Navigating the New Rent Increase Procedures in Scotland: A Breakdown From Chalmers Properties

Chalmers Properties Glasgow Letting Agent



The Scottish Government recently confirmed the procedures that will come into effect following the conclusion of the rent cap legislation on March 31, 2024. As Property Management & Letting Agents at Chalmers Properties, it’s crucial to understand these changes to ensure a smooth transition for both landlords and tenants.

Key Changes to Rent Increase Procedures from April 1, 2024

Starting April 1, 2024, landlords can propose rent increases of any amount in their notices. However, tenants retain the right to challenge proposed increases by referring the matter to a rent officer. The rent officer will then apply a tapering formula to determine the permissible increase.

Tapering Formula Overview: Striking a Balance

The tapering formula aims to strike a balance between landlord interests and tenant protection. Here’s a summarised breakdown:

  1. Market Rent Gap 6% or Less:
    • Landlords can propose an increase by any amount, as long as it doesn’t exceed the market level within the 6% gap.
  2. Market Rent Gap Exceeds 6%:
    • For gaps exceeding 6%, landlords can increase rent by 6% plus an additional 0.33% for each percent beyond 6%. However, the total increase cannot surpass 12% of the current rent.

    It’s important to note that the rent officer cannot set a higher rent than initially requested by the landlord.


Transition Period: Rent Increase Notices Issued Before March 31, 2024

Rent increase notices issued on or before March 31, 2024, are still subject to the existing cap of 3%. It’s crucial to factor this in when planning any pre-existing increases during this transitional period.


Accessing Resources: Online Calculator and Worked Examples

The government is set to release an online calculator to help both landlords and tenants determine the rent set by the rent officer. This tool will require inputting figures for the current rent and the market rent assessment for the property. Additionally, worked examples are available to provide practical insights into how the tapering formula operates.


Determining Market Rent: Tips for Landlords

To calculate the market rent, landlords can refer to comparable properties in the market or seek advice from Chalmers Properties regarding rental values. This ensures a fair and justifiable basis for proposing rent increases.


Exemptions: Assured and Short Assured Tenancies

It’s essential to note that the new procedures don’t apply to assured and short assured tenancies that contain a rent increase clause in the agreement. In such cases, rent increases can align with the clauses outlined in the tenancy agreement.


Final Consideration: Mid-Tenancy vs. Between Tenancies

These procedures specifically apply to mid-tenancy increases. Landlords are not restricted on the amount they can increase rents by between tenancies, providing greater flexibility during these transition periods.


As we adapt to these changes in the Scottish Residential market, Chalmers Properties is committed to providing professional advice to current and prospective landlords. Should you wish to discuss your property or property investment, please feel free to reach out for any clarification or assistance during this transitional phase at