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Official figures show rent increases in Scotland are largely below inflation

In particular, a total of 16 out of the 18 rental market areas across Scotland have seen below inflation changes in average rents for two bedroom properties, the most common size of property in the private rented sector.

Some areas of the country have seen higher increases over these years, including Aberdeen and Aberdeenshire where average rents for all property sizes have increased well above inflation. In Lothian increases for one, two and three bedroom properties have been above inflation.

A breakdown of the figures show that the city of Aberdeen and Aberdeenshire has seen the highest increase in private rents for two bedroom properties from 2010 to 2014, with average monthly rents rising by 39.8% over four years.

Average rents in the Lothian area have risen by a cumulative 17.2% over the last four years, whilst rents in Greater Glasgow have increased by 11.1% and rents in Fife have risen by 9.8% over this time period.

For the remaining areas of Scotland, cumulative increases over the last four years have ranged from 5.7% in the Highlands and Islands to 0.6% in the Scottish Borders.

In addition, three areas of the country have seen cumulative decreases in average rents from 2010 to 2014 with the Ayrshires seeing an 0.8% fall, Argyll and Bute a 1.5% fall, and West Dunbartonshire a 2.7% fall.

These regional trends combine to show an 11.2% cumulative increase in average rents from 2010 to 2014 for 2 bedroom properties at the Scotland level. For the latest year the annual increase has been 3.6%.

The data also shows that over the four year period, average rents for two bedroom properties in the Aberdeen, Aberdeenshire and the Lothian areas have risen faster than the consumer price index, whilst changes in average rents for two bedroom properties in other areas of the country have been below the rise in the consumer price index.

For the year to the end of September 2014, Aberdeen and Aberdeenshire had the highest average monthly rents for two bedroom properties across Scotland at £898 per month. Other areas with higher rents included Lothian at £779, Greater Glasgow at £626, and East Dunbartonshire at £604.

Areas with the lowest average rents for two bedroom properties included North Lanarkshire at £464, the Ayrshires at £461, the Scottish Borders at £444, and Dumfries and Galloway at £442.

The data is from the first Private Sector Rent Statistics report is a result of a Scottish Government commitment to publishing more comprehensive statistics on rent levels across the country.

‘These statistics highlight wide variations in the rate of rent increases, with hotspots in the Lothian area and in Aberdeen, but modest rises, or even falls elsewhere. This is clearly good news for those tenants whose rents have risen at or below the rate of inflation, but a real problem for those affected by larger increases in the hotspot areas,’ said Housing Minister Margaret Burgess.

‘Last month I launched the consultation on a new tenancy for the private rented sector, which recognises that rising rents are a problem in some areas and is inviting views on the issue. In addition to this we continue to work with the house building industry to deliver more new homes,’ she explained.

John Blackwood, chief executive of the Scottish Association of Landlords (SAL) said the figures clearly demonstrate the complex picture of rent levels in the private rented sector across Scotland. 

‘Many people choose to rent from a private landlord or letting agent because it allows them to live in a property or area they otherwise might not be able to. Renting in the private sector also allows families to be flexible and able to adapt to changing circumstances of modern life,’ he explained.

‘These figures show that uniform solutions, such as rent controls as have been proposed by some, would not tackle the underlying problem, would harm investment in the sector in Scotland and make it harder to tackle the current housing crisis,’ he added.

 

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