Rents have actually shot up since the rent cap in Scotland was introduced, new figures from lettings portal Citylets reveal.

Average rents for new tenancies in the PRS have risen by more than 10% for the third quarter in a row.

New figures from lettings portal Citylets underline what many in the industry feared, that the new legislation would make the situation worse.

Rent gap

The rent gap between those already in rented accommodation when the Cost of Living (Tenant Protection) (Scotland) Act 2022 was passed, and those seeking new properties to rent looks set to continue to grow.

And the 3% cap for rent rises for existing tenancies, introduced in April, is set to be extended for at least another six months from September.

Double digit increases

Almost all major regions in the Citylets research saw double digit increases in rents in the second quarter.

Never before have we recorded such steep and sustained annual price appreciation.”

Thomas Ashdown, MD at Citylets, says: “Never before have we recorded such steep and sustained annual price appreciation across a single region, never mind across the country as a whole.”

Adrian Sangster, leasing director at estate agency Aberdein Considine, says: “Demand for good quality accommodation remains at record high levels.

“This demand is not only restricted to the major cities, we are also witnessing unprecedented enquiries for properties in our towns and rural areas.”

The average property to rent in Scotland surpassed the £1,000 mark for the first time in Q1 2023, and continued to rise to £1,081 per month.

Avoid cap

Landlords are increasing rents between tenancies to avoid the rent cap imposed by the Scottish Government, Propertymark revealed.

Timothy Douglas, the trade body’s head of policy and campaigns, told the Scottish Parliament earlier this year that many landlords were increasing rents once a tenancy ended or even exiting the market.