Page 22 - ESPC Property Market Report - Mar-Aug 2023

SCOTTISH RENTAL MARKET

According to the latest Citylets report on the Scottish rental market, the second quarter
of 2023 (April-June 2023) was one which saw demand outstrip supply once more, and
rental rates rise by double digits across the board, despite the introduction of the Scottish
Government’s ‘rent cap’.

The average rent in
Edinburgh was
£1,477 Average rental rates for new tenancies rose in Average rents in Edinburgh
many areas of Scotland by double digits for the
during April-June During the second quarter of 2023, the average
2023 third time in a row, as the impact of the Cost of rent for property in Edinburgh jumped 15.1% to
Living (Tenant Protection) (Scotland) Act 2022
£1,477. Aligned with the Scotland-wide average,
took hold. To offset the freeze in rental rates for
two-bedroom properties in the Capital experienced
existing tenancies, compounded by continuing
the biggest rise in rental rates, with a 17.4% increase
rises in mortgage rates, many landlords have
taking the average rate to £1,362.
been raising the rents to maximum levels for
The average new tenancies, exacerbating the supply-demand
time to let in imbalance that has affected the market so A lack of available stock, combined with the rent
Edinburgh was severely in the last few years. cap pushing landlords into raising rates substantially
14 days for new tenancies to make up the shortfall, can be
attributed as the cause for these increases.
The new average rental rate for Scotland’s
private rental sector sat at £1,081 per month,
Across the board, properties in Edinburgh have seen
however the rate of growth eased to 11.4%
substantial growth in rental rates, but especially for
year-on-year from 12.4% in the first quarter of
those looking at renting out a property in the Capital
2023. In Edinburgh, the rental rates jumped 15.1%
as a longer-term venture; on average, rental rates
The highest year-on-year to a new average of £1,477, while in
rental yield was Glasgow, a similar increase of 14.4% saw rents have grown by 80.6% for Edinburgh properties
EH8 rise to an average of £1,141. Across Scotland, two- over the last 10 years, demonstrating how strong an
investment this can be.
(3 bed) bedroom properties saw the biggest increase,
with a 12.8% rise taking the average rental rate of
The area with the highest rental yield was EH8, for a
this property type to £1,006 per calendar month.
three-bedroom property.
Supply and demand remained an issue for
Time to let in Edinburgh
the rental market, with stock levels down 10%
year-on-year as we head into Q3, traditionally 42% of properties for let in Edinburgh were let
the busiest period of the year for new tenancies. within a week, and the average time to let for
Agents and landlords reported an average properties in Edinburgh was 14 days, one day faster
of 100 enquiries per property advertised, than the same time last year.
demonstrating how strong the demand
continued to be for quality rental properties One-bedroom properties were the most in-
across the country. demand with tenants, with an average time to let
of nine days, four days quicker year-on-year. 95%
The average time to let across Scotland was 19 of one-bedroom properties for rent in Edinburgh
days, with one-bedroom properties letting the were let within the month, with 52% letting within
fastest in 16 days. just a week of appearing on the market.

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