01 Feb 2022
The cost of renting a home in Edinburgh has soared to a new all-time average high of £1,191 a month.
Citylets reveals this year-on-year jump of 9.8% in its latest quarterly report.
Property experts say that Edinburgh continues to suffer from a severe lack of stock, coupled with huge demand from potential tenants.
Meanwhile, in Glasgow, all types of property enjoyed double-digit rises in rental costs in the last year, with four and three bed homes leading the way.
Looking at the Scottish scene in general, Citylets comments that competition for homes to rent in many locations has been “frenzied”.
The typical home to rent north of the border now comes in at £869 a month – an increase of 5.2% in the last year.
Citylets says in its market overview:
“The high levels of rental activity in Q3 of 2021 continued deep into the fourth quarter of the year, sending stock levels down to record lows across Scotland.
“Competition for property to rent was frenzied in many locations, sending rents significantly higher and time to let (TTL) materially lower.
“Whilst stocks began to recover towards the end of the quarter, the average advertised stock levels over Q4 2021 were just 32% compared to the same quarter in 2018.
“Professionals in the lettings industry will be concerned that policymakers look beyond the headline figures to take full stock of the current situation and market dynamics before finalising any policies.
“The balance of supply and demand is currently unfavourable to tenants in many areas, and it would seem imperative that matters are not made worse regardless of good intentions.
“Anecdotal evidence from letting agents suggests retention of the existing size of the private rented sector is already challenging enough, with landlords already concerned over key matters of control and an increasing tax burden, whilst at the same time conscious of the buoyant sales market and opportunity to take profit.”
Glasgow saw an even-bigger percentage jump in rents than Edinburgh over the last year – up 15%, to an average of £974 per month.
TTL reduced by 11 days to just nine days.
Annual growth of over 30% was recorded for three and four bed properties against the backdrop of a severe supply shortage.
Citylets also says that continued reductions in average TTL in Aberdeen have filtered through to rents in the city - now posting positive annual growth of 0.7% to a typical £714 per month.
The steepest drops in TTL were once again for three and four bed properties, accompanied by growth in monthly rental costs of 9.5% (to £979) and 1.2% (to £1,458) respectively.
Adrian Sangster, leasing director at Aberdein Considine, said about this year’s prospects for the Granite City area:
“Unless there is a dramatic change, low availability of stock will remain the biggest challenge for those looking for a home in the area.
“A shortage of three/four bed family homes in particular, is likely to lead to rentals for these properties continuing their upward spiral.
“Demand for these, particularly in the suburbs and shire, remain high as increased home working means commuting distance for many is now less of a priority.”
Citylets also reveals there had been strong growth for larger properties to rent in Dundee, raising the city average to £675 per month with TTL continuing to fall - now at historic lows of just 15 days.