What was the Scottish rental market like in Q2 2023?
According to the latest Citylets report on the Scottish rental market, the second quarter of 2023 was one which saw demand outstrip supply once more, and rental rates rise by double digits across the board, despite the introduction of the Scottish Government’s ‘rent cap’.
Average rental rates for new tenancies rose in many areas of Scotland by double digits for the third time in a row, as the impact of the Cost of Living (Tenant Protection) (Scotland) Act 2022 took hold. To offset the freeze in rental rates for existing tenancies, compounded by continuing rises in mortgage rates, many landlords have been raising the rents to maximum levels for new tenancies, exacerbating the supply-demand imbalance that has affected the market so severely in the last few years.
The new average rental rate for Scotland’s private rental sector sat at £1,081 per month, however the rate of growth eased to 11.4% year-on-year from 12.4% in the first quarter of 2023. In Edinburgh, the rental rates jumped 15.1% year-on-year to a new average of £1,477, while in Glasgow, a similar increase of 14.4% saw rents rise to an average of £1,141. Across Scotland, two-bedroom properties saw the biggest increase, with a 12.8% rise taking the average rental rate of this property type to £1,006 per calendar month.
Supply and demand remained an issue for the rental market, with stock levels down 10% year-on-year as we head into Q3, traditionally the busiest period of the year for new tenancies. Agents and landlords reported an average of 100 enquiries per property advertised, demonstrating how strong the demand continued to be for quality rental properties across the country.
The average time to let across Scotland was 19 days, with one-bedroom properties letting the fastest in 16 days.
The rental market in Edinburgh
Average rents in Edinburgh
During the second quarter of 2023, the average rent for property in Edinburgh jumped 15.1% to £1,477. Aligned with the Scotland-wide average, two-bedroom properties in the Capital experienced the biggest rise in rental rates, with a 17.4% increase taking the average rate to £1,362.
A lack of available stock, combined with the rent cap pushing landlords into raising rates substantially for new tenancies to make up the shortfall, can be attributed as the cause for these increases.
Across the board, properties in Edinburgh have seen substantial growth in rental rates, but especially for those looking at renting out a property in the Capital as a longer-term venture; on average, rental rates have grown by 80.6% for Edinburgh properties over the last 10 years, demonstrating how strong an investment this can be.
Time to let in Edinburgh
42% of properties for let in Edinburgh were let within a week, and the average time to let for properties in Edinburgh was 14 days, one day faster than the same time last year.
One-bedroom properties were the most in-demand with tenants, with an average time to let of nine days, four days quicker year-on-year. 95% of one-bedroom properties for rent in Edinburgh were let within the month, with 52% letting within just a week of appearing on the market.
Search for houses and flats for sale in Edinburgh.
The Glasgow rental market
Average rents in Glasgow
According to Citylets data, the average rent for properties in Glasgow has increased substantially over the last quarter, rising by 14.4% annually, to a new average rental rate of £1,141 per calendar month.
Four-bedroom properties appeared to be in the highest demand in Glasgow, perhaps due to the prevalence of the student market in this highly-regarded university city. Average rents for this property type increased 17.4% year-on-year to a rate of £2,566. This means that four-bedroom properties in Glasgow have experienced a stunning growth of 111% over the past decade; truly a sign of how significantly the rental market in Glasgow has developed in recent years.
Time to let in Glasgow
Examining the Citylets data, we can see that the average time for a property to let in Glasgow was 18 days, four days slower than the same time last year. 34% of properties for rent in the city let within a week, while 80% were let within the month.
One-bedroom properties in Glasgow let the quickest in just 15 days, however it was four-bedroom properties which reported the strongest results overall, which may be due to the strength of the student market in the city. This property type let within 16 days on average, with 48% of four-bedroom properties let within a week, and 92% within a month.
Search for houses and flats for sale in Glasgow.
The West Lothian rental market
The average rental rate for properties in West Lothian was £871 during Q2 2023, according to the Citylets data, indicating a rise of 15.1% annually.
Time to let in West Lothian
Properties in West Lothian let in an average time of 19 days, seven days slower than the same time last year – indicating that the market in this area is experiencing some changes.
24% of all available West Lothian rental properties were let within a week, and 72% were let within a month.
33% of West Lothian's one-bedroom properties, which had an average rental rate of £599, were let within a week of being advertised.
Search for houses and flats for sale in West Lothian.
Find out more
Search houses and flats to rent in Edinburgh.
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.