Rents in Q4 2018 eased from their Q3 highs as is traditionally the case in the final quarter of the year. However all major urban markets, with the exception of Aberdeen, maintained their upward trajectory propelling the Scottish average up by a material 5% YOY. The average rent in Scotland now stands at £771 per month. Larger 3 and 4 bed properties again recorded the largest annual rises, at 7% and 10.9% respectively, continuing the trend of 2018 and reinforcing the view that an increasing number of families are calling the PRS home. Recent estimates put the number of families living in the PRS at around 90 000, constituting 25% of households.
“2018 was very much a year of transition for the Scottish PRS. Agents, landlords and tenants were continuing to adapt to changes brought about by the new PRT, which went live at the end of 2017. Agents also had to prepare for the introduction of the Letting Agent Register during Q4. Any agent who has not applied and continues to trade, does so illegally. Therefore landlords and tenants need to carry out due diligence to ensure the agent they’re using is fully compliant. All this took place at a time when more landlords left the sector in part due to the phased tax changes announced in the 2015 UK budget.”
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