PRS Market Report 1st Aug 2017
The latest research from Citylets has revealed positive growth in the 3 months to the end of June in the Private Rented Sector Scotland wide as demand continues to outstrip supply.
The overall national average grew by 1.5% year on year to £789 per month. This was led by growth in Edinburgh (5.2%) and Glasgow (5%), combined with the rate of decline in Aberdeen easing. Average rents in Aberdeen are currently £788pcm – just £1 below the national average.
Rents in Edinburgh increased 5.2% year on year to an average of £1,037 per month, well above any other location in Scotland. All major markets in the city recorded strong gains with 2 beds performing best, up 6% at £950 per month. 1 bed flats are reaching an average of £713, 3 beds £1350 and 4 bed £1863. Average time to let in Edinburgh is 25 days, and 25% are let within a week and 67% let within a month.
Looking at West Lothian, 2 beds are up 3.1% to £597. 1 beds are £471, 3 bed £701 and 4 bed £991 bringing the overall average to £655. Average time to let is 49 days, with 7% of properties letting within a week and 40% letting within a month.
The report says that the outlook for Scotland’s private rented sector seems to be one of continued growth in major conurbations, underpinned by the central belt and, should Aberdeen’s market fully level off or indeed rebound, nationally rents could see 3% to 4% rises in the near future.
Citylets managing director Thomas Ashdown says ‘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.’
The report says that it is hard to foresee the market declining any time soon nor falling below the £1,000 mark even during the quieter end of year period.
See accompanying newsletter article to access the full Citylets report, with commentary by The Key Place’s Linda Bendle on page 12.