The first quarterly report of 2017 into the state of Scotland’s private rented sector has shown a rise in the average rental cost among a series of mixed results.
Citylets, reckoned a barometer of Scotland’s private rental market, released the figures today, showing some of the regional differences in the country.
Nationally, the private rented sector, or PRS, showed a slight increase in the national level, largely fuelled by growth in Scotland’s two largest cities, Edinburgh and Glasgow.
Edinburgh recovered from a dip at the end of last year to once again have an average monthly rent of more than £1,000.
That is higher than the Scottish average, which is £768, compared to the figure for Scotland’s capital of £1,023.
But Aberdeen continues to decline amid ongoing struggles in the oil and gas industry. It will soon be overtaken by Glasgow for the first time, according to Citylets analysis, with Scotland’s largest city’s average rent currently standing at £740 compared to Aberdeen’s figure of £768.
Thomas Ashdown, managing director and founder of Citylets, said: “The Q1 numbers are noteworthy on a number of levels including Aberdeen now seemingly finding its new level and likely to level off by the end of the year.
“Glasgow, historically a social rent city, looks set to overtake the UK’s oil and gas capital in Q2 – something nobody would have predicted just three years ago - and Edinburgh reached its highest-ever level.
“Strong growth has returned to the central belt at circa 5 per cent, slightly down on the longer term trend of 6 per cent and possibly representing a new norm for the major cities in the region.
“The findings also represent further evidence of the pressing need for Built to Rent and other related initiatives to be rolled out to increase supply for the benefit of the Scottish housing market.”