Scotland’s Private Rented Sector (PRS) received a welcome surprise in first quarter of 2025 with the signalling for the end of rent caps within tenancies to commence on the 1st of April 2025. Whilst the long-term prospect of controls remain, the lettings industry was at least able to enjoy a sigh of relief to operate as a free market once again for the first time in over two years.
Indeed, growth for new lets in the Scottish PRS continued to ease in the first quarter of 2025, moving steadily back towards its pre 2022 long-term average broadly tracking inflation. Current figures for the open market in the sector’s largest geographical areas no longer provide a mandate for controls. Arguably, from the perspective of the industry, it is a slowdown to be welcomed.
“The first quarter of 2025 began slowly with a large number of properties sitting on the market which was from the rush to list pre-Christmas. Properties are now beginning to let and we are seeing an increase in tenant enquiries which naturally happens come spring. The temporary rent cap expires on 31st March for in-tenancy rent increases and it will be interesting to see how landlords and the market reacts. Interestingly buy-to-let activity is growing, Q3 2024 saw a 6.5% rise in but-to-let lending. Hopefully an encouraging sign for the sector as we move through 2025.”
I am a Tenant Landlord
