Central Belt Drives Scottish PRS Engine | Issue 39
- Edinburgh rents surpass the £1000 average mark
- Growth in Glasgow accelerates to 7.2%
- Aberdeen negative growth eases to minus 16.7%
- National average continues steady climb at 2.4%
Scottish Monthly Rent Analysis Q3 2015-Q3 2016
Strong gains in Scotland's central belt continue to drive the national average upwards, albeit tempered by flat to negative growth elsewhere. Edinburgh, Glasgow and West Lothian in particular recorded annual rises of 7.6%, 7.2% and 5% respectively as at Q3 2016.
Indeed, the latest Scottish Household Survey (2015) confirms the continued growth of the Scottish PRS which now represents 14% of all households at 350 000, up threefold since the survey's inception in 1999.
Private rented accommodation is now the 2nd largest tenure behind owner occupied but ahead of local authority (320 000) and Housing Association (240 000). Cumulatively, social rent accounts for 23% of Households, down from 32% in 1999.
A notable 41% of 16-34 year olds now rent privately and is the dominant tenure for that age demographic overtaking owner occupation in 2012 and, on current evidence, on course to reach 50% by 2020.
Meanwhile, rents in the Scottish PRS continue to climb. The national average now stands at £775, again up just over 2% on the year (2.4%), the long standing rate of growth for the sector. 61% of all properties let within a month and with an average TTL of 30 days.
Scotland
Average Rent (pcm) by Number of Bedrooms
Average Time To Let (TTL) by Number of Bedrooms
Citylets Rental Index - Scotland
| Year | Q1 | Q2 | Q3 | Q4 |
| 2008 |
100.0 |
101.6 |
102.8 |
100.2 |
| 2009 |
98.8 |
98.1 |
99.2 |
97.7 |
| 2010 |
98.9 |
101.4 |
100.6 |
99.8 |
| 2011 |
100.3 |
102.8 |
103.9 |
101.7 |
| 2012 |
102.9 |
104.2 |
105.0 |
104.0 |
| 2013 |
104.7 |
107.4 |
106.5 |
105.1 |
| 2014 |
108.4 |
112.1 |
114.1 |
113.5 |
| 2015 |
116.4 |
118.1 |
117.4 |
115.7 |
| 2016 |
118.9 |
120.5 |
120.2 |
|
Ian Lawson - Braemore
“Investor activity and confidence in Scotland's property market remains high as we enter Q4. The combination of high rental values, prospects for rental income growth, in addition to capital appreciation further fuelled by the significant housing shortage, makes a compelling argument for investors to remain in the Buy to Let arena. Any post-Brexit temptation amongst landlords to exit the property market would be entirely misplaced, with the Scottish cities demonstrating sound resilience and growth, market indicators on rents and sales showing huge promise for the period ahead.”
