Citylets’ latest figures for the rental market in Scotland show that in Q4 2011 two bed flats accounted for 41% of all rentals, while a further 29% involve one bedroom flats. Houses now account for just 20% of all rental transactions but this figure was 13% at the time of the first report from Citylets back in Q1 2007.
The average monthly rent in Scotland now stands at £656, a rise of 1.9 % on Q4 2010. Meanwhile, the average time to let (TTL) figures rose slightly from 35 days in Q4 2010 to 39 days in Q4 2011.
Scotland-wide, the average rent for a two-bedroom flat rose 1.5% from £617 to £626 between the final quarter of 2010 and the same period in 2011. For one bedroom flats, the average rent rose 3.6% year on year, from £473 to £490.
Aberdeen and Edinburgh continued to perform well with rents rising across most property sizes.
Aberdeen remained the most expensive part of the country for rentals, with the average rent for a two bed flat standing at £830 (up 2.1% on Q3 2010), with an average TTL of just 21 days. For one-bedroom properties in the Granite City, rents rose 0.5%to £578, while demand is so great the average TTL is just 18 days.
In Edinburgh, for the period covered, two-bedroom properties attracted an average rent of £711, a year-on-year rise of 1%, while properties took an average 29 days to let. Meanwhile one bed rents reached £555 on average, up 4.1% on the 2010 figure, while average TTL was just 25 days.
In Glasgow properties took slightly longer to rent, with the average TTL for two bed properties increasing from 31 days in Q4 2010 to 39 days in Q4 2011. Average rent for those two-bed homes rosefrom £607 to £611, achange of 0.7%. Scotland’s biggest city saw significant growth in average monthly rents for one bed properties, which hit an average £465, up 4.7% on the Q4 2010 figure, while the average TTL was 36 days.
The Q4 2011 report also includes analysis on the rental market in Dundee. According to the Citylets data, two-bedroom properties attracted an average rent of £542 per month in the final quarter of 2011, while the average TTL was40 days. For one bedroom properties, the average rent in the quarter was £381, a drop of 2.6%, while the average TTL fell from 36 days to 32 days.
After 20 consecutive quarterly publications, the latest Citylets Report – for the last 3 months of 2011 - caps five full years of analysis and reveals a thriving market where the volume of quality properties to let is higher than ever, rents are easing upwards, yet landlords are resisting any urge to squeeze tenants.
Dan Cookson, senior analyst with Citylets, said: “For us this 20 th report is an important milestone, so it is pleasing to see that the private rented sector (PRS) in Scotland has expanded dramatically over the last five years and our reports are of growing relevance.
“Generally landlords are enjoying steady increase in rents, while properties are generally empty for less time. The good news for tenants is that rent rises are well below inflation. Landlords are not being greedy. It’s a competitive market and most of them are in it for the long-term and realise that short term rent hikes are likely to lead to longer void periods.”