Private Housing (Tenancies) (Scotland) Act 2016: Rent Increase Rules for Scottish Landlords

Every lawful rent increase on a Private Residential Tenancy in Scotland traces back to one statute: the Private Housing (Tenancies) (Scotland) Act 2016. If you own a rental property let under a PRT — which covers every new private residential let in Scotland since 1 December 2017 — this is the legislation that sets the rules.

What the 2016 Act Changed

Before the Act, Scottish private tenancies operated under two main frameworks: Assured Tenancies and Short Assured Tenancies under the Housing (Scotland) Act 1988, and the older Regulated Tenancies under the Rent (Scotland) Act 1984. Each had different rent increase mechanisms.

The 2016 Act replaced both systems for new lettings with a single tenancy type — the Private Residential Tenancy — that runs on an open-ended basis with no fixed end date. The rent increase mechanism was standardised: one prescribed route, no contractual alternatives, no market-specific variations.

The Statutory Route: Sections 18 to 25

Sections 18 through 25 of the 2016 Act define the rent increase procedure. The key provisions:

Section 20 limits increases to once every 12 months. The clock runs from the tenancy start date or the effective date of the last increase.

Section 22 specifies the prescribed notice requirement. A landlord must serve the statutory Rent-Increase Notice (Schedule 2 under SSI 2017/297) giving at least three calendar months notice. The form includes Part 3 — a mandatory response form and guidance notes that must be served alongside Parts 1 and 2.

Section 26 sets out the valid service methods: personal delivery, post, or email (only where the tenancy agreement contains an explicit consent clause for electronic service). Section 62 provides the 48-hour deemed receipt rule for post and email.

Contractual Clauses Cannot Override the Statute

This is the provision that catches the most landlords. Under the 2016 Act, the statutory procedure holds absolute priority over any contractual agreement. A clause in the tenancy agreement providing for automatic annual percentage increases, CPI-linked uplifts, or fixed review schedules does not work. It is not merely unenforceable in court — it is as if it does not exist.

The rent only changes through the statutory route: the prescribed notice, served correctly, with sufficient time. An informal letter, an email asking for more rent, or a verbal agreement at the door does not create an obligation to pay a higher amount. The tenant can simply continue paying the existing rent, and they are within their rights.

PRT vs Legacy Tenancies

The 2016 Act applies only to Private Residential Tenancies. If you have a tenant on an Assured or Short Assured Tenancy created before 1 December 2017, different rules apply — Form AT2 or contractual review clauses under the Housing (Scotland) Act 1988. Regulated Tenancies (pre-1989) follow the fair rent registration process under the Rent (Scotland) Act 1984.

Most active tenancies in Scotland are now PRTs, but if you inherited a property with an older tenant in place, check which type of tenancy they hold before serving any notice.

Where the 2025 Act Adds to the 2016 Framework

The Housing (Scotland) Act 2025 does not replace the 2016 Act — it builds on top of it. The 2025 Act introduces Rent Control Areas (not yet designated), extends the tenant referral window from 21 to 30 days (from April 2027), and bars adjudicators from setting rent above the landlord's proposed figure (also from April 2027). The underlying procedure — prescribed notice, three months, 48-hour buffer, 12-month frequency — remains anchored in the 2016 Act.

Get the Full Procedure

The statutory framework is clear but unforgiving. Missing a single element — the wrong form, a short notice period, a missing Part 3 — invalidates the entire increase. Our Scotland rent increases guide translates Sections 18–26 into a step-by-step workflow with dated checklists, so you can comply without reading the legislation line by line.

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