Stock levels in Scotland’s PRS, whilst improved marginally on the previous quarter, remained at near historic lows throughout Q2 2022. Demand was unrelenting across all property types and locations despite the deepening economic and geo-political anxieties exacerbated by a war in Europe where the gravest of economic concerns subsequent to its onset slowly played out towards the worst case scenario following sanctions imposed on Russia.
High demand and low supply once again combined to push Scottish rents up 9.9% year on year (YOY) to a new all time high (ATH) of £970 per month and kept Time To Lets (TTLs) low, averaging 18 days. On current trajectory it is reasonable to assume the average property to rent in Scotland will soon exceed £1000 for the first time. All properties large and small let at approximately the same rate in the 16-19 day range underlining the broad demographic of the modern tenant market from single studios to large family homes.
“Tenant demand continues to outweigh supply in all Scottish cities, resulting in increased rents and shortening TTL. Long-term landlords exiting the sector, coupled with tenants staying longer, are contributing to this imbalance. However, as Einstein said - “in the middle of every difficulty lies opportunity”. I believe this opportunity is open to new investor landlords who, if they buy the right properties in the right area, can expect decent yields and return on investment. There are still BTL mortgage deals out there but I would suggest to those thinking about it to move quickly.”
I am a Tenant Landlord
