Should Glasgow Landlords Raise the Rent in 2025?

So let's deal with the question: Should you raise your rent in 2025?

We believe all landlords should review the rent they charge every year.

And, if appropriate, increase it. (But there is a 'but' – see later.)

Here's why.

Your landlord costs go up every year. You need the rent to keep pace so you can maintain your property to the standard tenants expect.

Most tenants assume the rent will rise from time to time. (Everything else goes up, so why wouldn't the rent?)

And most tenants prefer a moderate annual rise rather than no increase for years and then a big hike out of the blue.

Reviewing and, if need be, raising the rent every year is fair to both sides.

In a surprising move, the Government has just announced it is scrapping the temporary restrictions on rent increases at the end of March. The current restrictions allow tenants on most tenancy types to challenge a rent increase through the rent officer or tribunal, with a tapering formula being applied which can restrict the level of rent increase allowed.

It means that for any rent increase notices issued on/after 1 April 2025, an appeal to the rent officer or tribunal by the tenant would result in the rent being set at the open market rental value, even if that is higher than what the landlord has proposed.

However, permanent rent-controls are on the way.

The Housing (Scotland) Bill has already passed the 1st stage of its progress through parliament.

The Bill seeks to introduce long-term rent controls, including between tenancies for the first time.

So, the rent you charge must be at the right level before this Bill comes into force which is likely to be around 2026/27.

Currently landlords are able to raise the rent once a year and have to give three months' notice of any increase.

If the rent is already at, or above, market levels, a rent rise may be inadvisable. Such a move could prompt your tenant to move on and you could struggle to find a new tenant willing to pay above-market rent.

How do you decide what the right rent is?

You could take a guess.

But it's much better to take advice from a local expert.

Letting agents know their local markets inside out. They know what other landlords are achieving and what tenants are prepared to pay. They can use this expert market knowledge to help you decide the optimum rent for your property.

We will be pleased to offer expert advice on setting the correct rent for your rental property. Feel free to give us a call or message us today.