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A new era for the rental sector has been confirmed with a sharp rise in rental prices across Scotland, particularly in Edinburgh and Aberdeen.
Property experts who have carefully tracked the state of the Scottish rental market for more than five years believe the rise could be as a result of significant changes imposed on the sector during 2012.
Figures from the firm’s respected quarterly report show the average price of renting in Scotland has risen to £671, an increase of 2.3%.
Dan Cookson, Senior Analyst at Citylets, believes the rise could be partly as a result of the abolishment of tenant fees and other important changes made during 2012. While many property commentators have predicted the changes would have an inflationary impact, the Citylets report seems to provide concrete evidence.
Mr Cookson added: “Our report for the last quarter of 2012 is significant in that it is the first to cover a period after the changes in the sector in 2012 took hold.”
“Two cities which have seen some of the biggest rises in rents -Edinburgh (up 5.1%) and Aberdeen (up 6.3%) – these annual increases are the largest experienced in either city during the last 5 years.”
“There is certainly a suspicion that the recent banning of agent fees to tenants has had an upward impact on rents. Several agent clients have suggested this to be the case and our data seems to support this view.
Alistair J McMurdo, Director of Castlebrae Sales and Letting, said: “Given the recent change in legislation relating to the charging of tenant fees, many landlords are trying not to increase rents.
“However, we are finding that due to the increased costs being passed to landlords, rent rises are inevitable.”
The Citylets report reveals that Aberdeenis the most expensive place to rent in the country with the average rent in theGranite Citycoming in at £950.
Two and three bed properties saw the biggest rise with two beds rising 5.0% on last year to £884 and three beds rising to £1305, an increase of 8.8%.
Time to let (TTL) figures for Aberdeen shortened by six days and are now the lowest in the country with an average property taking 18 days to rent compared to 24 days in the same period in 2011.
Meanwhile in Edinburgh prices rose considerably with the average mix adjusted rent coming in at £819.
Two and three bed properties in the capital saw increase in rents with two bed properties now standing at £744, a 4.6% rise on last year. Three bed properties increased by 4.6% to bring rents to an average of £1072.
Times to let figures were also shorter in Edinburgh with the average property taking 26 days to let, an improvement of five days from last year.
Dan continued: “Although Glasgow rents remained comparatively more affordable, it also experienced an increase in rents.”
Glasgow’s average mix adjusted rent increased by 2.2% and now stands at £612.
Two bed properties increased by 3.1% to £630, three bed properties in Glasgow increased by 0.2%. Time to let figures lengthened slightly with the average property now taking 37 days to let compared to 35 days last year.
Citylets’ rental report was launched in 2007 and has since become a respected guide for housing professionals including social housing and public policy makers. The report and associated rental maps will soon be available for download here: www.citylets.co.uk/reports
Landlords and Letting Agents in Scotland might wish to consider joing the Scottish Association of Landlords to stay informed and share their woes, particularly in light of recent events. For further details please complete the form below.
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