Average Scots rents hit all-time high

The report by one of Scotland’s largest lettings agent networks said the average Scottish rent reached an all-time high of £544 in May 2015, an increase of 1 per cent on the previous month.

Scottish rents rose by an average of 0.1 per cent per month over the prior six months.

Average residential rents in Scotland have now risen 2.7 per cent — equivalent to £14 — in the past year, which is the fastest annual increase in rental prices for nine months.

Brian Moran, lettings director at Your Move Scotland, said: “The Scottish rental market has finally shed its winter coat, and is starting to emerge brighter-eyed and bushy-tailed for the summer months. Growth has more than doubled since March, when annual rent rises were only 1.3%.

“To put this into context, we’ve just turned a full circle. After a downtrend in rent growth over the winter months, we’re now back on par with the rate of rises a year ago. In fact, at the same time last year, rents were rising at a moderately faster pace, with 2.8% annual growth in May 2014.

“Affordability is one of the main handicaps reining back private sector rents from rising even faster, but with recent boosts to wage growth, most household incomes are weighing in higher, and tenants can finally afford to pay more. However, this needs to go hand-in-hand with supply. With a strong economy and sturdy jobs market, demand for homes to let is standing tall. The stock of available housing needs to rise to match this level to maintain the delicate balance with rent rises, and tenant incomes.”