02 Nov 2018
Landlords in both Edinburgh and Glasgow enjoyed big year-on-year increases in rents in the third quarter of this year, according to Citylets.
Aberdeen has meanwhile continued its progress towards a levelling off in rents after being hit by the recent oil sector downturn.
Adrian Sangster, leasing director at Aberdein Considine, told Citylets: “In the north of Scotland, we are continuing to experience a market where stock is not an issue, whilst in the south there is insufficient availability of properties to meet tenant demand.
"This is resulting in the almost-inevitable increase of rent values in the south compared to the continued reduction in the north, albeit at a much slower pace.
"Whilst there are some encouraging sounds from the oil industry with several new projects being announced, I do not anticipate it making too much of an impact in the north in the short-to-medium term.
"However, whilst the country’s legislators seem hell bent on discouraging landlords to remain in the sector, I can only see the rental trends in the south continuing unabated.”
Typical private rented sector rents in Scotland in the third quarter were up by 2.2% year-on-year to £789 per month on average.
The rate of rental growth in Edinburgh, which quickened in Q2, was sustained in Q3 - up by 5.6% year-on-year to another all-time-high at a typical £1,107.
Citylets says: "Positive annual growth in the capital has now been recorded for 32 consecutive quarters.
"Four-bed properties again saw the largest rises over the one-year and 10-year perspective, up 10.8% and 53% respectively (to £2,003).
"The average time to let in Edinburgh during the peak Q3 period was just 21 days, and just 17 days for one-bed properties. The large majority of properties in Edinburgh (76%) are let within a month."
The typical rent in Glasgow jumped by 4.9% year-on-year to £785. Leading the market for rises were four-bed homes which soared by 17.1% to an average £1,633.
There have been some welcome signs of an improvement in the Aberdeen rental market.
Typical rents in Aberdeen were down by just 3.6% year-on-year to £746, while the drop for one-bed properties was only 2.7% to £474.
Times to let in the Granite City have been getting shorter, dropping by four days to 45 on average while one-bed homes were down by five days to 42.
One local letting agent said a number of properties had been let within a week of advertising - a significant improvement compared with previous quarters. Demand for quality one-bed properties was said to be high, with a lack of supply.
Knowing how the land lies comes with experience. At Aberdein Considine, we have been letting homes across Scotland since 1981.
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