Rent control does not mean your rent is frozen forever. The Housing (Scotland) Act 2025 provides for exemptions that reward landlords who invest in their properties. Used well, a planned refurbishment can lift both your rent and your capital value.
What the exemption allows
Where a Rent Control Area applies under Part 1 of the Housing (Scotland) Act 2025, increases are normally capped at CPI plus one percentage point, up to a maximum of 6% a year. The Act allows Scottish Ministers to set circumstances where rent can rise above that cap - significant improvements to the property are expected to qualify. The detail is being set in secondary legislation, so the exact rules may evolve; strong evidence will matter either way.
What counts as an improvement?
- A new kitchen or bathroom
- Energy-efficiency upgrades such as insulation, heating or glazing
- Reconfiguring space to add a bedroom or usable room
- Substantial modernisation beyond routine repair
Why energy efficiency is a smart place to start
Efficiency upgrades do double duty. They can support a rent increase, they make the home more attractive to tenants, and they future-proof it against tightening standards. Measures like insulation are among the most cost-effective improvements you can make.
Plan the refurb, keep the evidence
The landlords who benefit most treat this as a plan, not an afterthought: scope the work, keep every invoice and before-and-after record, and time it around tenancy changes. Our construction partner Street and our trusted trades network handle refurbishments end to end, so the work is done well and documented properly.
Frequently asked questions
Can I raise rent above the cap after renovating in Scotland?
The improvement exemption may allow a rent increase above the standard cap where you have made a significant improvement to the property, subject to evidence and the current Scottish Government guidance.
What improvements qualify for the rent-cap exemption?
Significant works such as a new kitchen or bathroom, energy-efficiency upgrades, or reconfiguring the property typically go beyond routine repair. Keep full records of the work and its cost.
This article is general information, not legal or financial advice. For guidance on your circumstances, get in touch.