The Housing (Scotland) Bill passed on the last day of the quarter to bring an end to a long period of uncertainty as regards the future regulatory environment of the Scottish PRS. Whilst the bill awaits Royal Assent to become an Act, it can be fairly assumed to become law given zero history of failure at this latter procedural stage since the start of the Scottish Parliament.
Growth in the Scottish PRS has completed its downward journey and returned to a sanguine trajectory with annual growth recorded of just 1.9% at the National level, almost 50% down from last quarter - a level not seen for nearly 5 years. Many agents report a balance between strong demand and good supply with a general return to recognisable market seasonality. Scotland’s major cities posted tepid growth in the range of circa 0-2% but with Dundee again recording a significant annual fall at minus 7.9%.
“The letting market in Scotland has fluctuated considerably in the last three years due to legislation changes. Rents have increased considerably due to the rising mortgage costs and legislation changes between 2022-2024. However, this year we have seen the rents plateau and start to come down slightly, which is reflective of both the cost of living impacting tenant affordability and decreasing interest rates throughout 2025. Rents will be under review across the country ahead of the rent controls in the Housing (Scotland) Bill becoming law. Investment in the private rental sector is essential to ensure rents remain affordable and competitive.”
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