The Scottish Property Letting Market Continues to Show Strength

Latest figures show the Scottish property letting market continues to show strength.

Activity in the Scottish property-leasing market continues to strengthen, despite negative factors such as the big rise in the cost of living and Russia’s invasion of Ukraine.

Rents for homes in Edinburgh and Dundee have just hit all-time highs. Meanwhile, Glasgow has enjoyed strong double-digit growth and Aberdeen has experienced a welcome upturn in its fortunes.

In its report for the first quarter of 2022, Citylets reveals that rents for Scottish homes have jumped by an average 8.5% year-on-year to £896 a month.

Larger properties performed even better than other sizes of accommodation north of the border – with the typical leasing cost of a three-bed now up 11.6% a month to £1,144 and a four-bed ahead by 11.5% to £1,641.

The market in Edinburgh is red hot, with the cost of renting the average home now at a record £1,214 a month – a year-on-year rise of 14.2% as demand continues to outstrip supply.

Four-beds in the capital led the way, soared by 27.1% to £2,211.

Dundee was also in record-breaking form, with the typical leasing cost jumping by 12.5% in the last year to £722 a month.

The average rent in Glasgow has rocketed by 16% in the last year to £972 a month, with four-beds surging by 19.8% to £1,879.

There was also welcome news for landlords in Aberdeen, where the leasing market has suffered in recent years from the last oil industry downturn.

The average rent in the Granite City is up 3.4% year-on-year to £723 a month, and Citylets says this is the city’s first significant annual rise for a number of years.

Citylets says in its overview of the Scottish market that the first quarter of this year witnessed more normalised city living as increasing numbers of offices reopened and the threat of fresh pandemic lockdowns receded.

It adds:

“Concerns over the rising cost of living and general pervasive uncertainty, supercharged by war in Europe for the first time in nearly 80 years, all failed to dampen demand for rental property in the Scottish private rented sector which, relative to supply, has sent rents further upwards.

“Available stock levels remain constrained, though moderately elevated above the historic lows reported last quarter.

“A buoyant sales market continues to attract landlords out of the sector, rendering the outlook for stocks challenging. With the market remaining in a precarious position, it remains paramount that proposed legislative changes do not have unintended consequences for available property supply.”

Citylets says the swing in the fortunes of the Edinburgh rental market became more pronounced in the first quarter, with average rents rising an “unprecedented” 14.2% as demand continued to outstrip supply.

It adds:

“The return of competition in the seasonal student market sent four-bed rents soaring 27% compared to the subdued market of last year.”

In Glasgow, time-to-let remains at historic low levels – currently 13 days - and the stock of properties is still only around a third of the pre-pandemic era.

Citylets says Aberdeen stands out among Scotland’s key cities for its continued reduction of supply over the quarter, which is reflected in rising rents and a fall of time-to-let by 17 days to average 37.

Four-beds saw the biggest year-on-year increase in rents in the Granite City – ahead by a typical 6.3% to £1,506 a month, with three-beds next best after jumping 4.1% to £914.

Jade Shepperdson, a lettings manager in Aberdeen with Aberdein Considine, told Citylets:

“After a busy end to 2021, the first quarter of the year has continued in the same vein. Increased demand for one and two bed flats has resulted in overall stock levels reducing across the city.

“This has led to competition in the market, which has in turn started to result in an increase in rentals achieved. We predict this to continue into the historically-busy spring/summer market.”