Rent Increase Calculator

(Apr 2024 - Mar 2025)

The TL;DR

For the Financial Year 2024/25, the Scottish Government are seeking to introduce ‘Transitional Measures’ which are aimed at controlling Rent Increases.

The guidance and calculations are not particularly simple. In short, you can propose whatever increase you wish, but should a Tenant challenge the rent, a certain set of calculations will be used to determine the Permitted Increase.

To help, we created a free calculator.

Current Rent - The Current Rent paid by the sitting Tenant.
Market Rent - A Rental Value for the Property based on the local Market.
Proposed Rent - The new increased Rent Value the Landlord is proposing.
Permitted Rent - The Rent Value which is permitted within the new measures.

Enjoy!

Disclaimer: This tool has been created for illustrative purposes only and Clyde Arc Letting assume no responsibility for the results provided. Should you wish full consultation and advice please contact Clyde Arc Letting directly and a Letting Agent will advise.

The Long Read

Gluten for punishment? Below we have covered the new ‘Transitional Measures’ in relation to Rent Adjudication in a little more detail. We have also re-phrased the explanation of the calculation in a way which (we hope) is easier to digest.

This is a draft item of legislation and has not yet been made as a Scottish Statutory Instrument. Should it be passed, it will be effective from 1 April 2024.

The Scottish Government are committed to developing a long-term system of rent controls. Following the ending of the emergency rent cap in Scotland on 31 March 2024, the Scottish Government have introduced 'Transitional Measures' relating to Rent Adjudication, which will be in place between 1 April 2024 and 31 March 2025.

From 1 April 2024 there will be NO CAP on the rental increase which Landlords can propose, however the following procedure will apply where a Tenant wishes to dispute the increase:

Any tenant who wishes to dispute a rent increase notice can apply for rent adjudication. In such cases, Rent Service Scotland or the First-tier Tribunal will set rent based on the lowest of the following three figures:

1. The Open Market Rate
2. The Rent requested by the Landlord
3. Where the market difference is more than 6%, the Permitted Rent.


Calculating the ‘Permitted Rent’:

In this calculation we will use the following terms for simplicity:

Market Rent - A Rental Value for the Property which the Market dictates. There is no one way this can be calculated.
Current Rent - The Current Rent paid by the sitting Tenant.
Proposed Rent - The new increased Rent Value the Landlord is proposing.
Permitted Rent - The Rent Value which is permitted within the new measures.

Rules:

  1. Where the difference between the Market Rent and the Current Rent is 24% or more, the Permitted Rent is 12% more than the Current Rent (12% being the maximum increase permitted in any case)

  2. Where the difference between the Market Rent and the Current Rent is less than 24%, the Permitted Rent will be calculated using the following rules;

    1. If the gap between the Market Rent and the Current Rent is 6% or less, and the Proposed Rent is not more than the Market Rent, then the Proposed Rent will be Permitted.

    2. If the gap between the Market Rent and the Current Rent is more than 6%, and the Proposed Rent is not more than the Market Rent, the Permitted Rent will be the Current Rent plus 6% plus an additional 0.33% for each percent that the gap between the Current Rent and Market Rent exceeds 6%.

  3. The Permitted Rent will never be higher than the Proposed Rent.