Average monthly rents in Scotland fell by 0.4% in December 2014, down to £536 per month, according to Your Move.
Rents rose by 1.2% in 2014 however this is well below the 3.9% annual growth seen in December 2013. Whilst in Edinburgh & the Lothians there was a rise in annual rent growth from 2.5% in December 2013 to 4.5% in December 2014.
Christine Campbell, regional managing director of Your Move, said: “Annual rent growth has braked sharply over 2014, reducing the speed of rent rises to a sustainable and affordable pace. This is providing some welcome relief to the thousands of renters itching to jump on the housing ladder, who are already faced with enough hurdles to saving a deposit.
“Only Edinburgh is moving against the grain, as demand for homes to let keeps on banging at the gates, and fierce competition feeds bolder rent rises than elsewhere across Scotland.
“This wider downturn in growth during 2014 marks a return to the natural market rhythm. Scottish rents were holding fast on an even keel throughout 2011 and 2012, until the abolition of tenancy fees in November 2012 sparked a new tide of unnaturally steep rent hikes. This should act as cautionary tale for policymakers considering further constricting changes to lettings legislation. The rental market is thriving by its own hand, and too much undue intervention may poison the current climate of affordability.
“Scaring landlords out of the rental market would exacerbate the current housing shortage, and affect thousands of tenants. Buy-to-let investment is a vital remedy for the current housing shortage, and for the health of tenant finances.”
Rents are higher than a year ago in three out of five regions of Scotland, average rents in Edinburgh & the Lothians have seen the fastest year-on-year uplift, climbing £26 (4.5%) in the twelve months to December 2014. A 2.2% annual rise in Glasgow & Clyde takes the average monthly rent to £559, however this still represents a significant deceleration in the pace of annual rent growth, declining from 7.3% a year previously.
