Average rents in Scotland for new tenancies in the private sector have risen by double digits for the fourth time in a row since the introduction of the Cost of Living (Tenant Protection) (Scotland) Act 2022.

The new figures were revealed in the latest (Q3 2023) report from lettings portal Citylets, and have reinforced industry beliefs that the current policy on rent controls, providing for caps within tenancies, have led to hikes on the open market attracting or accelerating further legislative attention with proposals for full market controls. The current emergency legislation is due to expire on 31 March 2024 and is widely expected to be supplanted with wider, more permanent legislation.

Almost all major regions witnessed double digit annual growth, up to 19%, in the third quarter of 2023 with the market moving at frenetic pace for would-be renters.

Citylets MD, Thomas Ashdown, noted: “It is clear from the latest Government consultation that future policy for Scotland’s private rented sector will likely take the form of the current legislation with a further capping of rents, now including the open market. Indeed, many would argue that the current legislation has accelerated and/or shaped the forthcoming regulations.

“Whilst it is of course understandable that the headline figures for the continued sharp rise in open market rents will be causing unease, it remains a statement of fact that expanding the number of homes in the sector will have the natural cooling affect desired. A larger number of available homes will see more people housed at more affordable rents.”