In recent news, Scottish landlords have launched a judicial review against the Scottish government’s three percent cap on rent increases. This cap was introduced in December 2017 as part of the Private Residential Tenancy Act and was designed to protect tenants from excessive rent increases. However, landlords argue that the cap is unfair and could lead to financial hardship for them.
The judicial review has been brought by the Scottish Association of Landlords (SAL) and is being funded by a crowdfunding campaign. The aim of the review is to challenge the legality of the three percent cap on rent increases. The SAL argues that the cap is an arbitrary figure and that it does not take into account the individual circumstances of landlords or tenants.
The SAL also argues that the cap could lead to financial hardship for landlords, as it does not allow them to increase rents in line with inflation or other costs associated with running a rental property. They claim that this could lead to a situation where landlords are unable to maintain their properties or pay their own bills.
The Scottish government has defended the three percent cap, arguing that it is necessary to protect tenants from excessive rent increases. They also point out that the cap is only applicable to new tenancies and that existing tenants cannot be affected by it.
The outcome of the judicial review is yet to be seen, but it could have far-reaching implications for landlords and tenants in Scotland. If the SAL is successful in its challenge, it could mean that landlords are able to increase rents beyond the three percent cap. This could lead to increased costs for tenants, as well as potential financial hardship for landlords if they are unable to keep up with rising costs.
It remains to be seen how this judicial review will play out, but it is clear that both landlords and tenants in Scotland will be watching closely. The outcome of this review could have a major impact on the rental market in Scotland and could potentially lead to changes in rent prices across the country.