The cost of renting a home in Scotland continued to rise during the final quarter of 2019, new figures show.
The Scottish national average increased to £798 per calendar month, up 3.5% year-on-year, with the average property taking 29 days to let, according to the latest Citylets Report for Q4 2019.
The strong annual national rise in recent quarters seems materially driven by an increasingly buoyant west coast market as much as the long-running strength of the capital.
Gillian Semmler, communications manager at Citylets, commented: “The Scottish PRS seems very resilient in the face of ongoing political upheaval as was the case throughout much of last year culminating in a general election in Q4.
“It was very much business as usual in the large urban areas and, if anything, the market accelerated in the final quarter of the year with rising rents and a falling time to let.”
Property to rent in Edinburgh is still rising, however the rate of annual growth has remained relatively subdued at 3.6% YOY, the same as the previous quarter.
The market, on the whole, moved very quickly in Q4 with an average TTL of just 22 days. One-bed properties, in particular, were snapped up quickly by prospective tenants at just 17 days on average TTL. 83% of One-bed properties and nearly three-quarters of all properties (74%) let within a month. The average annual growth for the Edinburgh rental market has been just over 5% from both the five- and 10-year perspective.
For the second time in 2019, growth in Scotland’s largest city outstripped the capital at 4% YOY. The market also moved at a greater pace than Edinburgh with an average TTL of just 20 days, five less than the same period last year. One-bedroom properties took just 15 days on average to find a tenant and 85% let within one month. Overall, 78% of Glasgow rentals let within a month.
The average property to rent in Glasgow now stands at £802 per month and is expected to remain above the £800 mark throughout 2020. Rental growth in Glasgow is almost exactly 4% from the one, five and 10-year view.
After posting larger than expected negative growth last quarter, rents in Aberdeen returned to recent trend posting modest negative annual growth of 1% YOY. The average property to lease in Aberdeen now stands at £708 per month. Landlords and leasing agents in Aberdeen may be encouraged that 47% of one-bedroom properties let within a month as did 36% of the market as a whole.
Dundee continued its upward trajectory with rents rising 1.4% YOY to stand at £586 a month and taking 27 days to let. For the second year running, TTL in Q4 was much reduced compared to other quarters where the usual range has been 40-50 days. Rental growth for one-beds was a marked 6.4%, though the three and five-year average is a more sanguine circa 3%.
South Lanarkshire continues to post consistently strong growth at 5.9% this quarter. The average property to rent in this large County is now £611 per month. The market also moves apace, with TTL reduced by five days to 28 on average, a speed more often characteristic of Scotland’s major cities. Annual rental growth, however, from both the five and 10-year view is somewhat less at 3.5% and 0.9% respectively.