First-tier Tribunal confirms COLA rent cap exemption
As members will be aware, the Cost of Living (Tenant Protection) (Scotland) Act 2022 introduced a freeze on most rent increases from 6 September 2022. This was later amended in April 2023 to a cap of 3% on most rent increases.
Since this legislation was introduced, SAL has been advising that assured and short assured tenancies which contain rent increase clauses are exempt from the cap. We are aware that some members have received conflicting opinions on this from local authorities, tenant advice bodies and tenants themselves. There has recently been a tribunal case which has confirmed that assured and short assured tenancies with rent increase clauses are exempt from the rent cap, even if the clause does not contain a mechanism or formula by which the rent will be increased.
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