Glasgow to overtake Aberdeen
Rent rises boost demand for more rental properties
Scotland’s private rented sector (PRS) experienced a slight uptick in the first quarter, fuelled by growth in the central belt and growing stability in the Aberdeen market.
Property rental site Citylets Scotland said Glasgow’s rent level is likely to overtake the oil capital.
The company said growth in rentals was further evidence of the need to build more rented property to meet demand.
Highlights of Q1 report:
- Scottish average in private rented sector at £768 at end of Q1 2017
- Aberdeen falls to national average for first time since records began
- Glasgow set to overtake Aberdeen for first time in Q2
- Edinburgh breaks back through £1000 level to reach highest ever level of £1023
- Dundee at £610 per month, West Lothian at £656 average
Thomas Ashdown, managing director and founder of Citylets, said: “The Q1 numbers are noteworthy on a number of levels including Aberdeen now seemingly finding its new level and likely to level off by the end of the year.
“Glasgow, historically a social rent city, looks set to overtake the UK’s oil and gas capital in Q2 – something nobody would have predicted just three years ago – and Edinburgh reached its highest ever level.”
He said strong growth has returned to the central belt at circa 5%, which is slightly down on the longer term trend of 6% and possibly represents a new norm for the major cities in the region.
“The findings also represent further evidence of the pressing need for build to rent and other related initiatives to be rolled out to increase supply for the benefit of the Scottish housing market,” he said.
Founded in 1999, Citylets has up to four million visitors a year (from 1.4 million unique visitors) and more than 400 agent offices advertising over 50,000 properties per year.