Rent in Scotland reaches record highs

According to a recent report there has been a spike in demand for inner city homes, pushing rents to record highs – great news for landlords, but less so for renters.

Following the pandemic, demand for urban homes fell drastically as tenants prioritised inside and outside space to enable them to work at home, school their children and socialise without leaving their property. Moving to more rural areas enabled people to get more space for their money. In addition, corporate, student and short-term lets were no longer in demand as we faced months of restrictions.

The quarterly report shows that prices for rental properties in Glasgow have increased significantly as supply cannot keep up with the current demand. It gives an overview of the lettings market for the first Quarter of this year and shows that demand for rental properties in both rural and urban areas is in high demand, but the number of available houses and flats was higher only slightly higher than the historic low reported in the fourth Quarter of last year.

Although there are slightly more properties than the end of last year, this doesn’t look like it’s going to improve in the short-term and this could further push up rents – especially as many landlords are exiting the market.

 

What you can expect to pay/ earn from rental properties in Scotland

The average monthly rent in Scotland went up by 8.5% year on year to £896 with the average time to let is currently less than three weeks, standing at just 20 days. More than 35% were let within one week and 77% were let within one month.

In Glasgow there was a 16% annual increase bringing the average rent to £972. Meanwhile Edinburgh saw the average rent rise by 14% year on year reaching £1,214 per month.

 

The current housing market in Glasgow

It appears that city living has made a comeback following the pandemic. Offices have reopened, universities and colleges are now teaching students in-person, and there is once again demand for people living close to public transport. In addition, with rising interest rates and mortgage costs rising, first-time buyers are finding it difficult to secure a mortgage and continuing to rent whilst they save.

We are seeing a cost-of-living crisis due to the conflict in Ukraine, the economic recovery from the pandemic and the rise in inflation. Despite this, the market is very busy as people want to get back to normal and press ahead with plans that were put on hold.

There is still a real concern about the supply of properties available in the lettings market, especially in Glasgow City Centre and the ever-popular West End. Many landlords are selling up whilst the market is still buoyant and asking prices are high – again due to lack of supply. In addition, many landlords are trying to avoid the threat of increased legislation and taking steps to alleviate their own cost of living.

 

Get in touch with us to discuss available property to rent

We have a number of houses to rent within Glasgow, to discuss our current options, please get in touch via 07833 564331 or email innes@home-west.co.uk.

Or indeed, if you’re considering letting your property, talk to us today to get advice and an overview of the market here in Glasgow’s City and West End markets.