The final quarter of 2025 experienced the rare pleasure of relative calm after one of the most tempestuous years both within and outwith the Scottish Private Rented Sector.
2025 was characterised by the passing of the Housing (Scotland) Bill to become an Act against a backdrop of incessant global uncertainty from sweeping changes to trade tariffs with the US, giving whiplash to any interested observers. The US Supreme Court will shortly rule as to whether a US president has the constitutional right to dictate such trade policy. The unwinding of tariffs will be welcome to exporting nations and their economies, however the experience has ingrained a deep sense of instability over the future global economy and trade relations.
“Scotland’s PRS ended Q4 with continued rental growth, though at a more measured pace than earlier in the year. Tenant demand is beginning to ease slightly from peak levels, while supply has also improved marginally, although it remains well below what is required for a balanced market. Affordability is now a key constraint, with wage growth increasingly influencing rental ceilings. Recent UK Budget taxation announcements may place additional pressure on landlords operating across the UK, which could have some indirect impact in Scotland albeit softened by the devolved nature of taxation. Overall stock remains tight, competition high and well-presented properties continue to let quickly across all major cities.”
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