Another quarter passes, filled with more seismic political shifts such as the triggering of Brexit and a Scottish Government backed request for a 2nd referendum. Yet the Scottish PRS continues on its set path.
The ongoing struggle for growth at the National level between falls in Aberdeen and rises in the central belt played out as an (almost) zero sum game in Q1 2017 with 0.1% recorded. Our view that rents in Aberdeen would fall to national average, as stated last quarter, has come to pass with average rents for the granite city and the country as a whole now both at precisely £768 per month.
The slight seasonal cooling observed in some central belt markets last quarter drove national annual growth mildly negative, however growth for Edinburgh and Glasgow as a whole has returned to 4-5% albeit slightly down on the 5-7% range of recent times and perhaps representing the new growth level.
With changes to the legislative and tax frameworks for landlords operating in the Scottish PRS now becoming a reality, it remains to be seen whether there will be any material net change to supply of properties in the market. However, it remains fairly certain that in Scotland’s major conurbations it will remain a landlords market for the foreseeable.
“It’s been a promising start to 2017. Glasgow remains strong, especially in the West End where demand continues to outstrip supply. It’s business as usual in Edinburgh with low time-to-let figures and rents remaining high. It’ll be an interesting few years as we wait to see whether the 100’s of new build-to-rent properties planned for the capital will be enough to cool its overheating rents. If not it’s likely that some areas may experience being designated Scotland’s first ‘rent pressure zones’. The previous favourite for this dubious honour, Aberdeen, experienced a good start of the year with increased lets, and a feeling of positivity which has been missing for about 18 months. Our Perth office has also reported a busy qtr with particular demand for properties out-with the city centre.”
I am a Tenant Landlord
