News

Average two bedroom private rents up by 1.5%

Published: 27 Nov 2018 09:48

An Official Statistics Publication for Scotland.

From 2017 to 2018, all areas of Scotland, with the exception of Aberdeen and Shire, Greater Glasgow and Renfrewshire/Inverclyde, have seen increases in average rents for 2 bedroom properties. 

These have ranged from 0.3% in Perth and Kinross, up to 6.5% in Lothian. Aberdeen and Shire saw a decrease of 4.1%, the fourth consecutive annual decrease, which is likely to reflect decreased demand for rental properties in recent years following the downturn in the oil industry.

These regional trends combine to show an increase of 1.5% in average rents for 2 bedroom properties from £643 in 2017 to £652 in 2018. This compares to an increase in the UK Consumer Price Index of 2.4% in the year to Sept-18.

Over the longer 8 year period from 2010 to 2018, average rents for 2 bedroom properties in Lothian, Greater Glasgow and Forth Valley have risen faster than the rate of inflation of 18.7% over the full length of this time period, with all other fifteen areas of Scotland seeing cumulative rent increases below the rate of inflation.

Statistics on private sector rent levels from 2010 to 2018 have been released today by Scotland's Chief Statistician. The following main findings are based on 2 bedroom properties because these are the most prevalent size of property in the private rented sector. Figures on average rents across all property size categories, i.e. for 1, 2, 3, and 4 bedroom properties as well as 1 bedroom shared properties, are available in the main publication.

Over the 8 year period from 2010 to 2018, the Lothian area has seen the highest increase in private rents for 2 bedroom properties, with average monthly rents rising by 42.3% (cumulative increase over 8 years), whilst average rents in the Greater Glasgow area have risen by a cumulative 31.3%.

For the remaining areas of Scotland, cumulative increases over the last 8 years have ranged from 1.7% in Aberdeen and Shire to 19.5% in Forth Valley. These regional trends combine to show a 21.6% cumulative increase in average rents from 2010 to 2018 for 2 bedroom properties at the Scotland level.

For the year to end-September 2018, Lothian had the highest average monthly rents for 2 bedroom properties across Scotland (£946). Other areas with higher than average (£652) rents included Greater Glasgow (£740), East Dunbartonshire (£684) and Aberdeen and Shire (£654). Areas with the lowest average rents for 2 bedroom properties were Dumfries and Galloway (£461) and The Ayrshires (£475).

Figures on changes to rents over the period from 2010 to 2018 should be considered in the context of the cumulative increase in the UK Consumer Price Index of 18.7% from Sept-10 to Sept-18.

Background

The figures released today were produced in accordance with professional standards set out in the Code of Practice for Official Statistics.

 The full statistical publication includes main findings on rent levels for 1 bedroom, 2 bedroom, 3 bedroom, 4 bedroom, and 1 bedroom shared properties. It presents information on rent levels for these different property sizes across each of the 18 broad rental market areas in Scotland and contains information on average rents as well as rents at the higher and lower end of the market.

The publication uses data from the Rent Service Scotland market evidence database, which is collected for the purposes of determining annual Local Housing Allowance levels and Local Reference Rent. The rental information contained in the market evidence database is largely based on advertised rents, therefore it is important to note that the statistics presented in this publication do not represent rent increases for existing tenants.

 The aim of this statistical publication is to provide a detailed and user friendly presentation of private rental values, trends and distributions. The main users of this publication include those involved in housing policy and practice, researchers, tenants, landlords, letting agents, and other individuals with an interest in the private rented sector.

Official statistics are produced in accordance with professional standards