Average rents in Scotland are continuing to rise, particularly in Edinburgh and Glasgow - but Aberdeen, where the local oil industry is in trouble, has seen reduced rents according to Citylets.
Rents in Scotland on the whole rose by 7.4 per cent over the year to the end of March, to stand at an average high of £751 per month. National rents have risen 16.4 per cent since 2008, around 2.5 per cent per year - approximately the same as long term inflation.
Properties of all sizes saw rent increases over the year with four bedders rising the most at 9.7 per cent reflecting the increased demand for family homes to rent across the country.
Edinburgh and Glasgow recorded similar annual growth of 7.7 per cent and 8.1 per cent respectively; Aberdeen also grew but at 2.2 per cent, representing a significant slowdown on annual inflation. Citylets says the Aberdeen market no longer seems to be on a homogenous drive upwards with clear demarcation between small properties, which rose in value over the year, and large properties which fell.
Citylets founder Thomas Ashdown says there is concern at the current status of private rental property in the light of likely law changes suggested by the Scottish Government.
We fully understand and support the intent to make renting in the PRS a better place. However, as I understand it, measures seem set to be introduced that could further limit supply at a time when there is a chronic shortage in major cities. The plan to have special measures to deal with rent rises in these areas seems like an overt case of addressing the symptoms whilst exacerbating the root cause.
There is no doubt that many small scale landlords will and indeed have already left the sector due to the increasing burden of legislation and spectre of decreased control over their asset. That being the case, the need to ensure favourable conditions for institutional investment is surely paramount yet it is presently uncertain as to whether this will be achieved near term he says.
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