Build it and they will come
PropOp are pleased to report that our operations, services and portfolio under management has continued to grow over the last year, with the 12 months from April 2024 recording our strongest period since our business launch in 2021. We have also continued to further strengthen our systems and team in line with this.
Since our last update, we have recruited Samantha Muirhead as our Client Accounts Manager. Samantha, was already well known to our Directors, due to previously working alongside her elsewhere in the industry for a number of years. This, again a consistent theme of the team that has been built in the initial years since our go live date. Samantha has a wealth of knowledge, built over 20 years, across different aspects of property management and she adds further strength and capability to our operations and efficiency.
Quick on the heels of Samantha was the appointment of Oli McTurk. Oli takes up the position of Field Agent and will primarily help provide direct support to our Operations Manager in facilitating the routine inspections of our portfolio across all cities under our management, ensuring all properties are well maintained and kept to a good standard. Oli was recruited from another agent within the industry and brings with him a good level of knowledge and experience, along with a passion for delivering a professional and strong customer service.
The Scottish Government recently published their consultation papers with plans to introducing a long-term system of rent control via the ‘The Housing (Scotland) Bill’. As part of this consultation The Housing (Scotland) Bill aims to tackle poverty across Scotland by improving the renting experience for tenants, through a range of new rights and a system of rent controls, in a way that maintains investment. Whilst we are not in favour of rent caps being introduced to the industry, we do not believe that they should provide a significant negative impact overall, to a property performance. Proposals are to cap rent increases at up to a maximum of 6%, with amendments seeing this being applied once a year and not permittable at each break in tenancy, as is available now (should this occur on more than one occasion within the year).
Below notes additional points included within The Housing (Scotland) Bill;
Powers for Scottish Ministers to introduce rent control areas and place limits on rent increases
Restrictions on rent increases at start of a tenancy in Rent Control Areas
Limits on how often rent can increase during a tenancy, both in and outside Rent Control Areas
New rights for tenants to request to keep a pet
New rights for tenants to make changes to the property they are renting
Allowing a single joint tenant to end a joint tenancy
In the world of Property Management, the summer period coincides with the traditional peak season. This time of the year is often associated with an increased number of tenancy turnarounds in general, with the numbers further inflated by students looking to terminate their lease at the end of their academic year, with the next batch of new and returning students looking to secure their accommodation for the year ahead. This break in between leases allows more significant improvements to be made by landlords, with the property maintained to a good/attractive standard - whether it is decorating throughout, replacing flooring/furniture or simply general maintenance. It is therefore an important time to get the rent setting correct in line with the market, of which supply and demand will always dictate. All of which helps minimise the void period, whilst maximising the rent and the overall performance return of the asset for our clients. This being one of the reason’s we do not believe good and responsible landlords should be restricted by rent controls and that their property should be allowed to perform to the standard it is made available and to the current market conditions of that location/city.
Additional information on market performances was recent provided by CityLets in their quarterly report - https://www.citylets.co.uk/research/reports/property-rental-report-scotland-2025-q1/
“Scotland’s Private Rented Sector (PRS) received a welcome surprise in first quarter of 2025 with the signalling for the end of rent caps within tenancies to commence on the 1st of April 2025. Whilst the long-term prospect of controls remain, the lettings industry was at least able to enjoy a sigh of relief to operate as a free market once again for the first time in over two years.
Indeed, growth for new lets in the Scottish PRS continued to ease in the first quarter of 2025, moving steadily back towards its pre 2022 long-term average broadly tracking inflation. Current figures for the open market in the sector’s largest geographical areas no longer provide a mandate for controls. Arguably, from the perspective of the industry, it is a slowdown to be welcomed.”
Scottish Monthly Rent Analysis Q1 2024 - Q1 2025
Scotland - Average Stock Levels (Q2 2022 - Q1 2025)