Scotland’s annual rent growth falls to 1%

Rent growth in Scotland has slowed to its lowest annual rate for a decade, with the average monthly cost rising by £10.

The increase came in well below inflation, though tenants in several areas still faced rises of nearly 5%.

The average private rent reached £1,009 a month in May, up 1% from June 2025, according to an analysis by lettings firm DJ Alexander.

It said the annual increase was more than 10 percentage points below the 11.7% peak recorded in August 2023, when rent controls were in force.

The wider inflation rate over the latest period was 2.91%.

Scottish market resolves itself

The firm’s chief executive, David Alexander, said: “These figures continue the trend which began last year and highlights the stabilisation of the private rented sector in Scotland which is now producing rent rises broadly around the inflation level.

“Without the distorting impact of rent controls, the market has sorted itself out and is producing rent increases in line with supply and demand.”

He added: “Over the last year more homes have become available which has reduced rent inflation resulting in an annual rate more in line with the historic trend rather than the blip caused by the introduction of rent controls in September 2022.

“These figures are positive for both landlords and tenants as they show the market in equilibrium operating as it should with prices rising to meet demand and falling back when supply exceeds that.”

Rent inflation falls

Since the rent controls ended on 31 March 2025, annual Scottish rent inflation has fallen from 5.7% to 1%.

Average monthly rents increased by £37, or 4.7%, to £836 in Wales, while England recorded a £48 rise to £1,442, an increase of 3.4%.

Fourteen of Scotland’s 18 broad rent areas recorded a slowdown in annual growth, although costs and increases differed substantially across the country.

Lothian remained the most expensive area, with the average rent reaching £1,425 following a 1.3% annual rise.

Greater Glasgow recorded an average of £1,272, up 3.3%, while East Dunbartonshire rents increased by 4.6% to £1,163.

Rents in Dumfries and Galloway rose by 4.8% to £551, while the Ayrshires also recorded a 4.8% increase, taking the average to £655.

Dundee and Angus was one of the areas to record a fall, with average rents down 1.3% to £828.

Aberdeen and Shires saw a 1.3% increase to £854.