Decrease in number of rental properties across Scotland
The cost of rent is expected to rise by 2% over the next year
Last updated 9th Aug 2018
The number of rental properties available in Scotland has fallen again over the past three months a new survey has revealed.
The decrease, coupled with an increase in demand from tenants, is expected to lead to rising rent costs.
The latest Royal Institute of Chartered Surveyors Scotland's survey showed a continued reduction of new property being put on the market in the lettings sector from May to July.
Overall, more respondents reported a fall rather than a rise in new landlord instructions - the tenth consecutive quarter in which this has occurred in the survey.
Meanwhile, tenant demand remains "resilient" with more chartered surveyors reporting a rise than a fall.
Over the next 12 months rents are projected to increase by a little short of 2% throughout the UK.
In the shorter term a 42% net balance of respondents expect rents to rise in Scotland over the next three months.
Meanwhile, July also saw a drop in property sales, with 37% net balance of respondents reporting a decline in new properties coming on to the market during the month and 49% net balance expecting prices to rise in the next three months.
Simon Rubinsohn, RICS chief economist, said: "The impact of recent and ongoing tax changes is clearly having a material impact on the buy to let sector as intended.
"The risk, as we have highlighted previously, is that a reduced pipeline of supply will gradually feed through into higher rents in the absence of either a significant uplift in the build to rent programme or government-funded social housing.
"At the present time, there is little evidence that either is likely to make up the shortfall".