Government to remove temporary rent increase controls

The government has contacted SAL to advise that it will be withdrawing the temporary restrictions on rent increases at the end of March. The 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. For more information on how the tapering formula works see SAL’s factsheet on rent increases.

Given the government’s recent approach to the sector this is a surprising and very welcome announcement.

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.

The government is still intending to introduce permanent rent controls in the future, and there is a Housing Bill going through parliament at the moment to bring these into force. For more information on this see our news article here. It is unlikely that any rent controls introduced through this new legislation would come into force before 2027.

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