The latest Citylets Quarterly Report for Q4 2024 has been published. “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.”
Read commentary from Will Scarlett below (p. 19)
Institutional Investors Return to the Scottish BTR Market
Following Royal Assent of the Housing (Scotland) Bill, institutional investors are finally returning to the Scottish BTR market. It is now three and a half years since rent control was imposed in September 2022, resulting in an immediate cessation of institutional investment into BTR.
Under the amended Housing Bill, rent control now only applies in local authority areas that have declared a rent pressure zone (RPZ); so far only Edinburgh (excluding Leith) has put itself forward as a RPZ, but the Bill allows for the exemption of BTR and MMR schemes that are purpose built, new build and professionally managed. For housing that does not qualify for exemption (largely private rental stock), the Bill allows rents to rise annually at CPI plus 1% (up to a maximum of 6%); in further a crucial amendment to the Bill, permits rents to be re-set to open market value in-between tenancies after a minimum of three years or
following evidence of capital improvement to the property.
So eventually, Scottish Government has listened and made amendments that are acceptable to investors. But at what cost? Scotland has unnecessarily lost billions in investment; years of supply; thousands of rental homes. A costly experiment that hopefully the rest of the UK can learn from.
– As imagined by Will Scarlett in Spring 2026 –
