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EXPERT ADVICE

What was the Scottish rental market like

in Q4 of 2024?

ESPC’s Head of Lettings, Nicky Lloyd, looks at how the Scottish rental
market evolved in the last three months of the year, using data from the
latest Citylets report.

uring the final quarter of 2024, the Alongside this, the Scottish Government
private rental market mostly followed announced in their Budget a decision to
Dseasonal trends we’d expect to see, increase the Additional Dwelling Supplement
marking a return to pre-pandemic norms. from 6% to 8% with almost immediate effect,
However, there were some major political which came as a disappointment to many. Credit: ShutterStock Kubilay/Shutterstock.com
developments around housing policy which We believe this will perpetuate the cycle of
made all the difference. limited supply in the private rental market,
exacerbating the overall property shortage while two-bedroom properties reported the properties have seen a 46.3% increase in
The Housing (Scotland) Bill passed its first that’s already a key driver of Scotland’s biggest increase, with a 2.2% rise taking the average rental rates over the last five years,
stage in Parliament, introducing plans to cap housing emergency. average to £1,444. The average cost of a one- while one-bedroom properties report a
rent increases between tenancies in designated bedroom property also rose 1.9%, with an staggering 75.4% increase compared to ten
Rent Controlled Areas. This is a polarising Finally, the Scottish Household Survey was average monthly rent of £1,072. years ago, as the city has grown in popularity
policy for investors, and we’ll need to wait and published, which unsurprisingly highlighted with families and young professionals alike.
see how things progress. Landlords across a decline in the number of households in the Edinburgh’s properties took four days longer
the sector have already expressed concerns private rental sector, with the figures falling by to let compared to Q4 2023, with an average Glasgow’s average time to let also slowed,
that rent caps will disincentivise upgrading 30,000 between 2017 and 2023. speed of 22 days, in welcome news for with a five-day difference meaning properties
properties, especially when the incoming tenants. Once again, one-bedroom properties let in 23 days on average during Q4. As with
regulations around energy efficiency standards During Q4, Scotland’s average rental rate let the fastest, in just 16 days. Edinburgh, one-bedroom properties let the
already require significant investments. continued to rise year-on-year, with one-bed fastest, in 18 days.
properties experiencing the highest rise of Glasgow’s rental market
7.5% annually (£856pcm). In the last five years, Glasgow’s average rental rate saw a slight West Lothian’s rental market
three-bedroom properties have achieved the annual decline during Q4 2024, falling 1.9% The average rental rate for West Lothian
highest increases, with average rental rates to £1,157pcm. Two- and three-bedroom saw a 1.7% growth annually, to £938pcm.
rising 52.9% overall, reaching a current rate of properties especially saw notable declines of Two-bedroom properties saw the largest
£1,440pcm.
3% and 3.1% respectively, but four-bedroom increase, rising 3.3% to an average of £855.
properties reported a small increase of
Edinburgh’s rental market 0.4%, meaning their average rental rate sat Aligning with other regions, properties in
Edinburgh’s average rental rate of at £1,968. West Lothian took longer to let during
£1,501pcm remained consistent year- this period, with the average rental rate
on-year, with a marginal 0.1% decrease The opportunity for long-term investment slowing by four days annually to 21 days.
representing some much-needed in Glasgow is clear to see when looking Two-bedroom flats experienced the highest
stability in the market. at these latest figures; three-bedroom demand in the area, letting in only 15 days.

Three- and four-bedroom properties
both experienced a decline of 2.4% ESPC Lettings is an Edinburgh letting agent. We can help with marketing your rental property and finding the right tenants.
year-on-year in average rental rates, Contact the team on 0131 253 2847 or landlord@espc.com.

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