The average monthly rental price in Scotland has increased by 8.5% year-on-year, with the average time-to-let for properties standing at just 20 days.
Analysis from letting platform Citylets found that prices increased to an average of £896 per month, with more than a third of all properties (35%) being let within a week – and 77% let within a month.
In Edinburgh, average property rents rose more than 14% year-on-year, reaching an all time high of £1,214 per month, while Glasgow recorded a 16% annual increase in average monthly rents, to £972.
The report found that “more normalised city living” returned following the lifting of Covid-19 restrictions, albeit with many with hybrid working models.
It noted that “concerns over the rising cost of living and general pervasive uncertainty, supercharged by war in Europe for the first time in nearly 80 years” still failed to dampen the demand for rental property.
Aberdeen stood out among Scottish cities for its continued reduction of supply over the quarter, which is reflected in rising rents, up 3.4% year-on-year to £723, and a fall of time-to-let by 17 days to average 37.
Property to rent in Dundee continued its strong growth, up 12.5% year-on-year to average £722 per month; a new all time high. Time-to-let for the city remained at historic lows, now at 16 days.
Thomas Ashdown, managing director at Citylets, said: “During the pandemic growth slowed in most cities and accelerated in surrounding areas, but now people are back to office working, at least at some level, and seem confident there won’t be any more full lockdowns.
“The appeal of the city lights appears to have endured some extreme disruptions it would seem.”
However, he noted that letting agents remain concerned about the supply of available properties in the private rental sector, with many landlords continuing to sell up while the market is buoyant – or to avoid the threat of increased regulation and the costs that will bring.
Karen Turner, Edinburgh and Glasgow director of lettings at Rettie & Co, said: “With the notice periods reverting back to pre-Covid, there are some landlords who are now looking to sell and exit the market, which will only add to the supply/demand challenges we are facing.
“We should be encouraging more landlords to enter the sector to meet this demand, not discouraging them.”
Don’t miss the latest headlines with our twice-daily newsletter – sign up here for free.
