Scottish rental prices fall as Government presses ahead with rent control plans

As the Scottish Government presses ahead with plans to introduce rental controls, it has been revealed that rent prices in the country have fallen.

The latest Citylets Quarterly Report shows that rents have fallen from the Q2 peak of £762 per month down to £757.

The statistics also show that year-on-year growth has also slowed, down from 5.4% at the end of Q2 to 2.9% at the end of Q3.

Aberdeen has seen some of the biggest falls with prices 6.7% down on where they stood this time last year – compared with a negative annual growth of 3.8% at the end of Q2.

However, in Edinburgh the trend is reversed. Rents in the city have now risen for 10 consecutive quarters, with the annual increase now standing at 7.5%.

The changing fortunes in Aberdeen may pose questions for the Scottish Government plans for rent controls, according to Citylets founder Thomas Ashdown.

He said: “By the start of 2016, it will be a fact that no rental property type in Aberdeen will have outperformed inflation since the onset of the credit crunch.

“I would go further to say that rents may even fall to the same levels as 2008/9 which would be a significant drop in real terms.

“It would seem that Aberdeen now represents a clear example of how the Scottish PRS can self-regulate.

“With so much concern in the investor community in relation to rent controls, the Scottish Government must surely want to consider whether the intended benefits outweigh the risks at this time.

Prices in Glasgow meanwhile are also continuing to edge up modestly at 2.2%. The annual rate of growth has slowed down from 4.4% last quarter.

The Dundee market also enjoyed positive annual growth, up 1.2%.

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2 Comments

  1. seenitall

    making a profit appears to be a dirty word again….

    Report
  2. Anonymous Coward

    Working in England I will be very excited to see the results of this potentially disastrous experiment.

    Good luck Scotland – you’re going to need it!

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