Activity in the Scottish PRS remained brisk throughout the final quarter of 2023, however with agents reporting recognisable seasonality for the first time in many quarters with demand softening towards year end. Whilst rents continued to rise substantively by historic standards, the rate of growth eased considerably in major conurbations which will be welcome news to tenants. Of note perhaps to would-be-legislators, associated Time To Lets (TTLs), often a precursor to further changes in rental values, also lengthened across the board.
Indeed, Aberdeen appeared to have completed its market cycle in Q4 2023 posting the strongest annual growth of all major cities at almost 10% which will be welcome news to landlords where rental values only now return towards the 2008 base for Citylets indices. The Aberdeen market has been a textbook case of self-regulation over any appropriate long term view.
“Demand continued to outstrip supply across all parts of Scotland with Edinburgh and Glasgow experiencing record levels of activity. Rents across Scotland have continued to increase at record levels with the number of tenants per property vastly exceeding supply. The rent rises have been exacerbated by the emergency Cost of Living legislation introduced to control prices. Continued uncertainty over the detail of the Scottish Government’s future legislative plans for the private rented sector has made some landlords cautious but many are committed to remaining in the sector while returns are strong.”
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