After 2 consecutive quarters of mild negative growth, the Scottish PRS returned to the black in Q1 2018 with average rents rising 1.6% year on year (YOY) to stand at £780 per month. Competition for larger 4 bed properties in particular in key urban markets resulted in steep gains, likely reflecting the strong seasonal student demand where there is some evidence to suggest supply is further constrained this year. PRS supply, in terms of available stock, has been reducing steadily from its 2013 peak.
“We believe we are seeing the first signs of a slowdown in the BTL market as tax changes from both Holyrood and Westminster begin to bite. The LBTT surcharge of 3%, which was designed to help first-time buyers by discouraging the competition of second home purchasers, does not appear to be having the desired effect. Recent research shows house purchase prices actually increased in 26 out of the 32 local authority areas. So whilst prices continue to increase it appears the supply of rented properties is falling.”
I am a Tenant Landlord
