Recent figures show that rents in Scotland have reached a record high, with demand from renters continuing to exceed supply.
The report for the second quarter of 2017 indicates that rents rose by 1.5% year-on-year to hit an all-time high of £789 per calendar month. This was led by growth in Edinburgh and Glasgow.
Build to Rent
A key driver of the Scottish rental market is the rapidly growing Build to Rent. As Stuart Montgomery, Director of Lettings at Rettie & Co, observes: ‘Build to Rent is now emerging in Scotland as a key new residential use class, with over 2,500 units now in the pipeline in Edinburgh and Glasgow.’
By region, the Citylets report offered these insights into rental markets in Aberdeen, Edinburgh, and Glasgow:
The rate of decline eased in the quarter from -11.2% to -5.2%. In addition, there was positive growth for four-bedroom properties, representing the first rise for any property type in the city for nine quarters.
Average rents in Aberdeen are currently £788pcm – just £1 below the national average.
Lisa Breber of Stonehouse letting noted: ‘There is also evidence to suggest that the decrease in rental levels is now beginning to stabilise. Stock levels in Aberdeen remain high, however, generally a well presented and fairly priced property will let quickly.’
In Scotland’s capital, there has been positive annual growth every quarter for the last 8 years. Now, the average property to rent here stands at £1,037pcm, representing a new all-time high.
The Citylets Index for the city indicates that there has been around a 4% growth annually since the start of 2008. However, this figure has risen to around 6% since 2012.
Glasgow has seen year-on-year gains regularly hit between 4-5%. Rents here are now £755pcm, a rise of 5% from the same period in 2016. All property types here experienced positive gains, with rents for four-bedroom dwellings rising by 10.1% over the year.
Thomas Ashdown, MD of Citylets, observed: ‘Our latest report underlines the metronomic strong growth in Scotland’s largest cities.’
‘Edinburgh has recorded positive annual growth every quarter for a full eight years and averages 6% over the last five years. Glasgow is up 5% on average over the same period,’ he continued.