Most areas across Scotland see average private rents rise

Private Sector Rent Statistics, Scotland, 2010 to 2016:

Statistics released yesterday by the Scottish Government revealed that 17 out of 18 areas of Scotland saw increases in average rent levels for 2 bedroom private rental properties between 2015 and 2016, ranging from 4.6 per cent in West Dunbartonshire to 0.1 per cent in Dumfries and Galloway.

Aberdeen and Shire saw a decrease of 13.7 per cent, the largest annual drop in average 2 bedroom rents since the data series began in 2010, and which is likely to reflect decreased demand for rental properties following the downturn in the oil industry. These regional trends combine to show a 1.0 per cent increase in average 2 bedroom rents at a Scotland level, the lowest annual increase since 2010.

Over the longer 6 year period from 2010 to 2016, the areas of Lothian, Greater Glasgow and Aberdeen and Shire have all seen 2 bedroom average rents increase above the rate of inflation over the full length of this time period, with all other areas of Scotland seeing cumulative rent increases below the rate of inflation.

The following main findings are based on rent levels from 2010 to 2016 for 2 bedroom properties because these are the most prevalent size of property in the private rented sector.

Over the five year period from 2010 to 2016, the Lothian area has seen the highest increase in private rents for 2 bedroom properties, with average monthly rents rising by 25.1 per cent(cumulative increase over 6 years). Average rents in the Greater Glasgow area have risen by a cumulative 23.5 per cent, whilst rents in Aberdeen and Shire have increased by 17.4 per cent over the full 2010 to 2016 period, despite rents in this area falling by 13.7 per cent on an annual basis between 2015 and 2016.

For the remaining areas of Scotland, cumulative increases over the last 6 years have ranged from 11.4 per cent (Highlands and Islands) to 1.2 per cent (West Dunbartonshire), with a decrease of 0.2 per cent being seen in the Ayrshires. These regional trends combine to show a 14.8 per cent cumulative increase in average rents from 2010 to 2016 for 2 bedroom properties at the Scotland level.

For the year to end-September 2016, Lothian had the highest average monthly rents for 2 bedroom properties across Scotland (£831). Other areas with high rents included Aberdeen and Shire (£754), Greater Glasgow (£696), and East Dunbartonshire (£636). Areas with the lowest average rents for 2 bedroom properties included Dumfries and Galloway (£447),Scottish Borders (£452), and the Ayrshires (£463).

Figures on changes to rents between 2010 and 2016 should be considered in the context of the cumulative increase in the UK Consumer Price Index of 12.6 per cent from Sept-10 to Sept-16. Between Sept-15 and Sept-16, the UK Consumer Price Index increased by 1.0 per cent.