On April 1, the cap on rent increases in Scotland officially came to an end, giving landlords more flexibility to adjust rental prices in line with market conditions. This marked a significant shift in the Scottish property rental landscape—particularly in Aberdeen and the North-east, where demand remains high, and supply is increasingly low.
Northwood Operations Director Matt Pullinger explains the latest developments, legislative updates, and what landlords should be considering.
Market Update: Aberdeen vs. the Rest of Scotland
The rental market in Aberdeen is showing continued strength, bucking trends seen in other Scottish cities. After a sustained period of reduced activity, the market is rebounding. Demand for well-maintained properties is high, stock is low, and as a result, rents are rising across all property sizes.
By contrast, Edinburgh, Glasgow, and Dundee are experiencing a fall in demand following a prolonged period of rent rises and stock shortages. Rents have peaked, and with more properties now sitting on the market for more than six weeks, landlords are under increasing pressure to reduce prices to stay competitive.
End of Transitional Rent Control
Last year, the Scottish Government introduced a transitional rent control framework, placing a cap on rent increases. These temporary measures ended on April 1, giving landlords a brief window of increased flexibility before further reforms take effect.
This means:
- Now is a critical time for landlords to conduct rent reviews and consider adjustments.
- Delaying increases could impact investment returns, especially as costs continue to rise.
With the Housing (Scotland) Bill currently at Stage 2 in Parliament, landlords can soon expect new permanent rent control provisions and enhanced tenant protections. Acting now allows landlords to align rents with market conditions before tighter controls are reintroduced.
Legislative Changes and Compliance: What to Watch
Landlords need to stay ahead of the curve to ensure compliance and protect their investment. Here’s a quick overview of what’s changing:
- Housing Bill: This upcoming legislation proposes wide-ranging reforms, including permanent rent controls, new tenancy agreement requirements, increased landlord responsibilities, and strengthened tenant rights.
- Energy Efficiency Regulations: Changes expected in 2026 will introduce a new rating system, revamped energy performance certificates (EPCs), and a reduced certificate validity period. It’s important to start preparing now to meet these standards.
Key Takeaways for Landlords
- Review rents now: With temporary rent caps lifted and before new controls take effect, this is the ideal window to reassess rental prices.
- Stay compliant: Legislative and regulatory changes are coming—ensure your properties are ready.
- Understand the market: While rents are plateauing in cities like Edinburgh and Glasgow, Aberdeen remains a hot spot for rental demand.
At Northwood, our expert team is here to guide you through this evolving landscape. We’re continually reviewing developments and, whether it’s navigating rent increases, understanding new legislation, or keeping your properties compliant, we will keep you informed of all updates that affect your property.
Got questions or need support? Contact our team on (01224) 218450 or email us at aberdeen@northwooduk.com
