Rents in Scotland reach record highs

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.’[1]

By region, the Citylets report offered these insights into rental markets in Aberdeen, Edinburgh, and Glasgow:

Aberdeen

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.’[1]

Edinburgh

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  

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.

Strong Growth

Thomas Ashdown, MD of Citylets, observed: ‘Our latest report underlines the metronomic strong growth in Scotland’s largest cities.’[1]

‘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.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/7/rents-hit-record-high-in-scotland-as-demand-far-exceeds-supply