Edinburgh average rents now more than £1000 per month
Concern is growing that chronic imbalance between rental supply and demand is setting in within the major conurbations of the Scottish central belt.
The latest Citylets Quarterly Report to Q3 2016 shows average rents in Edinburgh have broken the £1000 per month mark for the first time and annual growth in Glasgow has accelerated from last quarter to 7.2 per cent.
The Edinburgh market has been rising every quarter for 14 consecutive quarters and now Glasgow has recorded the same for the last 11.
Meanwhile Aberdeen has begun to level off with falling TLLs and a falling rate of year-on-year decline.
Steep gains in the central belt have been countered by flat to negative growth elsewhere resulting in 2.4 per cent annual growth for the country as a whole. Average rents now stand at £775 per month with an average Time To Let (TTL) of 30 days.
In the capital, rents have gone up 7.6 per cent over the year to £1014 in a fast moving market with 1 and 2 bed properties renting in 14 and 20 days respectively. A substantial 41 per cent of 1 bed properties and 33 per cent of 2 bed properties in Edinburgh let within a week.
The Glasgow letting market has been rising consistently over the last two and a half years, however Q3 2016 saw annual growth accelerate to 7.2 per cent.
The average property in Glasgow now fetches £733 per month and 70 per cent of all rentals now let within a month. The shift in trajectory now puts growth in Scotland’s largest city on a par with Edinburgh.
It will come as a relief to landlords in Aberdeen to know that the market seems to be levelling off in the Granite city with Q3 2016 recording a slowdown in the annualized rate of decline for average rents and a reduction in TTLs.
Average rents fell 16.7 per cent year-on-year, up from the minus 20 per cent recorded earlier in 2016, to stand at £829 per month.
Overall, the market has fallen 25% from the Q4 2014 market peak. Average TTLs are now 44 days, up 10 days over the year but down from 47 days and 53 days recorded at Q2 2016 and Q1 2016 respectively.
Elsewhere, Dundee recorded a 2.8 per cent annual gain with average rents now at £590 per month. West Lothian and South Lanarkshire both recorded strong annual growth at 5 per cent and 5.8 per cent completing the picture of a strong market throughout the central belt.