The Scottish government is closing a loophole used by landlords to sidestep rent control rules.
A consultation document proposes that landlords will be limited to raising rents once a year by 3%, regardless of whether they take on a new tenant.
Previously the 3% cap only applied to existing tenancies, leading to landlords hiking rents between tenants.
Rents for new lets in Scotland rose by 12.7% in the year to July, compared with the UK average of 10.5%, according to Zoopla. In Edinburgh and Dundee they have surged by 15.6% in the past year.
Under the planned legislation, this practice will be outlawed. However, rents may be raised by 6% to cover high costs “in exceptional circumstances”.
