What was the private rental market in Scotland like in Q2 2024?
The latest Citylets report is now available, detailing the performance of Scotland's private rental sector during the second quarter of 2024.
During Q2 there were some significant shifts in political influence on the sector, while the 1st of April saw the launch of the new Housing Bill that changed rental legislation - the eviction moratorium and controversial 3% rent cap have now ended.
The report indicates that the property rental market across Scotland is starting to resemble the pre-pandemic period, with figures still considered strong as we head into what is traditionally the busiest time of the year. Tenants will be pleased to hear that rents are no longer increasing at sharp annual rates, but it's still uncertain whether growth will align with inflation in the future.
Although rent increases within existing tenancies are allowed within the specified limits, the Citylets report highlights that tenants have largely been accepting Rent Increase Notices due to the fact that many properties are currently rented below open market value. This has motivated tenants to remain in their homes for longer periods, thereby limiting the availability of rental properties.
During this quarter, rents throughout Scotland continued to rise in double digits. Q2 of 2024 saw an annual increase of 11.7% and a current average rent of £1207. Despite this, Glasgow saw a single-digit increase of only 3.7% while the rent in the capital also increased by a single-digit at a rate of 6.6%.
Across Scotland, as seen in Q1 of 2024, one-bedroom properties experienced the highest increase in rates, rising 14.3% year-on-year, meaning the average rent per calendar month for this property type rose to £841. In the last five years, three-bedroom properties have achieved the biggest increases in rental rates, rising 51% overall with a current average rental rate of £1,628 per month.
With properties taking an average of 24 days to let, the average time to let increased slightly compared to the first quarter of 2024 but was five days slower based on year-on-year data. Overall, 24% of properties let within a week, and 71% within one month of appearing on the market. One-bedroom properties were in the highest demand, letting in only 20 days on average; 28% of these properties let within a week, and 77% within a month.
The rental market in Edinburgh
Average rents in Edinburgh
The average rental rate in Edinburgh continued on a steady single-digit growth trend, after double-digit rates increases seen in previous years. The average cost of renting a property in the capital was £1,574 per calendar month, which is an increase of 6.6% compared to the same period of 2023.
As seen across Scotland, one-bedroom properties in the capital experienced the biggest increase in rental yields, rising 8.1% year-on-year to a new average of £1,080. This trend continues to hint at demand from young professionals hoping to rent in the capital. These figures also highlight the stark comparison between tenants living in Edinburgh versus elsewhere in Scotland, as the average rental cost for a one-bed property in the capital is close to the Scottish national average rental cost of a three-bedroom property.
With an annual increase of 7.4% to a rental rate of £2,058, three-bedroom properties were the second highest increase in the capital, hinting at pressure from longer-term, family tenants in the market alongside student lets.
Time to let in Edinburgh
In welcome news for tenants, properties in Edinburgh let in 22 days on average, 8 days slower than the previous year, allowing tenants more time to secure their next property.
As seen in Q1, one-bedroom properties in Edinburgh once again performed strongest, taking just 17 days on average to let. 33% of one-beds were let within one week of being advertised, while 82% found new tenants within one month of first appearing on the market.
The time taken to let three- and four- bedroom properties improved significantly during the period compared to Q1, with three-bedroom properties taking 29 days to let in Q2 compared to Q1 which took 40 days. Four-bedroom properties took 21 days to let in Q2 compared to Q1 which took 48 days on average, highlighting the huge demand that remains for larger properties in Edinburgh.
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The rental market in Glasgow
Average rents in Glasgow
According to Citylets data, the average rent for properties in Glasgow has increased slightly over the last quarter, rising by 3.7% annually, to a new average rental rate of £1,183 per calendar month.
One-bedroom properties appeared to be in the highest demand in Glasgow, perhaps due to the prevalence of young professionals working in the city. Average rents for this property type increased 6.1% year-on-year to a rate of £882. In terms of long-term change, four-bedroom properties in Glasgow have experienced a significant growth of 106.4% over the past decade; truly a sign of how significantly the rental market in Glasgow has developed in recent years, and how strong the investment potential has been for landlords choosing to develop a property portfolio in the city.
Time to let in Glasgow
Looking at the Citylets data, we can see that the average time for a property to let in Glasgow was 26 days, eight days slower than the same period in 2023. 22% of properties for rent in the city let within a week, while 68% were let within the month.
As seen in Q1 of 2024, one-bedroom properties in Glasgow once again let the quickest - in 22 days - with four-bedroom properties close behind at 23 days. 25% of one-bedroom properties let within one week, while 77% of four-bedroom properties let within one month.
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The rental market in West Lothian
Average rents in West Lothian
The average rental rate for properties in West Lothian was £969 during Q2 2024, according to the Citylets data, indicating a rise of 11.3% annually. The highest rent rate increase in the region was for one-bedroom properties, which rose 15.2% to an average rent of £690.
Time to let in West Lothian
Properties in West Lothian let in an average time of 16 days, which was three days quicker than the same period in 2023. 26% of all available West Lothian rental properties were let within a week, and 90% were let within a month. West Lothian's one-bedroom properties showed very impressive results in terms of time to let, with 36% let within a week of being advertised, and 100% let within a month.
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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.