Page 23 - Property market report_Sept24-Feb25

Scottish Rental Market

In Q4 2024, the Scottish private rental market mostly followed seasonal trends, marking
a return to pre-COVID norms. However, political developments around housing policy
took centre stage.

The Housing (Scotland) Bill passed its first stage in decrease of 0.1%, and largely represents some
parliament, introducing plans to cap rent increases much-needed stability in the market.
between tenancies to the Consumer Price Index
(CPI) plus 1% in designated Rent Controlled Areas This decrease in rental rates was exclusive to
(RCAs). This policy was polarising: some investors three-bedroom and four-bedroom properties in
appreciated the stability, but critics argued it either the capital, both falling 2.4% compared to Q4 of
went too far or not far enough. 2023. The biggest increase came in two-bedroom
properties, albeit just 2.2%, which resulted in an
Amid Scotland’s housing emergency and an average rental cost of £1,444. Rental rates on one-
urgent demand for more landlords to enter the bedroom properties in the capital saw a small
The average market, the Scottish Government’s decision to increase also, up 1.9% to an average of £1,072.
rent in Edinburgh was increase Additional Dwelling Supplement (ADS)
£1,501, from 6% to 8% came as a disappointment to Time to let in Edinburgh

a marginal decrease many in the sector.
of 0.1% In encouraging news for tenants, properties in
Edinburgh let in an average of 22 days, which is 4
Across Scotland, as seen in Q1, Q2 and Q3 of
days slower than 2023.
2024, one-bedroom properties experienced the
highest increase in rates, rising 7.5% year-on-
In keeping with the trend seen for the entire year,
year, meaning the average rent per calendar
one-bedroom properties in Edinburgh once again
month for this property type rose to £856. In the
performed well in Q4, taking only 16 days on
last five years, three-bedroom properties have
average to let. 25% of one-bedroom properties
achieved the biggest increases in rental rates,
two- rising 52.9% overall with a current average rental were let within a week, and 86% were filled within

The average bedroom rate of £1,440 per month. one month.
time to let in properties experienced the
Edinburgh was biggest increase in rental Average rents in Edinburgh There was a noticeable shift in the average time to
22 days yields, rising 2.2% let both 2-bedroom and 4-bedroom properties in
year-on-year The average rent in the capital remained the capital compared to Q3. 2-bedroom properties
consistent when comparing the final quarter took just 18 days to let in Q3, while in Q4 in took
of 2024 with the previous year. The average 23 days. For 4-bedroom homes, Q4 was 10 days
cost of renting a home in Edinburgh was £1,501 slower than Q3, with average time to let at 40 days
per calendar month, which is a very marginal and 30 days respectively.

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