A well-known property market expert has warned that rent caps are not a real fix for rising rents. At best, they push increases back for a short time, but they do not stop them.
David Fell from Hamptons says the situation in Scotland shows that rent controls rarely work as intended. He explains that rent caps often lead landlords to raise rents every year by the full amount allowed, just to avoid falling behind the market. With future rules still uncertain, many landlords prefer making small, regular increases rather than risking a large gap between what they charge and the current market rate.
He also points out that although the Renters Rights Act will give tenants more power to challenge rent rises, caps themselves only act as a temporary solution. In the long run, he says the only way to make renting more affordable is to build more homes and increase competition among landlords.
Fell’s comments follow an in-depth review of Scotland’s rent control policies. Using data from the Connells lettings group, Hamptons found that landlords in Scotland were more likely to raise rents than those in England and Wales in both 2024 and 2025.
This year alone, 67% of Scottish landlords increased rents when they could, compared with 58% across Great Britain. Scotland also saw strict limits: from late 2022 to early 2023 rent rises were frozen, then capped at 3% for the following year. Since April 2024, increases have been restricted to whichever is lower—market rent, the landlord’s proposed rent, or the ‘permitted rent’ for tenants paying at least 6% below market value.
This system means rent rises can be tightly restricted, especially for tenants far below market levels. As a result, more landlords are opting for smaller annual increases to keep rents closer to the going rate.
Where landlords did raise rents, the average increase in Scotland was 10.1%, slightly lower than the 12.2% Great Britain average. But because more Scottish landlords chose to increase rents, overall rent growth ended up higher.
Since mid-2025, rents for new lets in Scotland have continued to rise, even as prices in the wider Great Britain market have fallen. Scottish rents grew by 2.5% year-on-year and were among the fastest rising in the UK.
After the 3% cap was relaxed in April 2024, newly agreed rents in Scotland jumped by 7.3%, one of the highest regional increases, second only to the North East of England. Over the long term, new rents in Scotland have risen 36% in five years, compared with 32% across Great Britain. Renewals followed a similar pattern, rising 32% in Scotland over five years versus 29% across Great Britain.
Only a small number of disputes—around 1,000 cases a year—reach Rent Service Scotland. These usually involve tenants who are paying far below market value. The average proposed increase in these cases was 20%, but Rent Service Scotland judged market rates to be around 23% higher. With rent controls applied, the average increase was brought down to 9%.
Looking ahead, the possible introduction of ‘Rent Control Areas’ from 2027 is expected to have a similar effect. These areas may cap rents at CPI + 1%, with a maximum of 6%. Current trends suggest landlords may raise rents now while they still have more flexibility, anticipating future restrictions.
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