The second quarter of 2025 saw a return towards balance for the Scottish Private Rented Sector after a sustained period of excess properties relative to demand in many areas. Rents in major cities broadly treaded water whilst national growth continued to edge lower at just 3.6% Year on Year (YOY), a far cry from the 11.7% recorded just one year earlier and precisely in line with inflation as at June 2025.
Scotland, continues to operate as a free market both within and between tenancies and this will remain the case for another two years at least given the extended deadline for councils to report on their local market.This would seem to suit landlords at this time. After a period of unprecedented price appreciation post Covid, a sustained period of relative calm or indeed decline will soften the figures that will ultimately be presented by councils to Scottish ministers. It may become difficult for any council to demonstrate that rents are currently rising at more than CPI + 1.
“The appointment of Màiri McAllan as Scotland’s new Housing Minister brings renewed hope for a more collaborative relationship between the Scottish Government and the PRS. With demand continuing to rise and supply tightening, housing policy must be evidence led, not ideological. The Housing (Scotland) Bill should avoid repeating past missteps, and proposed energy efficiency targets must be realistic and properly funded. With around 340,000 properties, the PRS remains vital to Scotland’s housing provision. The rental market continues to show resilience, underpinned by strong tenant demand. Expectations around condition and energy efficiency are rising, rewarding landlords who invest and adapt to tenants evolving needs.”
I am a Tenant Landlord
