As Scottish Government proposals for rent controls and details of the Private Tenancies Bill are to be published this week, average rents in the country have fallen.
The latest Citylets Quarterly Report shows that rents have fallen from their second quarter 2015 peak of £762 per month down to £757.
Annual slowed from 5.4% last quarter to 2.9 per cent.
Citylets said the national figures reflect strong competing forces from within the market of sustained growth in Edinburgh and falls in Aberdeen.
Aberdeen, first recorded negative annual growth last quarter of 3.8 %, has fallen further recording annualised falls now down 6.7 per cent on last year with drops across all property sizes.
Edinburgh continues growth for the tenth successive quarter with annual growth of 7.5%.
Citylets founder Thomas Ashdown said the changes in Aberdeen may pose questions for the Scottish Government plans for rent controls.
He told insider online magazine Scottishhousingnews.com: “By the start of 2016, it will be a fact that no rental property type in Aberdeen will have outperformed inflation since the onset of the credit crunch. I would go further to say that rents may even fall to the same levels as 2008/9 which would be a significant drop in real terms.
“It would seem that Aberdeen now represents a clear example of how the Scottish PRS can self regulate. With so much concern in the investor community in relation to rent controls, the Scottish Government must surely want to consider whether the intended benefits outweigh the risks at this time.
“Rent controls are a palliative. Should they be administered if they materially undermine a possible cure of institutional PRS investment in city hotspots? Even those who would rather see no PRS at all must surely recognise the pragmatic need for current adequate supply.”
The average property in Edinburgh now rents for £942 per month. One and two bed properties have shown the steepest growth at 7.3%t and 8.5% respectively.
Glasgow is continuing to grow at 2.2% to £684 per month with annual growth slowing down from 4.4% last quarter.
Aberdeen’s slump continues for the third quarter in a row and is likely to continue throughout 2016.
Average rents are now below £1000 for the first time since the second quarter of 2013 at £995.
Dundee also experienced positive annual growth up 1.2% to an average of £574 per month.