Scotland sees rent rises fall to three-year low

Average residential rents in Scotland have climbed 0.6 per cent in the twelve months to April 2016, in the slowest annual rise witnessed since March 2013. This marks a significant downturn in rates of year-on-year growth from 1.1 per cent recorded in March, and 2.1 per cent in February.

In absolute terms, this £3 annual increase means that the average rent in Scotland now stands at £542 per month. This is the lowest Scottish rents have been since they stood at £539 in April 2015.

On a monthly basis, typical Scottish rents have fallen for the second consecutive month, down 0.4 per cent since March. This is at odds with the trend seen south of the border, with average rents across England & Wales rising 0.3 per cent month-on-month in April.

Despite the wider slowdown across the country, Your Move said the annual rent rises in Edinburgh and the Lothians “continue to accelerate”, reaching a peak pace of 10.5 per cent last month.

The jump has taken average monthly rents in the region to a record high of £651, up a considerable £62 from a year ago, the report found.

Brian Moran, lettings director at Your Move Scotland, said: “Tenants looking to rent a property now may find themselves able to bag a bargain, after a slight spring slump in rent growth. Rents haven’t risen at such a leisurely place for three years. However, this year-on-year snapshot hides the many price fluctuations we’ve seen in between this April and last, and also isn’t uniform across the country. The lettings market is always at the mercy of local supply and demand, and in Edinburgh and the surrounding areas we’re seeing extraordinarily fast rent rises, as tenant competition shines brightest around the glow of the jobs market.

“Supply and demand need to strike a lasting equilibrium to prevent rent growth taking off and leaving tenants by the wayside – and that’s a tall order in today’s regulatory environment. Landlords are up against a considerable cocktail of hurdles, including a higher rate of stamp duty on property purchases, reductions in tax relief, and the Private Tenancies Bill. While levied at landlords, these measures could soon hurt thousands of tenants too, if buy-to-let investment retreats as a result and there are less houses and flats to rent.”