Rent pressure zones
Local councils can apply to Scottish Ministers to have an area designated as a 'rent pressure zone' (RPZ) if they can prove that:
- rents in the area are rising too much
- the rent rises are causing problems for the tenants
- the local council is coming under pressure to provide housing or subsidise the cost of housing as a result
A rent pressure zone will only apply to rent increases for tenants with a private residential tenancy. Rent increases for tenants with a short assured or assured tenancy will not be affected.
If an area is designated as an RPZ, a cap (maximum limit) is set on how much rents are allowed to increase for existing tenants with a private residential tenancy each year in that area.
Scottish Ministers must consult landlords' and tenants' representatives before they make any area a rent pressure zone.
What the rent cap might look like
Any cap set by Scottish Ministers will be at least consumer price index (CPI) plus 1% – for example if CPI is 1.6%, the minimum cap set by Ministers would be 2.6%.
The cap can last for up to five years and will apply to existing tenants who have a private residential tenancy.
Applying for additional rent to reflect property improvements
Any cap set will also enable a landlord to apply to a rent officer to add an amount of rent to reflect any improvements made to the let property. A landlord can only do this by applying to a rent officer for a decision on how much additional rent they can include in the rent increase.
- Rent Pressure Zone: application requirements details the requirements a local authority must meet for an application to be valid
- Rent Pressure Zone: application template for local authorities who want to make a RPZ application
- Rent Pressure Zone checker to see if a let property is located in a rent pressure zone
- Rent Pressure Zone Improvement Costs Guidance to see what types of property improvements a rent officer might consider