Upper tribunal confirms COLA rent cap exemption

In a decision which will be binding on future First-Tier Tribunal (FTT) cases, the Upper Tribunal has confirmed that the Cost of Living (Tenant Protection) (Scotland) Act 2022 rent freeze/rent caps which were in place from 6 September 2022 to 31 March 2024 did not apply to assured and short assured tenancies which contain rent increase clauses. This confirms the advice that SAL has been giving to members about this exemption is correct. The decision can be read here.

The Upper Tribunal decision resulted from an appeal by the tenants of a FTT decision which also came to the same conclusion. We previously reported the outcome of the FTT case to members in a write up here.

This decision sets a precedent which will now be binding on all future FTT cases.

The decision write-up helpfully includes a postscript which makes it clear that assured and short assured tenancies with rent increase clauses are also exempt from the current tapering mechanism appeal process which can be used to restrict rent increases on other tenancy types. For guidance on carrying out a rent increase see our factsheet here. Please remember you will need to be logged in to access online factsheets.

Not yet a member? Join SAL today for instant access and support.