# Rent controls: What landlords need to know

Posted 26/09/2026 by [Alicia Robson](/blog/authors/alicia-robson)

Rent controls can offer tenants greater certainty, but they may also affect rental supply and investment. Here is what landlords should know.

   ![man looking at paper work](https://www.reedsrains.co.uk/uploads/blog_post/12_1303_s.jpg?v=83644) Rent controls are designed to limit the frequency or size of rent increases. Depending on the system, they may apply during a tenancy, when a new tenancy begins or both.

Scotland has introduced a framework under which Rent Control Areas can be created in locations where rental conditions justify intervention. England has taken a different approach, regulating in-tenancy increases through the Renters’ Rights Act without introducing a general percentage cap.

Here is what landlords need to know about the two systems and the arguments surrounding rent controls.

This article focuses on England and Scotland. Rental legislation differs in Wales and Northern Ireland.

## Scotland’s Rent Control Areas

The Housing (Scotland) Act 2025 gives Scottish Ministers the power to designate Rent Control Areas.

Local authorities began formally assessing rent conditions on 1 April 2026. Their first reports are due by 31 May 2027 and will help Ministers decide whether controls are necessary in particular locations.

Before designating an area, Ministers must be satisfied that the proposed restriction is necessary and proportionate. They must also consult the relevant local authority and landlord and tenant representatives.

A designation can last for up to five years and must be kept under review.

## How much could Scottish rents increase?

Within a designated area, increases for applicable private residential tenancies will generally be limited to CPI inflation plus 1%, up to a maximum increase of 6%.

The restriction will apply during and between tenancies. Rent for an applicable property cannot normally be increased more than once within 12 months, even if the tenant changes.

Properties can be exempt where they are:

- Completely new to the private rented sector
- Bought by a landlord with vacant possession and let for the first time following that purchase
- Returning to the sector after having no relevant tenancy for at least 12 months
- Part of certain exempt mid-market or build-to-rent schemes

Further exceptions may allow increases above the cap in specified circumstances. Landlords should confirm the latest position before setting or increasing rent.

## What are the rules in England?

England does not have Rent Control Areas or a universal percentage cap.

Since 1 May 2026, the Renters’ Rights Act has required landlords of assured periodic tenants to follow the statutory Section 13 process when increasing rent.

A landlord must:

- Use Form 4A
- Give at least two months’ notice
- Increase the rent no more than once a year
- Keep the proposed rent in line with the open market

Tenants can challenge a proposed above-market increase.

Rental properties must also be advertised with an asking price. Landlords and agents cannot encourage rental bidding or accept an offer above the advertised amount.

## How might rent controls help tenants and landlords?

### Predictable housing costs

Limits on increases give tenants more certainty over their future rent and may make household budgeting easier.

### Longer-lasting tenancies

Tenants who feel secure about future costs may be more likely to stay. A reliable long-term tenant can reduce void periods and the cost of repeatedly marketing and preparing a property.

### Targeted support

Scotland’s area-based model is intended to focus controls on locations where evidence indicates that rents are rising steeply and intervention is justified.

## What are the potential risks?

### Fewer rental properties

Evidence from international markets suggests some landlords may sell or change how a property is used when rent controls reduce expected returns.

If supply falls while demand remains high, tenants may find it harder to secure a suitable property.

### Less new investment

Investors and developers may direct money elsewhere if a controlled market is considered less viable. Exempting some new-build properties is one way policymakers may try to protect future supply.

### Reduced tenant mobility

A tenant benefiting from a controlled rent may be less willing to move, particularly if other suitable homes are scarce or more expensive.

Although this can support tenancy stability, it may also leave some households in properties that no longer meet their needs.

### Pressure on property improvements

Legal obligations relating to repairs, safety and property standards continue to apply. Nevertheless, controls could affect the amount landlords are able or willing to spend on improvements beyond the required standard.

## What should landlords do now?

Landlords should avoid assuming that the same rent rules apply throughout the UK.

If you own rental property in Scotland, monitor local authority assessments and any future Rent Control Area proposals. In England, make sure every increase follows the Renters’ Rights Act procedure introduced in May 2026.

Keep clear records, use the correct notices and check the current rules before acting.

If you would like to understand the rental market in your area or explore support with managing your property, speak to your local Reeds Rains lettings team.

**Find your local lettings branch**

   ![Alicia Robson](https://www.reedsrains.co.uk/uploads/blog_author/12_11_t.jpg?v=35479) [Alicia Robson](/blog/authors/alicia-robson)

Reeds Rains Emarketing Executive