Private rents ‘falling in real terms’ across Scotland
Rents adjusted for inflation have fallen in the majority of Scottish towns and cities since the onset of the credit crunch in 2008, according to new figures from lettings portal Citylets.
Of all towns analysed, only the Fife town of Kirkcaldy saw rents for 1 and 2 beds almost keep up with inflation, ending at 2.1 per cent and 3.8 per cent below CPI over the term.
Even key cities such as Edinburgh and Glasgow saw rents fall for 1 bed properties in real terms down 0.9 per cent and 10.4 per cent respectively. In Aberdeen, both 2 & 3 beds underperformed inflation with 1 beds expected to follow shortly by the end of the year. Real rents in Dundee are down across the board.
Where rents have risen, Citylets found that for the key 2 bed markets in Edinburgh and Glasgow, the rises ranged from just 1.45 per cent to 3.8 per cent.
Commenting on the findings, Citylets founder Thomas Ashdown said: “I think these figures conclusively confirm what the Scottish Government has already noted, that rents are not out of control in this country. They are, on the whole, falling in real terms and it is simply not credible for any party to contend otherwise- that time has surely passed.
“As far as we can see, it is only the 2 bed markets in Edinburgh and Glasgow that have risen above inflation over the last 8 years with just 3 postcodes recording double digit growth- EH1, EH9 and G12. I wonder what difference some large scale, purpose built residential developments would make in these areas.”