What Has Been the Impact of the New PRT on the Number of Tenancies Lasting Less Than 6 Months?28 Feb 2019
We have now been using the PRT agreement for a little over a year and I thought it would be interesting to see what if any impact there has been on the number of tenants moving into a property for less than 6 months. This was one of the biggest concerns for landlords when it was introduced back in Dec 2018.
We have tracked the number of tenants moving out within 6 months over the past few years and we can see that the impact of the PRT has been proportionately similar across both cities but Edinburgh has been affected slightly more than Glasgow. In Edinburgh, when we look at the proportion of tenants moving out within 6 months we can see it going from 2.4% of our rental stock up to 7.5% – so it trebles since the introduction of the PRT. In Glasgow, it goes from around 2.1% up to 5.5% – so it more than doubles.
What does this mean for landlords?
- We have to bear in mind that in part, this has been impacted by the strong sales market in both cities in 2018 – which has meant some landlords are taking advantage of the reduced notice period and selling, so it’s not purely tenant driven.
- City Centre properties are by far the most heavily impacted – which is not a surprise given the type of tenant who moves into these properties. These tenants are more transient so they definitely move about more and are taking advantage of the shortened notice period.
- Rents are still very strong in most areas, particularly city centres, so for many landlords they are accepting this as part of the life cycle of their property but it will more than likely mean rents will go up as landlords may wish to mitigate any void periods during move in and out and the additional cost they may incur.