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Cities behind 7.9 per cent annual growth in Scottish rents

Scotland’s urban Private Rented Sector shows little sign of levelling off according to the latest quarterly report from Citylets.

Figures to the end of December 2014 show that national rents have risen 7.9 per cent in the last year to stand at an average of £732 per month. This contrasts with just one per cent growth in the preceding year.The Scotland figure is heavily influenced by strong annual rises in three of the country’s main cities with Edinburgh at 9.5 per cent, Glasgow at 9.4 per cent and Aberdeen at 8 per cent. By contrast, Dundee registered a rise of only 3.2 per cent over the year.

The fourth quarter of the year (October-December) is usually the quietest time for lettings activity where seasonal falls are common. However, this year’s dip in average national rents was only £4 down from the country’s all time high of £736 seen in Q3 of 2014.

There is widespread concern that the private rental market in Scotland is experiencing severe and chronic localised shortages in supply. The oil city of Aberdeen has long been documented as an area of heightened concern. Prices uncharacteristically dipped in Aberdeen in Q3 but bounced back in Q4 to close at a record high. However, historic low oil prices are expected to impact in 2015.

Commenting on the latest findings, Citylets MD, Thomas Ashdown said:

“There is a very clear picture in the Scottish Private Rented Sector. Large City hotspots are driving up the national averages but the market remains sanguine in just about every town in the country. It’s hard to identify a single area outwith the major cities that have even kept up with inflation over recent years.

“Scotland needs more homes built and fast-across all tenures. As has already been said by many commentators across the entire housing sector, the situation is urgent and we need the figures to be acted upon now.”

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