According to the latest quarterly residential rental data report from the Scottish lettings specialist Citylets, the average rent in the third quarter of 2011 now stands at £670 – a 3.2% rise on the same period last year and the highest year-on-year figure since Scotland’s last rental boom in 2008.

“There’s no doubt that the rental market in Scotland is continuing to perform exceptionally well. Demand for accommodation is still extremely high and there are also more properties coming onto the market, providing more choice for prospective tenants.” Dan Cookson, senior analyst with Citylets, said. “We’re seeing continued, moderate growth in the sector, with rents steadily increasing in cities all across Scotland. Renting is firmly established as a lifestyle choice now, rather than just something to do while you save up to buy a property of your own, and many tenants happy to pay a good price for a good property in a desirable location.

“In Edinburgh, the average rent for three bed properties is now over £1000 while rents in Aberdeen remain the highest in the country. However, we’re continuing to see the average time to let falling throughout the country, which proves that the demand for rented accommodation is a strong as ever.”

Cookson added: “Clearly the ongoing limitations on mortgage lending are being reflected in the rental sector, with many people choosing to rent a home for a couple of years while they save up for a deposit for a property of their own. However, there are also many tenants who have decided to shun the property sales market altogether in favour of the kind of long-term renting that is popular across Europe and in cities such as New York.

“All the signs suggest that Scotland’s rental market is stronger than ever and the strong demand for rented properties shows no signs of abating anytime soon.”