Rents rising as exiting landlords squeeze supply
Residential rents are continuing to rise as the shortage of property is made more acute by landlords pulling out of the market.
The latest quarterly report from lettings agency Citylets shows rents in Scotland’s big cities have increased significantly and hit a new record average of £1,214 per month in the capital.
Nationally the average monthly rent in Scotland is up 8.5% year on year (YOY) to £896, with the average time to let (TTL) for properties standing at just 20 days. More than a third of all properties (35%) were let within a week, while 77% were let within a month.
In Edinburgh average property rents rose more than 14% YOY, while Glasgow recorded a 16% annual increase in average monthly rents, to £972.
Thomas Ashdown, managing director of Citylets said: “Letting agents remain concerned about the supply of available properties in the private rental sector, with many landlords continuing to sell up while the market is buoyant – or to avoid the threat of increased regulation and the costs that will bring.
Mr Ashdown added: “It’s reassuring to see that cities are coming back to life, however rent rises of this order are likely to prove problematic for many, given the ongoing cost of living crisis. This is not a discretionary purchase – you have got to have somewhere to call home. More choice in the sector and indeed more widely in housing would, of course, help.”
Karen Turner of Rettie & Co, said: “With the notice periods reverting back to pre-Covid, there are some landlords who are now looking to sell and exit the market, which will only add to the supply/demand challenges we are facing.
“We should be encouraging more landlords to enter the sector to meet this demand, not discouraging them.”
Charlie Inness, of Edinburgh letting agent Glenham Property, said: “We do not expect the shortage of supply to change as investors are either exiting the market or are cautious of entering due to the uncertainty created by the Scottish Government’s proposals for increasing regulation and artificial control of the sector.”
Chris Minchin, of Winchesters Lettings in Aberdeen also commented on the worrying stock levels and added: “Aberdeen remains significantly under-provisioned for three bedroom+ houses for families in most areas of the city and outlying areas, with prices here increasing significantly.”