Citylets Q1 report

“The name may have changed, but the story in Scotland’s PRS remains very much the same at the end of Q1 2024. Rent controls remain, albeit for within tenancies and not the open market. For now. Emergency legislation for capping rents gave way to temporary legislation to achieve same but with more leeway than before with allowable rises of up to 12% and with the eviction moratorium at an end. Arguably the former necessitated the latter with many tenants finding themselves renting property at rates much lower than the open market. The formula for setting rent rises may see some landlords reaching for their school algebra books.

However for those seeking new lets, conditions improved for many in the first quarter of 2024. The rate of annual growth, having eased last quarter in many key locations falling back to single digits, continued to move downwards in Scotland’s cities with associated Time To Lets (TTLs) significantly lengthened. Should this continue into next quarter we may well see growth figures reminiscent of long term averages after what may transpire to have been post pandemic market distortion aggravated by emergency legislation.”

Scott Morrison, Aberdeen Branch Manager is featured (page 7) commenting:

“January was quieter than last year with the UK Government’s immigration changes coming into effect, meaning there were less international students with families coming to Aberdeen and the Universities perhaps realising there is an under provision of private accommodation available. Things have gradually gathered pace through February and March with new, good quality properties coming to the market, as things gear up for the typically busy Q2. There has been steady interest from relocation agents and oil and gas executives, and even students looking to try to secure a property now for the summer.”

Read the full article here.