The cost of renting in Scotland is easing ahead of rent control policies journeying through parliament.
The rate of growth is in low single digits for all the main cities, while rents fell by -0.5% annually in Glasgow, according to Citylets quarterly report for Q3.
Thomas Ashdown, managing director of Citylets, said: “Rents in Scotland’s PRS are beginning to ease which will be welcome news for tenants, however the investment community awaits hard facts on mooted changes to the Housing Bill that have been suggested will alleviate nerves.
“Expanding the market supply is the natural form of rent control long term and one that does not put extra burden on already overstretched local councils.
“Once again the Scottish PRS finds itself subject to the opposing forces of free market dynamics and government policy.
“Supply and demand balance seems set to ease if BOE interest rates trend consistently lower as expected
There are concerns that rent controls will curb new supply.
Ann Leslie of Lar Housing Trust said: “Edinburgh remains the most pressurised area and the removal of a required local connection for social housing is likely to exacerbate the problem.
“However, there are common themes across the country suggesting difficult times ahead. Pressure is mounting on the PRS, with various commentators highlighting that landlords are selling up in increasing numbers due to a perceived hostile political environment.
“This is, in turn, pushing more tenants towards the MMR sector and we have noticed a marked increase in enquiries in the last quarter.
“Demand from mature and PhD students, often with families, is also increasing and our waiting list would take a staggering 20 years to clear at current void rates.”
