Page 23 - ESPC Property Market Report - Mar-Aug 2023

SCOTTISH RENTAL MARKET

According to the latest Citylets report on the Scottish rental market, the final quarter
of 2023 (October-December 2023), was one which explained that after many months
of high-octane demand and rate rises, the rental market finally saw a return to some
recognisable seasonality during these traditionally quieter months.

The average rent in
Edinburgh was
£1,503 Rents across Scotland continued to rise, but at One-bedroom properties attained the largest
a slower pace than has been seen recently, with increase in rents, with the average rate seeing
during October-December the rate of growth easing considerably in many an increase of 14% year-on-year, to £1,052 per
2023
locations across the country. Scotland-wide, calendar month, hinting at a rise in demand from
rental rates rose in double digits, at 12.9%, but in young professionals. This means that the average
the cities of Edinburgh and Glasgow, increases cost to rent a one-bed property in Edinburgh is
were notably in the single digits. Scotland’s very close to the Scottish national average rent
average rent sat at £1,097, with two-bedroom for a two-bed property, highlighting the level of
The average properties seeing the largest increase in rates, additional financial pressure for tenants living in
time to let in with a 14.1% annual rise meaning the average the Capital versus other areas in Scotland.
Edinburgh was cost for this property type was £1,054 per
18 days calendar month. The slowing of rental rates This was closely followed by two-bedroom

was most notable in larger, more expensive properties, which saw a jump of 10.5% in rental
properties, with four-bedroom homes seeing the rates meaning the new average was £1,413.
most pronounced drop.
For the first time in an extended period, the
Another clear sign that the market may be average rental rates of four-bedroom properties
The highest at the beginning of a return to pre-pandemic decreased during this period, declining 3.6%
rental yield was norms is that the slowing of the average time to £2,496.
EH15 to let. Across Scotland, this was four days

(1 bed) slower than last year, with the larger cities Time to let in Edinburgh
seeing properties move slightly slower than the
Properties in Edinburgh took 18 days to let, four
average, taking six days longer to let than they
days longer than the previous year. One-bedroom
did in Q4 2022. However, overall, the market still
properties performed best, taking just 13 days on
moved at a brisk pace, with tenants required to
average to let (although this is three days slower
act quickly in order to secure a property.
year-on-year).
Average rents in Edinburgh
30% of properties were let within one week, and
Renting in the Scottish capital remained 81% were let within a month of appearing on the
competitive during the last quarter of 2023 for market, which, while impressive, is a contrast to
many property types, with the average private the figures seen even in the report for the third
rental rate rising 9.7% to £1,503 – although quarter of 2023, showing how much the market
overall, the increases reported are smaller than has slowed towards the very end of 2023.
in previous months.

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