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Housing (Scotland) Act 2025

Crown Application

Part 1 – Rent

Chapter 3 - Other restrictions on rent increases
Capping of rent increases on referral or appeal
Section 26 - Assured tenancies: capping of rent increase

91.This section modifies section 25 of the 1988 Act. Section 25 provides that, where a notice under section 24 of the 1988 Act (proposing a rent under an assured tenancy) has been referred to the Tribunal, the rent under the tenancy is (unless the landlord and the tenant agree otherwise) the rent determined by the Tribunal in accordance with section 25(1) of the 1988 Act (as the open market rent), together with the appropriate amount in respect of rates where section 25(4) applies.

92.Section 26 of the 2025 Act modifies section 25 of the 1988 Act so that, if the rent proposed in the notice that led to the referral to the Tribunal is lower than the rent that would otherwise be determined in accordance with section 25 (being the open market rent), the rent to be determined by the Tribunal as payable under the tenancy is to be the lower rent as specified in the notice.

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