice
- Wait at least 12 months between rent increases
- Propose a rent that reflects the open-market rate
Rent cannot be increased during the first 12 months of a new tenancy. A tenant can also challenge a proposed increase if they believe it exceeds the open-market rent.
Landlords and letting agents must advertise a specific asking rent and cannot encourage or accept offers above that amount.
These measures regulate rent increases and rental bidding, but they do not impose a general percentage cap across England.
What could rent controls mean for landlords?
More stable tenancies
Greater certainty over future housing costs may encourage tenants to remain in their homes for longer.
A successful long-term tenancy can also benefit a landlord by reducing reletting costs, administration and periods when the property is unoccupied.
Restrictions on rental income
In a designated Rent Control Area, a landlord may be unable to increase the rent by the amount that local market conditions would otherwise support.
Landlords may therefore need to consider the possible effect of rent controls when planning expenditure, forecasting returns or assessing a potential investment.
Changes to rental property supply
Evidence reviewed by the Institute for Fiscal Studies suggests that rent controls can sometimes encourage landlords to sell or move properties into other uses. This can reduce the number of homes available to rent.
The outcome will depend on how the controls are designed, where they apply and which properties are exempt.
Greater demand for available homes
If rents are restricted below the level the wider market would otherwise support, more tenants may apply for the available properties. This could make it harder for some applicants to secure a suitable home.
Possible effects on investment
Some investors may decide that projected returns no longer justify purchasing or developing rental accommodation. Exemptions for certain new properties are sometimes used to reduce this effect.
Pressure on property improvements
Landlords must always meet their legal repair and safety responsibilities. However, limits on rental income could affect the money available for optional improvements or upgrades beyond those requirements.
Reduced tenant mobility
A tenant paying a controlled rent may be reluctant to move if comparable properties are more expensive or difficult to find. This could make moving harder when a household’s needs change.
Rent controls involve trade offs
Rent controls can improve affordability and provide greater certainty for tenants living in a controlled property. However, the wider evidence suggests that their design can also affect rental supply, investment, property availability and tenant mobility.
For landlords, the practical effect will depend on the property’s location, tenancy type and eligibility for any exemptions.
Landlords with properties in Scotland should follow developments as local authorities complete their assessments and potential Rent Control Areas are considered. Wherever a property is located, landlords should check the rules that apply before proposing a rent increase.
How Your Move can help landlords
Setting the right rent involves more than choosing the highest possible figure. Landlords also need to consider current legislation, local market conditions, tenant demand and the value of retaining a reliable tenant.
Your Move’s local lettings teams can help landlords by:
- Providing an up to date rental valuation based on local market conditions
- Sharing insight into tenant demand and comparable properties
- Helping landlords understand the rent increase process that applies to their tenancy
- Supporting clear and professional communication with tenants
- Assisting with tenancy administration through our management services
- Keeping landlords informed about relevant changes affecting the rental market
This support can help landlords make informed decisions, manage their properties more efficiently and avoid handling every stage of the letting process alone.
Speak to your local Your Move lettings team to discuss your property, current rental value and the landlord services available in your area.
Speak to your local lettings team
The information in this article is intended as a general guide and does not constitute legal advice. Legislation and guidance may change. Landlords should check the latest government guidance and obtain professional advice where necessary.
Your Move Emarketing Executive
