Citylets report larger homes experience big jump in rents

Three and four-bed properties experienced the biggest increase in rental costs in Scotland in the third quarter of this year. 

Tenants seeking more room for home working as well as extra living and outdoor space during the Coronavirus are thought to be major drivers behind the popularity of larger properties. 

The latest Citylets report for Q3 shows that the average monthly rent for four-bed homes in Scotland soared by 13.6% year-on-year to £1,733, while three-bed properties jumped by 10.4% to £1,140. 

The property-letting portal says that pent-up demand was released at the start of the quarter. 

It adds: "Traffic to Citylets platforms was materially above average over the whole quarter and historically high levels of stock returned to normal, with some markets rapidly overshooting to unseasonably-low levels.  

"Indeed, the Scottish private rented sector was already in motion before the official end of lockdown.” 

Pandemic impact

Citylets says there has been no evidence that Scotland's main cities have been substantively impacted by the pandemic in terms of tenants seeking to move out of urban areas, as reported in some large English cities.  

The portal reports that the Glasgow market actually experienced one of the most pronounced upticks in demand of all areas in Scotland, urban or rural, sending average monthly rents in the city up a “significant” 4.7% year-on-year to £841. 

It adds: "It is likely that many tenants sought to improve their choice of rental property rather than vacate the city, but on any view the data re-affirms the region as having the strongest sustained growth in recent quarters.  

"Fast-rising rents point to very competitive times for tenants seeking quality property to rent in Scotland's largest city." 

Demand 

Citylets also comments that there were predictable rises in demand for property to rent in picturesque and accessible towns and villages, especially in the Scottish Borders and Perthshire.  

It goes on: "The market uptick, so often seen in the third quarter of the year, looks set to be sustained throughout much of Q4 2020 with unseasonably-high demand evident since the first announcement of renewed restrictions in west Scotland in September. The race for space seems on.  

"Despite the rising curve of the virus second wave, the property market will be optimistic that a shutdown even during a full lockdown can be avoided." 

In Edinburgh, rents for all property types were down slightly year-on-year. The typical home was let out in Q3 for £1,139 a month - a year-on-year slip of 0.8%. 

The average monthly rent in Aberdeen was down 0.4% to £713, though the cost of a typical three-bed property was actually up 0.3% to £971. 

"In particular, we have seen increased demand for family homes in smaller towns and rural areas.  

"I believe this may be a reaction to months of lockdown and people looking for more space.  

"At the other end of the market, we have also witnessed increased demand for one beds in university towns and cities from students looking for sole occupancy.  

"Previously, they would have been expected to be in halls or sharing houses of multiple occupancy with other students. 

"These examples show how flexible and adaptable the private rented market is and how it remains such an important provider of housing in this country." 

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