Rising rents are one of the biggest pressures facing tenants today. As the cost of living continues to bite, it’s no surprise that rent controls regularly return to the political spotlight. On the surface, they sound simple and fair: limit how much rents can rise, give tenants certainty, and improve affordability.

However, history and evidence suggest the reality is far more complicated. That’s why many across the housing sector were relieved that rent controls were not included in the Renters’ Rights Act.

Understanding why matters for landlords, particularly as rent increases will now face greater scrutiny, even without formal caps.

What Are Rent Controls?

Rent controls are rules that restrict how much rent can be increased. They can apply during an existing tenancy, between tenancies, or both. In practice, controls may take the form of fixed percentage limits, increases linked to inflation, or caps that only apply in specific geographic areas.

While the structure varies, the aim is always the same: to limit rent growth in order to protect tenants from sudden or unaffordable increases.

Why Rent Controls Appeal to Campaigners

Supporters of rent controls often point to the sense of stability they appear to offer. Predictable rents can help tenants plan their finances and reduce anxiety about being priced out of their homes. In theory, they may also discourage excessive rent inflation in highly competitive markets and provide clear, easy-to-understand rules.

These arguments resonate strongly during periods of economic pressure. But what sounds fair in principle doesn’t always translate into positive outcomes in practice.

The Unintended Consequences of Rent Caps

The core issue with rent controls is that they do not address the underlying problem in the private rented sector: a shortage of available homes. When demand continues to exceed supply, controlling price doesn’t remove the imbalance — it simply shifts the pressure elsewhere.

One of the most common consequences is a gradual reduction in rental supply. If landlords are unable to adjust rents to reflect rising mortgage costs, maintenance expenses, and regulatory requirements, some choose to exit the sector altogether. Others may move properties into short-term lets or sell them, reducing the number of long-term rental homes available.

Rent caps can also lead to behaviour that works against affordability. Faced with limits on future increases, landlords may raise rents as often as permitted and push increases to the maximum allowed. Others may set higher starting rents at the beginning of a tenancy or become more selective about who they let to, prioritising applicants with stronger affordability profiles or guarantors. This can disproportionately affect lower-income households, the self-employed, and those with variable income.

Another risk is declining property standards. When income becomes constrained but costs continue to rise, investment decisions are often delayed. Over time, this can impact maintenance, upgrades, and overall housing quality.

Finally, rent controls can distort the wider market. Tenants who benefit from below-market rents may choose to stay put even when their circumstances change, reducing turnover and making it harder for others to find suitable homes.

Scotland’s Experience: A Real UK Case Study

Scotland offers a valuable real-world example of how rent caps play out in practice. In response to the cost of living crisis, the Scottish Government introduced emergency measures in October 2022, including a rent freeze and restrictions on evictions. These measures were later adjusted to allow capped increases of up to 3 percent.

While the intention was to provide short-term relief, the policy evolved over time. From April 2024, Scotland moved away from fixed caps and instead introduced a system where disputed rent increases were assessed by an independent adjudicator using set criteria. By March 2025, the temporary measures came to an end and the system returned to its previous framework.

What became clear was that rent caps did not lead to permanently lower rents. Instead, once restrictions eased, delayed and catch-up increases followed. Short-term protection did not remove long-term market pressure — it merely postponed it.

Why the Renters’ Rights Act Took a Different Approach

The Renters’ Rights Act reflects many of the lessons learned from Scotland. Rather than introducing rent caps, the focus is on fairness, transparency, and process.

Rent increases will still be allowed, but landlords and landlords and agents will need to demonstrate that they are evidence-based, proportionate, and aligned with local market conditions. Correct use of the Section 13 process will be essential, and documentation will matter more than ever.

This approach aims to balance tenant protection with the need to maintain supply and investment in the private rented sector.

Preparing for Rent Increases Under the New Rules

For landlords, preparation is key. Rent reviews should be supported by clear local comparables and a documented rationale. Affordability should be considered carefully, and tenants who may be struggling should be signposted to appropriate support where possible.

Proactive maintenance can also help control long-term costs, reducing the risk of large repair bills that place additional pressure on rent decisions. Ensuring notices are issued correctly and on time will be essential to staying compliant.

Final Thoughts

Rent controls are often presented as a simple solution to complex problems. While they can offer short-term breathing space, the evidence shows they frequently lead to reduced supply, delayed investment, and higher rents elsewhere in the system.

By excluding rent caps, the Renters’ Rights Act has taken a more evidence-led approach. The emphasis is now on fair rent setting, transparency, and correct process — not artificial limits that risk long-term harm.

For landlords, the message is clear: rent increases must be justified, documented, and compliant, but a sustainable rental market depends on maintaining supply as well as protecting tenants.

​Supporting landlords to stay compliant, confident, and in control.
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