No need for rent cap as Scottish rents rise slower than incomes – call

Rents in Scotland have risen at a gentler pace compared to residents’ earnings which shows there’s no need for the rent controls, one firm says.

DJ Alexander Ltd has analysed data from Zoopla’s latest UK Market Rental report and found that rents rose 3.1% in the 12 months to January.

Average salaries surged ahead by 4.8% which, the firm says, underscores a trend of improving affordability for tenants in Scotland.

Zoopla noted that rent demand is falling across the UK with immigration falling for study and work, while first-time buyer demand has risen.

Available rental properties

Alongside this shift, Scotland has seen a boost in available rental properties, with a 29% rise in supply – the largest jump anywhere in the UK.

However, regional differences persist as Edinburgh saw rents edge up by 3.0%, Aberdeen by 1.8% and Glasgow by a modest 1.3%.

David Alexander, the chief executive of DJ Alexander, points to the growing number of homes on offer as proof that a free market can naturally adjust to deliver fairer pricing.

Historically, Scotland’s private rented sector has maintained steady annual growth, and these statistics suggest a return to that pattern.

Demand exceeds supply

However, there are challenges in Scotland as demand continues to exceed supply, with 12 applicants vying for each rental home.

Although this figure is down 42% from the peak between 2022 and 2024, it remains above pre-pandemic levels.

Mr Alexander said: “While this data shows that rental inflation has stabilised, it is clear that demand still outstrips supply.”

The figures suggest, he adds, that while conditions are easing for renters, there will be no quick return to a pre-2022 recovery.

Remove plan for rent controls

Mr Alexander sent this appeal to the Scottish government: “The argument provided for rent controls is that rents are increasing beyond affordability but clearly these figures demonstrate the opposite.

“With average rents across Scotland increasing by 3.1% at a time when incomes have risen by 4.8% it is clear that affordability is improving.”

He added: “I would urge the Scottish Housing Minister to remove the current plans contained within the Scotland Housing Bill to introduce rent controls as it is clear they have been the cause for rapidly rising rents in the last two years.

“It is only by allowing market forces to return that we will have a rental market with a more stable and sustainable growth.”