Main Findings for 1 Bedroom Properties
Over the past year, 13 out of 18 areas have seen increases in average rents for 1 bedroom properties. East Dunbartonshire has seen the highest increase (6.8%) while Greater Glasgow has seen an increase of 4.2%. Both of these areas, as well as Scottish Borders, (3.5%), Lothian (3.3%), Forth Valley (3.2%) and West Lothian (2.7%) are areas that have shown increases which are higher than the CPI inflation of 2.4% in 2017-2018. Other areas that have seen increases range from 0.1% in the Ayrshires to 1.7% in Argyll and Bute. Four areas saw a decrease, ranging from a 0.6% drop in Renfrewshire/Inverclyde to a 5.6% drop in Aberdeen and Shire. This is the third consecutive annual decrease for Aberdeen and Shire, which is likely to reflect decreased demand for rental properties in recent years following the downturn in the oil industry. See Chart 2 and Table 1 below.
Average rents for 1 bedroom properties have increased by 1.7% between 2017 and 2018, at the Scotland level, from £501 in 2017 to £510 in 2018. This compares to an increase in the UK Consumer Price Index of 2.4% in the year to Sept-18.
Figures on changes to rents for 1 bedroom properties 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. Over the 8 year period from 2010 to 2018, two areas have seen rent increases above the level of CPI inflation. Lothian has seen the highest increase in private rents for 1 bedroom properties, with average rents rising by 39.8% (cumulative increase over 8 years) and average rents in the Greater Glasgow area have risen by 30.9% between 2010 and 2018.
For the remaining areas of Scotland, cumulative increases were below CPI inflation and have ranged from 2.0% in West Dunbartonshire to 15.9% in East Dunbartonshire. Two areas saw average rents fall between 2010 and 2018. These were the Ayrshires (-1.3%) and Aberdeen and Shire (-10.6%). These regional trends combine to show a 16.9% cumulative increase for 1 bedroom properties from £436 in 2010 to £510 in 2018.
Chart 2: Cumulative % Change in Average (mean) Rents from 2010 to 2018 (years to end-Sept), by Broad Rental Market Area - 1-Bedroom Properties
Table 1: 1 Bedroom Properties - Average (mean) Monthly Rents (£): Cumulative Changes 2010 to 2018, by Broad Rental Market Area
|2010||2017||2018||2010 to 2018 change||2017 to 2018 change|
|Highland and Islands||415||470||471||13.4%||0.0%|
|Dundee and Angus||351||394||390||11.2%||-0.9%|
|Argyll and Bute||382||417||424||11.0%||1.7%|
|Perth and Kinross||377||416||410||8.6%||-1.5%|
|Dumfries and Galloway||359||383||389||8.3%||1.4%|
|Renfrewshire / Inverclyde||374||387||384||2.7%||-0.6%|
|Aberdeen and Shire||529||501||473||-10.6%||-5.6%|
See Reference Tables (Tables 7 to 15) for a more detailed breakdown of quartile and average rents for each year.
For the year to end-September 2018, Lothian had the highest average monthly rents for 1 bedroom properties across Scotland (£728), with Greater Glasgow having rents of £572. Areas with the lowest average rents for 1 bedroom properties included Scottish Borders (£357) and Ayrshires (£370). See Chart 3 below.
Chart 3: Average (mean) Monthly Rents 2018 (year to end-Sept), by Broad Rental Market Area - 1-Bedroom Properties
Email: Felix Palin