Page 23 - Property market report-Mar-Aug24

Scottish Rental Market During Q2 there were some significant shifts in political influence on the rental sector, while

the 1st of April saw the launch of the new Housing Bill that changed rental legislation. The
property rental market across Scotland has begun to resemble the pre-pandemic period,
with figures strong as we head into the traditionally busiest time of the year. Tenants will
be pleased to hear that rents are no longer increasing at sharp annual rates, but it’s still
uncertain whether growth will align with inflation in the future.

Rents throughout Scotland continued to As seen across Scotland, one-bedroom properties
rise in double digits; Q2 saw an annual in the capital experienced the biggest increase
increase of 11.7% and a current average rent in rental yields, rising 8.1% year-on-year to a new
of £1207. Despite this, Glasgow saw a single- average of £1,080. This trend continues to hint at
digit increase of only 3.7% while the rent in demand from young professionals, and highlights
Edinburgh also increased by a single-digit at a the stark comparison between tenants living in
rate of 6.6%. Edinburgh versus elsewhere in Scotland, as the
average rental cost for a one-bed property in the
Across Scotland, one-bedroom properties capital is close to the Scottish national average
experienced the highest increase in rates, rental cost of a three-bedroom property.
rising 14.3% year-on-year, meaning the
With an annual increase of 7.4% to a rental rate
average rent for this property type rose to
of £2,058, three-bedroom properties were the
£841. In the last five years, three-bedroom
second highest increase in the capital, hinting at
properties have achieved the biggest increases
pressure from longer-term, family tenants in the
in rental rates, rising 51% overall with a current
market alongside student lets.
average rental rate of £1,628 per month.
Time to let in Edinburgh
With properties taking an average of 24 days
The average rent in Properties in Edinburgh let in 22 days on average,
Edinburgh was to let, the average time to let increased slightly 8 days slower than the previous year, allowing
£1,574 compared to the first quarter of 2024 but was tenants more time to secure their next property.
five days slower based on year-on-year data.
an increase of 6.6%
Overall, 24% of properties let within a week,
As seen in Q1, one-bedroom properties in
and 71% within one month of appearing on
Edinburgh once again performed strongest, taking
the market. One-bedroom properties were in
just 17 days on average to let. 33% of one-beds
the highest demand, letting in only 20 days on
were let within one week of being advertised, while
average; 28% of these properties let within a
82% found new tenants within one month of first
week, and 77% within a month.
appearing on the market.
Average rents in Edinburgh The time taken to let three- and four- bedroom
The average
time to let in The average rental rate in Edinburgh properties improved significantly during the period
Edinburgh was one-bedroom continued a steady single-digit growth trend, compared to Q1, with three-bedroom properties
22 days properties experienced the after double-digit rates increases seen in taking 29 days to let in Q2 compared to Q1 which

biggest increase in rental previous years. The average cost of renting a took 40 days. Four-bedroom properties took 21
yields, rising 8.1% property in the capital was £1,574 per calendar days to let in Q2 compared to Q1 which took 48
year-on-year month, which is an increase of 6.6% compared days on average, highlighting the huge demand
to the same period of 2023. that remains for larger properties in Edinburgh.

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