As demand from renters continues to rise and exceed the supply, rents in Scotland have hit a record high. The latest quarterly report by Your Move for Q2 2017 has revealed that rents have grown 1.5% year-on-year and have currently reached an all-time high of £789 per calendar month, this being led by growth primarly in Edinburgh and Glasgow.
In both of these regions the growth has hit 5% for Glasgow and 5.2% for Edinburgh, therefore they are seen as strong contributors. The Scottish market is partially supported by the rapidly growing build to rent sector.
“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,” said Stuart Montgomery, director of lettings at Rettie & Co.
Citylets has offered insight into the markets of Glasgow, Edinburgh, Aberdeen and Dundee.
Glasgow has seen year-on-year gains regularly in the 4-5% region with the average rent now at a record £755pcm, which is up 5% on this time last year. All property types have recorded positive gains, 4 bed properties for rent have risen 10.1% over the year, 29.3% over three years and 42.7% over the last five.
As Glasgow has deep roots in public sector housing, the average rate of growth citywide rents being 5% over the one, three and five-year terms is a mark for clear change in the region.
For the last 8 years, the annual growth in the capital has been recorded as positive. The average property rent in Edinburgh is now £1,037pcm, which represents a new all-time high.
The Citylets Index for the city is 138.8, circa 4% growth per year since the start of 2008, however it is averaging around 6% since 2012.
The average rent in Aberdeen currently stands at £788pcm, which is £1 below the national average but £33 above Glasgow.
The rate of decline in the city has jumped from minus 11.2% to minus 5.2% , this quarter we have witnessed a growth in four-bedroom properties, which is a positive growth for any property in the last nine quarters.
Although Glasgow is expected to continue to rise, with speculation it would become Scotland’s second priciest city, Aberdeen may well remain above it.
Markets in other locations around Scotland, such as Dundee have risen by 1% year-on-year. Areas such as West Lothian, South Lanarkshire and Renfrewshire all rose by the same amount, representing a change from previous quarters. In case of West Lothian in particular, this is unlikely to represent any systemic long term change.
In case of Scotland’s PRS it would seem that there is a continued growth in major urban areas.
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