The Limits on Rent Increases (Scotland) Order 1989

Explanatory Note

(This note is not part of the Order)

Section 33(1) of the Rent (Scotland) Act 1984 provides that increases in registered rents are to be limited to amounts specified by order made by the Secretary of State. Subsection (1)(a) provides for specification of the maximum amount by which the total rent payable during a specified period may be increased. Subsection (1)(b) provides for restriction of the total additional rental income which may be recovered by the landlord during a specified period.

Article 5 of the Order provides that for the periods specified in the Order the rent cannot be increased beyond an amount equivalent to the previous rent limit plus an amount payable for the provision of services plus the increase permitted by the Order. In any event the rent cannot be increased beyond the registered rent.

Article 6 provides that where in certain cases a registered rent is superseded by a subsequent registration any increase in the additional rental income for any twelve month period is limited to the increase permitted by the Order.

For the purposes of increases in both rent under article 5 and additional rental income under article 6 the increases permitted by the Order are—

(a) for the period of 12 months beginning with the date of registration, the greatest of the following amounts:—

(i) £104; or

(ii) one quarter of the previous rent limit; or

(iii) one half of the difference between the previous rent limit and the new registered rent, and

(b) for the subsequent period of 12 months the amount which is required to increase the previous rent limit to the registered rent.

The Order also contains supplementary and transitional provisions and revokes the Increase of Rent Restriction (Scotland) Order 1980.