A look back on the housing market

The private rented sector in Scotland has been experiencing significant growth in recent years, with more and more people turning to renting as a viable housing option.

According to data from the Scottish Government, approximately 31% of households in Scotland were in the private rented sector as of 2021.

This represents a significant increase from the 25% recorded in 2011.

One of the main drivers of this growth has been the shortage of affordable housing in Scotland, particularly in urban areas like Glasgow.

The high demand for rental properties in these areas has led to a crisis in the housing market, with many people struggling to find suitable and affordable rental accommodation.

For a one-bedroom property the average rent is now £786 – a 14.1% rise in just one year – with a two-bed now costing on average £1,087 and three bed £1,537. All the prices have more than doubled over the last decade with the cost of a three-bedroom property now 80% higher than it was in 2012.

This crisis in the housing market is having a significant impact on people’s lives, with many struggling to afford rent and facing the threat of homelessness. It is clear that something needs to be done to address this issue and ensure that everyone has access to affordable and suitable housing.

What is the Government doing to fix it?

Looking ahead to 2023, it is likely that the housing market in Scotland will continue to be impacted by the ongoing crisis in the private rented sector. The shortage of affordable housing is likely to persist, particularly in urban areas of Glasgow. In October 2022 the Scottish Government fast tracked through the Scottish Parliament the The Cost of Living (Tenant Protection) (Scotland) Act 2022 (‘the Act’) In broad terms, its purpose was to protect tenants in the current cost-of-living crisis whilst balancing safeguards for landlords. The Act introduced a temporary rent freeze and a ban on evictions applicable to the Scottish private rented, social housing and student accommodation sectors until at least 31 March 2023. It also introduced increased damages for unlawful evictions.

Fast forward to January 2023 and ministers have now introduced an extension allowing landlords to raise rents by a maximum of 3 per cent from April, but they can apply to Rent Service Scotland to increase the figure to 6 per cent if they have a valid reason. Whilst the 3 percent rental increase will be well received by landlords, you have to question what the long term strategy of the Scottish Government is to tackle the housing shortage across Scotland.

In conclusion, the private rented sector in Scotland is currently facing a crisis, with high demand for rental properties and a shortage of supply and more needs to be done to address the root causes of the problem and improve the situation for landlords and renters in Scotland.

As always we are on hand to discuss any housing matters you may have, feel free to get in touch with us here