Rent cap for Scottish secure tenancies and short Scottish secure tenancies
58.Paragraph 3 makes provision in relation to Scottish secure tenancies and short Scottish secure tenancies. On or after 6 September 2022, a landlord under a Scottish secure tenancy or short Scottish secure tenancy may not increase the rent payable under the tenancy by more than the permitted rate, which is initially set at 0%. Any rent increase notice given on or after 6 September 2022 has no effect. In addition, any rent increase notice that is given at a time when the permitted rate is 0% is of no effect (see sub-paragraph (3)).
59.The provision does not affect a landlord’s ability to increase any charge other than rent that is payable under a Scottish secure tenancy or a short Scottish secure tenancy.
60.The Scottish Ministers may, by regulations, change the permitted rate. A landlord may not give a rent increase notice if it increases the rent payable under the tenancy by more than the permitted rate.
61.Paragraph 3(3) (see new section 25(7) of the 2001 Act) confirms that the provisions do not preclude social landlords from consulting their tenants.
62.Note that, while the provisions refer to Scottish secure tenancies, they additionally apply to short Scottish secure tenancies by virtue of section 34(6) of 2001 Act.