Cost of Living legislation: Rent Increase Update March 2023

The Scottish Government published their First Report to the Scottish Parliament on the Cost of Living (Tenant Protection) (Scotland) Act 2022 on 12th January 2023.

This laid out the Scottish Government’s intention to temporarily cap private sector rent increases, and as of 1st April until 30th September 2023, this cap will rise from 0% to 3%. In certain circumstances, landlords may apply for an increase of up to 6% (if sufficient evidence can be given proving that their property costs have risen considerably). It should be noted that any rent increase can only take place once every 12 months.

Enforcement of evictions will continue to be prevented for all tenants (specific circumstances may apply) and 36 months’ worth of rent will be due in damages for unlawful evictions.

Full details can be found here: The Cost of Living (Tenant Protection) (Scotland) Act 2022 (Amendment of Expiry Dates and Rent Cap Modification) Regulations 2023

Action points for landlords

In line with this legislation, and with thanks to Scottish Association of Landlords (SAL), we’ve pulled together the forms you may need:
>> Rent increase notice (PRT): a template notice to be used to increase the rent on a Private Residential Tenancy
>> AT2: use for rent increases on any assured/short assured tenancies which don’t have provision for rent increases in the tenancy terms

A note from Laura, Managing Director

“Whilst all legislation is nuanced and complex, we stand with SALin their action to protect landlords and lettings bodies who have been disproportionately affected by the Act.

I’m always glass half full, so let’s start with the good news. There is an overwhelming demand from tenants in Aberdeen, with no signs of slowing down. Tenant enquiries in Aberdeen are almost double compared to last year and we’re seeing multiple applicants for every one rental property coming to our books. This means we’re in the fortunate position of ensuring that we can match the right tenant to the right landlord.

Also, we’ve seen a lot of change over the past few years, including a rise in demand (and rent) for rural properties as COVID-19 opened the doors to hybrid and working-from-home opportunities.

Scottish landlords are however heavily regulated. You must be compliant with many legislative demands including (but not exhaustive), landlord registration, energy performance certificates, repairing standards, smoke & fire alarm legislation, electrical installation condition reports, gas safety certificates, carbon monoxide alarms, legionella risk assessments, HMO assessment sand compliance with the safe deposit scheme. The most recent Scottish Parliament’s Cost of Living (Tenant Protection) (Scotland) Act 2022, has also brought in new legislative pressures with the recent freeze on eviction orders and a rent freeze. With all these legislative changes and demands, this has been a really difficult time for landlords, especially as we know how many of our landlords continually wish to invest in their properties and strive to create homes and an excellent long-term relationship with their tenants.

These legislations changes and demands are putting enormous strain on landlords, as we know only too well as more and more landlords are being forced out the market and selling their property – inclusive of those who are working abroad or have inherited a property as well as buy-to-let investors. We’re seeing these clients daily who are making the tough decision to sell rather than continue to rent privately. With more and more Landlords leaving the private rented sector, the more pressure there is on housing stock and tenant rents. This is why we stand with SAL, so that the balance can be restored.”

Laura Means, Managing Director
Laura Means, Managing Director

You’re in safe hands at Northwood

Legislation and policy are continuously changing. It can be time-consuming and stressful to keep legally compliant with the requirements, as well as dealing with tenant queries, maintenance, rent collection, arrears and on any tenant complaints that may arise.

Here at Northwood, we offer a Guaranteed Rent service, where we, Northwood, become your ‘perfect tenant’. We will manage all aspects of your rental property from tenant queries and maintenance to guaranteeing that your rent that will paid on time, each month for a minimum period of 12 months – even if your property is vacant or there are rent arrears. Safe in our hands, let Northwood take the risk whilst you enjoy the return on your investment.

We can also provide a full managed service, which includes the same management of your property without the guarantee of rent.

So, if you’re considering letting your property for the first time or you wish for a letting agent to take the strain and ensure you are compliant, we’d love to chat.

Give us a call today on 01224 218450 or register here to get a free no obligation valuation.

Aberdeen: 01224 218450 | Inverurie: 01467 530591
Aberdeen: | Inverurie:
207-211 Rosemount Place, Aberdeen, AB25 2XS | 23 West High Street, Inverurie, AB51 3SA