It’s fair to say it has been a busy year so far in the Scottish property market.
The Government are building more homes, but there is clearly still a major housing shortage in Scotland resulting in an impact across all sectors; particularly for young first-time buyers who are finding it increasingly difficult to get on the property ladder.
‘Generation Rent’ is fast becoming a reality and many younger people simply can’t afford to own a home in the town they grew up in. Which is sad, but a definite sign of the times.
The Scottish property market continues to boom. The demand for residential property (particularly within the Capital and in areas such as Leith and Stockbridge) still massively outstrips supply. This in turn drives up property prices with no sign of it easing any time soon. According to a recent study, Edinburgh property prices are rising at a higher rate than any other city in the UK, with Glasgow not too far behind following the regeneration of the East End and growing popularity of Finnieston and West End areas.
We are finally seeing the Build to Rent (BTR) sector gathering pace in Scotland; purpose-built investor owned residential properties intended specifically for renting rather than sale. This is backed by the Scottish Government to help deal with the housing supply shortage and whilst we are still way behind other UK cities there are now over 4,000 BTR units in Scotland. This is a sector which is expected to grow rapidly.
Scottish Private Residential Tenancy
In December 2017, the new Scottish Private Residential Tenancy (SPRT) was introduced, a new tenancy regime for residential let properties in Scotland replacing the previous short-assured tenancy. Designed to improve the private rented sector (PRS) and provide greater security for tenants, changes to the tenancy include;
Regulation of the PRS was also introduced in January 2018, which includes;
In a buoyant private rented market with so many letting agents competing for business, I personally believe that this level of regulation is a great thing for the sector in driving up the standards of practice and filtering out the rogue individuals.
Scotland needs a well-regulated property sector, with robust dispute channels, more than ever and with the colossal rise of AirBnB and other short-term let firms, it’s surely only a matter of time until we see stringent regulation across the short term let sector.
If you have any questions or queries please contact Jamie McKenzie on 0131 561 2408 or firstname.lastname@example.org
Property Specialist and Account Executive - Bruce Stevenson Insurance Brokers