Rent on rise as demand increases

Private sector rents rose by nearly six per cent over the last year, as would-be property buyers were locked out of the market by a lack of mortgage finance, new figures show.

A shortage of good-quality property has driven the increase in rents, according to the latest residential lettings survey by the Royal Institution of Chartered Surveyors (Rics) Scotland, covering the period from May to July.

Rents also increased by an average 5.9 per cent over the last 12 months.

This trend looks set to continue, with survey respondents predicting a 4.8 per cent increase over the next 12 months.

While demand from potential tenants in Scotland continues to grow, it is at a much slower pace than in recent quarters.

Sarah Speirs, director of Rics Scotland, said: “While tenant interest is still high, what remains to be seen is whether many are willing to meet the increasing rents being demanded.”