The average property to rent in Scotland’s private rented sector reached the highest level to date in the second quarter of 2018 at £799 per month, the latest index shows.
However, Scotland’s overall annual rate of growth remains low at 1.3% despite most large urban markets sitting at or near all-time highs, according to the data from the Citylets report.
Larger properties, in particular four bedroom homes, continued to post significant rises in many areas in line with the trend of increasing numbers of families looking for homes to rent, the index report also shows.
Indeed rents for four bedroom homes increased by 3.3% year on year to an average of £1,522 while one bedroom homes saw the next highest annual rise at 1.6% to £574 while two bedrooms increased by 0.5% to £737 and three bedrooms by 0.2% to £1,023.
Rents in Edinburgh reached another high in the second quarter, up 4.8% year on year to £1087 per month and the report says that it is likely that further highs will be reported in the third quarter as the market enters its peak season given. Rents have risen nine times out of the last 10 between spring and summer periods.
Securing a rented home in Edinburgh is described as ‘competitive’ with an average time to let of 26 days, just one day more than in the second quarter of 2017. All main Edinburgh markets posted strong increases with four bedroom properties outperforming the city averages rising a significant 6.8% year on year and taking just 20 days to let, down five days on last year.
The Glasgow rental market continues to operate to a steady trajectory with both average rents and time to let almost unchanged on last year. The average property in Glasgow now rents at £763 per month, up 1.1% year on year and takes 27 days to let. However, one bedroom properties in Glasgow saw rents increase year on year by 4.5%.
Rents in Aberdeen continued to fall to an average pf £740, down 6.1% on the second quarter of 2017 and broadly in line with trend over the past 18 months. But the data shows that rents for one bedroom properties fell by just 2.7%. Property to rent in Aberdeen is now £59 per month below the national average which was boosted by above trend rises in Edinburgh in particular.
Other major urban areas around Scotland also posted positive annual growth of between 2% and 4%. Dundee saw rises for all property types with the city average up 2.5% on last year to stand at £618 per month. One bedroom properties outperformed the rest of the local market up 4.9% year on year.
West Lothian averaged a 4.1% rise and there were also increases for South Lanarkshire of 3.8% and Renfrewshire saw a rise of 2.1% where four bedroom properties recorded double digit gains at 14% and 11.3% respectively.
‘There has been a lot of regulatory and tax change in the Scottish PRS of late such as the introduction of the new PRT and now Registration of Letting Agents, however the markets continue to chart broadly the same course,’ said Gillian Semmler, communications manager at Citylets.
‘Demand for larger properties remains high in many urban areas resulting in above average rises,’ she added.
Ian Lawson of Lomond Capital pointed out that there has been strong sustained demand for rented accommodation in Edinburgh and Glasgow. ‘Demand in the one to two bedroom markets from an investment point of view is busy and continues to offer new investors a route in,’ he said.
