The rate of rent rises in the private rented sector (PRS) slowed to an average of 5.1% in Scotland in April, which is the lowest monthly figure since November 2022 and is 2.3% lower than the UK average, new data shows.
Only Dumfries and Galloway on 10%, Fife on 8%, and the Scottish Borders on 7.9% have a larger annual price increase than the UK, according to the figures provided by DJ Alexander.
The locations with the lowest annual increases are Greater Glasgow on 3.3%, Perth and Kinross on 3.6%, and Highland increasing by 4.7%.
Between January 2016 and December 2021 average rents in Scotland remained fairly static below 3% but began rising steadily to peak at 11.7% in August 2023. Since then, the rate of annual rents has been falling steadily and has been below the UK average since June 2024.
David Alexander, the chief executive officer of DJ Alexander Scotland, commented: “These figures show that the PRS in Scotland has historically had steady annual increases. The rise in average rents has only really occurred in the last five years due to a number of factors but a shortage of supply is clearly a major element in this.”
“That the average rent rise is lower – and has been below the rest of the UK for almost a year – indicates the fairness of property investors and landlords in setting a reasonable rent for their tenants.”
He continued: “Clearly maintaining a strong supply of properties is key to stabilising prices in the PRS and anything which threatens to subvert this will not be welcomed by landlords or tenants.”
“The PRS in Scotland continues to be a dynamic, vibrant and thriving sector as the number of people seeking a home continues to be greater than the supply. What this should create is a market that shows steady annual rises without the unpredictability of large increases one year followed by dips the next. Steady increases are always preferable to a rollercoaster ride of price rises and falls.”
Alexander added: “Everybody wants a workable, fair, and thriving private rented sector. Ensuring the sector is supported and encouraged is the best way to maintain reasonable rents now and in the future. It is incumbent on everyone involved in the sector that we have a system which is maintained for the long term, which allows landlords to make a profit and tenants to pay a fair rent for the market we are in, and which is sustainable in the medium- to long-term.”
Average rent rises across Scotland to April 2025
Location April 2024 April 2025 Difference
Dumfries/Galloway £478 £526 10.0%
Fife £757 £817 8.0%
Borders £647 £699 7.9%
UK £1,243 1,335 7.4%
South Lanarkshire £809 £868 7.2%
Edinburgh/Lothians £1,333 £1,416 6.2%
North Lanarkshire £763 £810 6.1%
Ayrshire £590 £623 5.8%
Argyll and Bute £785 £830 5.7%
Dundee/Angus £798 £842 5.6%
Aberdeen/Shire £804 £842 5.6%
Scotland £951 £999 5.1%
Highland £667 £698 4.7%
Perth and Kinross £731 £757 3.6%
Greater Glasgow £1,185 £1,224 3.3%
Read the orginal article: https://propertyindustryeye.com/rate-of-rent-increases-slows/
