According to Citylets’ latest quarterly report, the cost of private rental accommodation is falling throughout Scotland, by an average of -1.1% to £638pcm.

Edinburgh saw the most widespread change, with one and two bed flats down by -1.1% and -1.9% respectively. These are the first annual declines in the capital since Citylets started recording data in 2003.

On average, Edinburgh was -2.6% down on Q4 2008 with an average rent of £732pcm, Glasgow was down -0.7% to £560pcm, and Aberdeen remained virtually unchanged at £860pcm.

One and two bed flats (the largest sector of the rental market) saw the biggest rent falls, while larger properties remained steady, perhaps indicating a greater interest in flat sharing and an early start to the seasonal student market.

Levels of rental stock are soaring due to ‘reluctant landlords’. This is causing rents to drop, despite high demand, and increasing the likelihood of void periods for landlords. With a greater choice of rental properties available, time-to-let averages have increased dramatically.

Thomas Ashdown, managing director of Citylets, said: “I think rents, whilst down slightly pretty much across the board, have done well given the abundance of supply we have seen come onto the market from would-be sellers in some areas.

“However, landlords need to appreciate that one and two bed properties in Edinburgh are taking around 50% longer to rent, and 33% longer in Glasgow, than they were over the same period last year. Void periods are much more likely, and patience in finding the next tenant may be required.

“It will be interesting to observe major conflicting forces affecting demand this year, availability of mortgage finance and rising unemployment. Whilst the sales market remains depressed, supply in Edinburgh in particular seems set to continue to rise, perhaps peaking towards the end of the year. As a result, I would expect greater choice for tenants to continue and hence downward pressure on rents.”