The final quarter of 2024 was as eventful as ever for the Scottish PRS, more in relation to its politics whilst the market itself operated broadly to seasonal norms not seen since pre-covid.
The Housing (Scotland) Bill passed its first stage in parliament and included an amendment to cap rent increases between tenancies at CPI plus one, applicable only to areas designated as a Rent Controlled Area (RCA). Whilst this was received well by some investors seeking long term certainty for their plans, it was criticised on both sides of the debate as going too far or not far enough.
“Towards the end of 2024, the market slowed with tenant demand easing back after a busy spring-autumn period. Last year saw few core investors, as was expected given the challenges of the PRS. What is now quite a prevalent theme is the circumstantial landlord. These are landlords who in the main are moving abroad for 2-4 year period. Whilst this is plugging a gap, it is only a sticking plaster and not a long term solution to the housing crisis. Crystal ball time for what 2025 will bring and the challenges, of which there will be some I’m sure.”
I am a Tenant Landlord
