Scottish rent rises are slowing down

Rent price growth in Scotland’s private rented sector (PRS) has started to ease, reaching its lowest level since November 2022, research reveals.

According to DJ Alexander Ltd, the Scotland’s largest lettings and estate agency, the average annual rent rise dropped to 5.1% in April 2025 – that’s 2.3% below the UK average.

Regional differences highlight the situation with renters in Dumfries and Galloway seeing the steepest rise at 10%.

Close behind is Fife at 8% and the Scottish Borders at 7.9%, all above the UK average.

In contrast, Greater Glasgow recorded the smallest rise at 3.3%, with Perth and Kinross at 3.6% and Highland at 4.7%.

Tight property supply

Scottish rents have remained stable in recent years, staying below 3% from January 2016 to December 2021.

However, a steady climb began, and they peaked at 11.7% in August 2023.

Since then, the rate of the increases has consistently dropped off, falling below the UK average since June 2024.

David Alexander, the firm’s chief executive officer, attributed the recent rent rises to a tighter supply of rental properties.

He said: “These figures show that the PRS in Scotland has historically had steady annual increases.

“The rise in average rents has only really occurred in the last five years due to a number of factors but a shortage of supply is clearly a major element in this.”

Landlords show rent restraint

Mr Alexander praised the restraint shown by landlords and said: “That the average rent rise is lower – and has been below the rest of the UK for almost a year – indicates the fairness of property investors and landlords in setting a reasonable rent for their tenants.”

However, he emphasised the importance of maintaining a robust supply of rental properties to stabilise prices.

Mr Alexander said: “Clearly maintaining a strong supply of properties is key to stabilising prices in the PRS and anything which threatens to subvert this will not be welcomed by landlords or tenants.”

PRS needs support

He went on to say that Scotland’s PRS remains a lively and essential market, driven by demand that outstrips available properties.

Mr Alexander says there’s a need for consistent rent growth rather than erratic fluctuations.

He explained: “What this should create is a market that shows steady annual rises without the unpredictability of large increases one year followed by dips the next.

“Steady increases are always preferable to a rollercoaster ride of price rises and falls.”

He adds that the PRS needs to be supported so landlords can make a profit, and tenants enjoy a fair market rent.