What was the Scottish rental market like in Q3 2023?

The latest Citylets report examines the third quarter of 2023 (July to September), and reports that this time has been as frenetic for the private rental sector as had been expected, with double-digit rent rises in most of Scotland’s major cities and regions, despite large swathes of the market affected by the Scottish Government’s rental caps.

There were also continuing issues with supply versus demand, which in turn affects the rental rates and time to let figures, as tenants compete to secure a home across the country.

The average rental rate for Scotland’s private rental sector rose by 13.7% annually, pushing rents to £1,115 per calendar month on average. Across Scotland, two-bedroom properties experienced the largest increase in rates, rising 15.1% to an average of £1,053.

Looking at individual regions, some areas saw rents rise to all-time highs, demonstrating how demanding the rental market continues to be nationwide. Indeed, Scottish rental rates have grown 41.3% in the last five years, showing how lucrative an investment buy-to-let can be for landlords looking at the longer term.

In Edinburgh, rental rates jumped 16.5% year-on-year to £1,546 on average, while in Glasgow, a 15.6% increase meant the average rent there reached £1,208 per calendar month.

Stock levels remained constrained across the board, marginally up on the same period last year, while the pace of the market remained steady throughout this quarter. The average time to let across Scotland was 20 days, although one-bedroom properties let the fastest, in just 16 days. 35% of properties were let within a week of being advertised.

The rental market in Edinburgh

Average rents in Edinburgh

Renting in the Scottish capital remained a competitive business, with private rental rates soaring 16.5% annually to a new high of £1,546 per calendar month.

Two-bedroom properties in Edinburgh saw the highest rise in rental rates, jumping 18.4% to £1,451, aligning with the trend seen across Scotland for two-bedroom homes.

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 88.5% for Edinburgh properties over the last 10 years, demonstrating how strong an investment this can be for those willing to be patient.

Time to let in Edinburgh

44% of Edinburgh properties were let within one week of being advertised, while 88% were off the market within one month. The average time to let was 14 days, one day faster than the same time last year.

One-bedroom properties were snapped up the fastest, taking just ten days to be let. 51% of one-bedroom properties in Edinburgh were let within a week, and 94% within one month.

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The Glasgow rental market

Average rents in Glasgow

According to the Citylets data, Scotland’s second city also experienced another boost in its private rental sector during the third quarter of 2023. Rental rates rose 15.6% year-on-year, taking the new average to £1,208 per calendar month. This means that rental rates in Glasgow have risen 53.9% in the last five years alone, showing how incredibly strong demand has grown to live in this vibrant city.

Four-bedroom properties in Glasgow experienced a particular boost, with a rise of 26.9% meaning rental rates for this property type were £2,659 on average. This is a pattern regularly seen in Glasgow, perhaps due to the popularity of the student market in the city and the prevalence of students searching for a larger house-share.

Time to let in Glasgow

The average time to let in Glasgow was 16 days, three days slower year-on-year. However, one-bedroom properties let within just 13 days, demonstrating high levels of demand from young professionals in the city.

42% of Glasgow properties were let within one week, while 83% were snapped up within the month. 49% of one-bedroom homes were let within one week, showing how competitive the market was for this property type.

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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 £922 during the third quarter of 2023, according to the Citylets data. This is an annual increase of 8.3%.

Two-bedroom properties in West Lothian, in line with the trend seen across Scotland, were the most in-demand, with rental rates rising 12.7%, pushing the average rent to £805 per calendar month.

Time to let in West Lothian

West Lothian properties were let within 15 days on average, while again, one-bedroom properties were snapped up the fastest, taking just 13 days (one day quicker than the same time last year).

35% of available homes to rent in West Lothian were let within one week, while 45% of one-bed properties were let within this time frame.

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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.