The Scottish Rental Market 1st Nov 2015

In the third quarter of 2015 (1st July to 30th September), the Scottish Private Rented Sector (PRS) has slowed, with stable or declining rents in most of the major Scottish cities, although demand for rental properties remains high.

The Citylets Quarterly Report (see table below) reveals that average rents have decreased from their Q2 2015 high of £762 per month, down to £757. Annual growth in Scotland has slowed over the last quarter from 5.4% to 2.9%. However these numbers are inclusive of the overall downturn in rents in Aberdeen, whilst Edinburgh rents continue to grow (annual growth being 7.5%). The majority of Scottish towns have underperformed inflation, which begs questions about the need (or lack thereof) to introduce rent controls. In fact, the Scottish Government’s own figures show that very few areas have experienced rent increases over the rate of inflation.

The average property in Edinburgh will achieve a monthly rent of £942 and takes 20 days to let. 1 and 2 bed properties have enjoyed the best growth at 7.3% and 8.5% respectively and take 16 and 19 days to let. In West Lothian, the average rent is £626, up 2.6% on this time last year.

In the third quarter of 2015 (1st July to 30th September), the Scottish Private Rented Sector (PRS) has slowed, with stable or declining rents in most of the major Scottish cities, although demand for rental properties remains high. 

The Citylets Quarterly Report (see table below) reveals that average rents have decreased from their Q2 2015 high of £762 per month, down to £757.  Annual growth in Scotland has slowed over the last quarter from 5.4% to 2.9%.   However these numbers are inclusive of the overall downturn in rents in Aberdeen, whilst Edinburgh rents continue to grow (annual growth being 7.5%).  The majority of Scottish towns have underperformed inflation, which begs questions about the need (or lack thereof) to introduce rent controls.  In fact, the Scottish Government’s own figures show that very few areas have experienced rent increases over the rate of inflation.

The average property in Edinburgh will achieve a monthly rent of £942 and takes 20 days to let.  1 and 2 bed properties have enjoyed the best growth at 7.3% and 8.5% respectively and take 16 and 19 days to let.  In West Lothian, the average rent is £626, up 2.6% on this time last year.

The Lettingweb Lettingstats 2015 report reveals that within Edinburgh the average rent for 2 bed properties advertised during the summer remains unchanged compared to the same period in 2014.  However there has been an increase of 1% in the last quarter to £824.  The average rent from a 1 bed property is £623, up 2% compared to this time last year.  3 bed properties are seeing a decrease in rent by 1%.

Overall, the Private Rented Sector in Scotland continues to thrive.  Demand from tenants for good properties remains high and despite the shortage in supply, rents are beginning to even out across most major cities, proving that rents are not out of control at all.  Government proposals for rent controls and ending the no fault ground for repossession may be causing a bit of uncertainty, however landlords must still be encouraged to invest in the buy to let market in order to increase the much needed supply.

On a more local level, The Key Place continues to experience high demand in all areas in which we operate for good, well presented properties.  Whilst rents are not quite on a par with the major cities, there has still been significant growth over the last few years.  Given property prices in these areas, rental yield will be higher, and so investment is well worth consideration.  The Key Place can advise.  We are pleased with the number of enquiries per property and are noticing a decrease in voids due to competition for properties.  Over the last year and a half we have been compiling local statistics which will keep you better informed about what is going on in your specific areas.  The Key Place looks forward to sharing our findings with you very soon.  In the meantime, if you have any specific questions about buy to let, please do not hesitate to get in touch.