Scotland’s PRS enjoyed relative calm in the first quarter of 2023 with some easing of pressure on landlords as mortgage rates drifted lower and the rent freeze was replaced with a 3% increase cap with discretionary scope for up to 6%. However material concerns for supply persist with Industry consensus that recent legislation, however well intent, will increasingly exacerbate the root causes of the problem.
It could be argued that it was the turn of administration which brought such rapid change to the residential lettings landscape to feel the pressure with an unexpected resignation of the First Minister as surprising and sudden as the manner of the introduction of the legislation.
Average rents in Scotland rose 12.4% Year on Year (YOY) in the first quarter of 2023 to average £1,007 per month with properties taking just 21 days to let. Keen competition for property to rent around the country persists evidenced by widespread double digit growth in rents and low time to lets.
“The rental market remains strong in Scotland. In the main, most properties are receiving high demand for viewings with several notes of interest coming off the back of the viewing. There is strong demand for student HMO properties but we are seeing limited notices coming from students, which would have been the norm at this time of year pre-Covid. The demand from renters is there but there is still not enough stock to satisfy the demand. We need to see positive action from government to encourage both landlords and corporate investors to enter the market and aid the housing supply to help increase the stock across all tenures.”
I am a Tenant Landlord
