Is the Scottish Rental Market Flatlining in 2026? (with Mark Shanta)

Episode OverviewIn this episode of the Scottish Property Podcast, we’re joined by Mark Shanta, property expert, letting agent, and returning guest, for a deep dive into the Scottish property market at the start of 2026.Together, we unpack what’s really happening across sales, rentals, tax policy, and regulation — cutting through the noise to give landlords, investors, and property professionals a clear, on-the-ground view of where the market stands and what’s coming next.From flatlining rents and budget uncertainty, to Aberdeen’s standout performance and the rise of alternative investments like paddle courts, this episode is packed with insight you can actually use.

🔍 Episode Highlights

🏘️ Market Sentiment Across Scotland

• Glasgow sales market remains steady but not buoyant
• Standard stock continues to sell, while standout properties still attract closing dates and multiple offers
• City-centre flats face more resistance compared to well-located suburban homes

💷 Rental Market Update

• Scottish rents have largely levelled off, signalling the end of the post-COVID surge
• Glasgow rents increased by just 0.6%, while Dundee saw a correction, with rents falling
• Rising supply, affordability ceilings, and wage pressure are now capping rental growth

🧾 Scottish Budget & Tax Updates

• Additional Dwelling Supplement (ADS) remains at 8%, despite rumours of a rise to 10%
• New Council Tax Bands I & J (for £1m+ and £2m+ properties) set to begin in April 2028
• Ongoing uncertainty around a potential 2% landlord income tax increase in 2027/28

📊 Smart Tax & Pension Planning

• Mark shares how SASS pensions can be used to offset corporation tax
• Directors can invest up to £60,000 per year, retaining profits within the business
• A powerful strategy for long-term planning when used correctly

📈 Investment Opportunities to Watch

• Paddle courts emerging as a fast-growing niche, especially in Glasgow — but roof height is critical
• Aberdeen highlighted as one of the strongest investment locations in the UK, offering high yields and early signs of capital recovery

⚖️ New Regulations: Awaab’s Law

• New landlord obligations around damp and mould, with stricter investigation and repair timelines
• Emphasis on documentation, response times, and proactive property management
• A major shift landlords need to prepare for ahead of expected implementation in late 2026