What was the private rental market in Scotland like in Q1 2024?

The latest Citylets report is out now, revealing how the private rental sector across Scotland performed during the opening three months of 2024.

In the final months of somewhat controversial legislative measures that included an eviction moratorium and the much-publicised rent caps, the rental market across the country braced itself for changes from 1 April onwards.

During this quarter, conditions improved for tenants seeking new homes to let, as the rate of annual rental growth slowed once more, while the market grew less competitive, with properties let at a slower pace than seen in recent times. Rents across Scotland continued to rise in double digits, with an annual increase of 11.5% meaning the current average rent is £1,123. However, in Edinburgh and Glasgow, single-digit increases were seen, with rises of 7.9% and 3.5% respectively.

It remains to be seen how the market will be impacted following the lifting of the rent caps on 1 April, allowing increases of up to 12% to bring properties in line with ‘open market rate’.

Across Scotland, one-bedroom properties saw the highest increase in rates, rising 14.5% year-on-year to an average of £813 per calendar month. Across the last five years, two-bedroom properties have attained the largest increases in rental rates, rising 46.6% overall with a current average rental rate of £1,069 per month.

The average time to let across the country continued to slow, with properties taking an average of 28 days to let – seven days slower year-on-year. Overall, 22% of properties let within a week, and 65% within one month of appearing on the market. One-bedroom properties were in the highest demand, letting in only 20 days on average; 30% of these properties let within a week, and 76% within a month.

The rental market in Edinburgh

Average rents in Edinburgh

The average cost of renting a property in Edinburgh continued to steady following years of double-digit rates rises and frenzied demand for lets in the capital. The average rental rate was £1,481 per calendar month for a property in Edinburgh, a rise of 7.9% year-on-year.

In alignment with the country-wide figures, one-bedroom properties in Edinburgh saw the largest rise in rental rates, increasing 11.8% annually to a new average of £1,035. This hints at a continuing high demand from young professionals, and once again, this figure is very close to the Scottish national average cost for a two-bedroom property, highlighting the additional financial pressure on those tenants living in Edinburgh versus elsewhere in Scotland.

Three-bedroom properties also saw a significant jump in rental rates, increasing 10.7% to £1,896 per calendar month, hinting at pressure from longer-term, family tenants in the market alongside student lets.

Time to let in Edinburgh

Properties in Edinburgh let in 28 days on average, ten days slower than last year in welcome news for tenants.

One-bedroom properties performed strongest, letting in 18 days. 33% of one-beds were let within one week of being advertised, with 80% snapped up within a month of appearing on the market.

Overall, however, the market was much slower than we have seen in recent times, with 22% of properties let within one week, and 65% let within one month, showing much calmer the market has become, in a continuation of the activity seen towards the very end of 2023.

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The rental market in Glasgow

Average rental rates in Glasgow

According to the latest Citylets figures, Glasgow continued to see a rise in its rental rates, however at a much slower pace than observed recently. During the first quarter of 2024, the average rental rate for a property in Glasgow was £1,144, which is just 3.5% higher than the previous year.

Once again, one-bedroom properties achieved the highest average rental increase, rising 4.9% annually to £871 per calendar month. In alignment with the rest of Scotland, and in particular alignment with Edinburgh, this indicates increasing demand across the board from young professionals looking for a home in one of Scotland’s major cities.

In surprising news, the average rental rate for three-bedroom properties in Glasgow declined by 5.1% annually, to £1,529, while there was a marginal increase of just 0.2% for four-bedroom properties, signifying lower demand for this property type, or perhaps even lower turnover, with tenants for this property type tending to stay in situ for longer.

Time to let in Glasgow

Coordinating with Edinburgh and Scotland as a whole, the average time to let a property in Glasgow was 28 days, 11 days slower than the previous year.

One-bedroom properties continued to outshine the rest of the market, letting in 20 days on average, although this is also nine days slower than last year.

21% of properties for let in Glasgow were snapped up within one week of going on the market, and 63% were secured within one month. By contrast, 28% of one-bedroom homes let within a week, and 74% within a month, highlighting particular demand for this property type.

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The rental market in West Lothian

Average rents in West Lothian

The average cost of rent for a property in West Lothian rose 12.3% during the first quarter of 2024, to £932 per calendar month.

Three-bedroom properties experienced a significant 24.5% increase in average rents, rising to £1,160 and hinting at strong demand from family tenants combined with low stock levels. This property type has seen the biggest change in rental rates if we look back at the last five and ten years, rising 53.2% and 89.9% respectively during these periods.

The average rental rate for a one-bedroom property rose 9.2% annually, to £628, offering a much more affordable alternative to the major cities.

Time to let in West Lothian

The average time to let a property in West Lothian was 21 days, five days quicker than the same time last year, indicating increasing demand from tenants looking for a home in a region where there is low availability. 21% of properties were let within a week, and 77% within a month of appearing on the market.

One-bedroom properties let the quickest, taking just nine days, which is 12 days faster year-on-year. When comparing how quickly these properties let, it’s clear to see the high demand for one-bedroom homes, as 44% let within one week, and 100% of West Lothian’s one-bedroom homes to rent were let within one month of being advertised.

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Find out more 

Read the full Citylets report.

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ESPC Lettings    

If you’re interested in entering the buy-to-let market or are a landlord looking for advice, ESPC Lettings can help. As a letting agent based in Edinburgh, we can assist with all stages of renting out a home, from finding the right property to sourcing tenants to property maintenance.

Get in touch with the team today on landlord@espc.com or 0131 253 2847.