Scotland's rent controls: what investors in Glasgow and the central belt need to know

Scotland · 5 min read · Published 1 October 2026 · Updated 2 October 2026

In short: the Housing (Scotland) Act 2025 lets Scottish Ministers designate rent control areas, where rent increases, both during a tenancy and between one tenancy and the next, would be capped at CPI inflation plus 1%, with a maximum of 6% a year. The framework has been live since 1 April 2026, but no rent control area has been designated. Councils must first assess their local rental markets and report to ministers by 31 May 2027, so the earliest realistic date for caps in any area is later in 2027. Until then, rents for new tenancies are set by the market, and in-tenancy increases follow the existing private residential tenancy rules.

How the rent cap would work

In a designated area, the cap applies to rent increases on private residential tenancies both during a tenancy and between tenancies, so a landlord could not simply reset the rent to market when a tenant leaves. If CPI inflation were 3%, the maximum increase would be 4%. If inflation were 7%, the cap would still stop at 6%. Increases can happen only once in any 12-month period, with none in the first year of a tenancy. A designation can last up to five years, and councils must reassess their markets every five years.

Ministers can only designate an area if they are satisfied controls are necessary and proportionate to protect tenants, and only after consulting councils, landlords and tenants. The Scottish Government is still developing the regulations on exemptions and on how landlords could apply for increases above the cap, for example after significant improvement works between tenancies.

What changes, and when

What the market is doing

Scottish rents have already slowed sharply. ONS figures published on 16 September 2026 show average private rents in Scotland up 1.1% in the year to August 2026, to £1,013 a month, against 4.0% in England. In Glasgow the rise was 1.3%, and in South Lanarkshire, which includes East Kilbride, also 1.3%.

In other words, current rent growth is already well inside a CPI plus 1% cap. For many central-belt investors, the cap itself would not bite at today's levels. The bigger risk is the uncertainty, and the effect that has on landlords deciding whether to stay or sell.

We look at the wider numbers across the UK in UK rents and house prices in autumn 2026.

What it means for investors

• Price the rent properly now. Because a designation would cap increases between tenancies too, the rent a property is let at when an area is designated becomes the base for years. A rent left well below market is hard to catch up later.
• Keep records of improvements. Any route to an above-cap increase is likely to depend on evidence of real upgrades, so keep invoices and before and after records for significant work.
• Value yield over rent growth. A Scottish purchase should work on today's rent and modest increases. Deals that rely on rapid rent growth are the ones most exposed.
• Watch the 2027 assessments. Glasgow City Council's assessment will be the one to read for the city; designation decisions will follow from them.
• Mind wrongful termination. Using an eviction ground falsely, for example claiming you will sell and then re-letting, now risks an order of up to 36 months' rent.

None of this changes the core case for central Scotland that many of our investors buy into: lower entry prices than most of England, steady tenant demand, and no 2% non-resident surcharge on purchase tax. It does mean buying on the rent a property achieves today.

This guide is general information for landlords in Scotland, not legal or investment advice. Regulations and dates are still being set; check the current Scottish Government guidance and take your own advice.

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